Operating Profit Margin
since 2006
Calculation
Time Warner Cable Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 17.89% | = | 100 | × | 4,239) | ÷ | 23,697) |
| Dec 31, 2014 | 20.31% | = | 100 | × | 4,632) | ÷ | 22,812) |
| Dec 31, 2013 | 20.71% | = | 100 | × | 4,580) | ÷ | 22,120) |
| Dec 31, 2012 | 20.78% | = | 100 | × | 4,445) | ÷ | 21,386) |
| Dec 31, 2011 | 20.68% | = | 100 | × | 4,069) | ÷ | 19,675) |
| Dec 31, 2010 | 19.55% | = | 100 | × | 3,689) | ÷ | 18,868) |
| Dec 31, 2009 | 18.56% | = | 100 | × | 3,317) | ÷ | 17,868) |
| Dec 31, 2008 | -68.50% | = | 100 | × | (11,782) | ÷ | 17,200) |
| Dec 31, 2007 | 17.34% | = | 100 | × | 2,766) | ÷ | 15,955) |
| Dec 31, 2006 | 18.52% | = | 100 | × | 2,179) | ÷ | 11,767) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
1 US$ in millions
The financial performance between 2006 and 2015 is characterized by consistent revenue growth and a period of margin expansion following a significant operational anomaly in 2008. While top-line growth remained uninterrupted throughout the decade, operating profitability experienced extreme volatility before stabilizing and eventually facing a slight compression toward the end of the period.
- Revenue Trajectory
- A sustained upward trend in revenue is observed, with figures increasing from US$ 11,767 million in 2006 to US$ 23,697 million in 2015. This indicates a steady expansion of the company's scale of operations over the ten-year duration.
- Operating Profitability and the 2008 Anomaly
- Operating margins were relatively stable at approximately 17% to 18% during 2006 and 2007. An exceptional decline occurred in 2008, where operating income fell to a loss of US$ 11,782 million, resulting in a margin contraction to -68.50%. This represents a singular, extreme outlier in an otherwise positive profitability trend.
- Recovery and Margin Optimization
- A rapid recovery followed the 2008 downturn, with the operating profit margin returning to 18.56% in 2009. A period of steady improvement followed, with margins peaking at 20.78% in 2012. This suggests a successful realignment of operating costs and an increase in operational efficiency during the early 2010s.
- Recent Margin Compression
- After maintaining margins above 20% from 2011 through 2014, a downward shift is noted in 2015. The operating profit margin declined to 17.89%, coinciding with a decrease in operating income to US$ 4,239 million despite continued revenue growth, indicating a rise in operating expenses relative to income.
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Comparison to Competitors
Time Warner Cable Inc., operating profit margin, long-term trends, comparison to competitors
| Time Warner Cable Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 17.89% | 25.82% | 21.47% | 34.72% | 4.51% |
| Dec 31, 2014 | 20.31% | 24.99% | 21.67% | 40.06% | 7.31% |
| Dec 31, 2013 | 20.71% | 23.34% | 20.98% | 35.62% | 5.22% |
| Dec 31, 2012 | 20.78% | 25.43% | 19.46% | 10.57% | 1.39% |
| Dec 31, 2011 | 20.68% | 30.98% | 19.20% | — | 11.74% |
| Dec 31, 2010 | 19.55% | 35.40% | 21.03% | — | 13.12% |
| Dec 31, 2009 | 18.56% | 35.15% | 20.18% | — | 11.49% |
| Dec 31, 2008 | -68.50% | 30.43% | 19.65% | — | 8.90% |
| Dec 31, 2007 | 17.34% | 30.64% | 18.05% | — | 7.56% |
| Dec 31, 2006 | 18.52% | 33.48% | 18.50% | — | 6.46% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).