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
- Operating Income (Loss)
- The operating income exhibited notable fluctuations over the period under review. It started at $2,179 million in 2006 and increased to $2,766 million in 2007, indicating growth. However, a significant loss occurred in 2008, amounting to negative $11,782 million. This sudden decline was followed by a recovery phase, with operating income rebounding to positive territory at $3,317 million in 2009 and continuing to rise steadily, peaking at $4,632 million in 2014 before a slight decrease to $4,239 million in 2015.
- Revenue
- Revenue demonstrated consistent growth throughout the decade. Beginning at $11,767 million in 2006, revenue increased steadily each year, reaching $23,697 million by 2015. The growth trajectory was uninterrupted, reflecting a continuous upward trend in the company’s top-line performance with an approximate doubling over the period.
- Operating Profit Margin
- The operating profit margin showed relative stability with fluctuations corresponding to the operating income trend. Starting at 18.52% in 2006, it slightly decreased to 17.34% in 2007. The margin sharply declined to -68.50% in 2008 in line with the operating loss recorded that year. From 2009 onwards, the margin returned to positive levels, ranging between approximately 18.56% and 20.78% from 2009 through 2014, indicating consistent operational profitability. There was a decline to 17.89% in 2015, marking a decrease from previous years but remaining at a reasonable level.
- Summary of Trends
- Overall, the data indicates a company that experienced a severe setback in operating income and profitability in 2008, likely due to extraordinary or one-time events. Despite this, revenue growth was steady and uninterrupted, suggesting a solid underlying business expansion. After 2008, operating income and profit margins recovered and stabilized, maintaining a healthy margin above 17% for most of the subsequent years. The slight dip in operating income and margin in 2015 may warrant further examination but does not negate the positive momentum observed following the 2008 downturn.
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).