Return on Assets (ROA)
since 2006
Calculation
Time Warner Cable Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to TWC shareholders1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 3.74% | = | 100 | × | 1,844) | ÷ | 49,277) |
| Dec 31, 2014 | 4.19% | = | 100 | × | 2,031) | ÷ | 48,501) |
| Dec 31, 2013 | 4.05% | = | 100 | × | 1,954) | ÷ | 48,273) |
| Dec 31, 2012 | 4.33% | = | 100 | × | 2,155) | ÷ | 49,809) |
| Dec 31, 2011 | 3.45% | = | 100 | × | 1,665) | ÷ | 48,276) |
| Dec 31, 2010 | 2.85% | = | 100 | × | 1,308) | ÷ | 45,822) |
| Dec 31, 2009 | 2.45% | = | 100 | × | 1,070) | ÷ | 43,694) |
| Dec 31, 2008 | -15.34% | = | 100 | × | (7,344) | ÷ | 47,889) |
| Dec 31, 2007 | 1.98% | = | 100 | × | 1,123) | ÷ | 56,600) |
| Dec 31, 2006 | 3.54% | = | 100 | × | 1,976) | ÷ | 55,743) |
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 trajectory from 2006 to 2015 is characterized by an initial period of instability, a sharp contraction in 2008, and a subsequent recovery toward a stable equilibrium in asset utilization.
- Asset Utilization and Return Volatility
- The Return on Assets (ROA) exhibited extreme fluctuation during the first four years of the analyzed period. After a decline from 3.54% in 2006 to 1.98% in 2007, a severe contraction occurred in 2008, with ROA dropping to -15.34%. This collapse was primarily the result of a substantial net loss of $7.344 billion recorded against a reduced asset base of $47.889 billion, suggesting a significant non-recurring financial event or impairment.
- Post-Crisis Recovery and Efficiency Gains
- A steady recovery is evident from 2009 through 2012. During this interval, ROA improved from 2.45% to a period high of 4.33%. This positive trend was supported by a consistent increase in net income, which rose from $1.070 billion in 2009 to $2.155 billion in 2012, while total assets were managed within a range of $43.694 billion to $49.809 billion, indicating improved operational efficiency.
- Late-Period Stabilization
- Between 2013 and 2015, a phase of relative stagnation in asset efficiency is observed. ROA fluctuated slightly, moving from 4.05% in 2013 to 3.74% by the end of 2015. This stabilization reflects a plateau in net income, which peaked in 2014 at $2.031 billion, while the total asset base remained nearly constant, ending the period at $49.277 billion.
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Comparison to Competitors
Time Warner Cable Inc., ROA, long-term trends, comparison to competitors
| Time Warner Cable Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2015 | 3.74% | 11.09% | 4.90% | 7.46% | 1.20% | 9.51% |
| Dec 31, 2014 | 4.19% | 11.01% | 5.26% | 7.32% | 3.78% | 8.91% |
| Dec 31, 2013 | 4.05% | 11.65% | 4.29% | 8.38% | 2.08% | 7.55% |
| Dec 31, 2012 | 4.33% | 11.45% | 3.76% | 0.35% | 0.43% | 7.59% |
| Dec 31, 2011 | 3.45% | 13.42% | 2.64% | — | 7.37% | 6.66% |
| Dec 31, 2010 | 2.85% | 14.70% | 3.07% | — | 16.38% | 5.73% |
| Dec 31, 2009 | 2.45% | 16.10% | 3.23% | — | 17.04% | 5.24% |
| Dec 31, 2008 | -15.34% | 13.31% | 2.25% | — | 13.44% | 7.08% |
| Dec 31, 2007 | 1.98% | 16.59% | 2.28% | — | 10.35% | 7.69% |
| Dec 31, 2006 | 3.54% | 16.66% | 2.29% | — | 8.06% | 5.62% |
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).
Comparison to Sector (Media & Entertainment)
Time Warner Cable Inc., ROA, long-term trends, comparison to sector (media & entertainment)
| Time Warner Cable Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2015 | 3.74% | 7.95% |
| Dec 31, 2014 | 4.19% | 7.95% |
| Dec 31, 2013 | 4.05% | 7.34% |
| Dec 31, 2012 | 4.33% | 6.43% |
| Dec 31, 2011 | 3.45% | 6.19% |
| Dec 31, 2010 | 2.85% | 6.60% |
| Dec 31, 2009 | 2.45% | 6.26% |
| Dec 31, 2008 | -15.34% | 5.43% |
| Dec 31, 2007 | 1.98% | 5.76% |
| Dec 31, 2006 | 3.54% | 4.77% |
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).
Comparison to Industry (Communication Services)
Time Warner Cable Inc., ROA, long-term trends, comparison to industry (communication services)
| Time Warner Cable Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2015 | 3.74% | 5.86% |
| Dec 31, 2014 | 4.19% | 4.94% |
| Dec 31, 2013 | 4.05% | 5.87% |
| Dec 31, 2012 | 4.33% | 3.63% |
| Dec 31, 2011 | 3.45% | 3.13% |
| Dec 31, 2010 | 2.85% | 5.26% |
| Dec 31, 2009 | 2.45% | 4.17% |
| Dec 31, 2008 | -15.34% | 4.53% |
| Dec 31, 2007 | 1.98% | 4.38% |
| Dec 31, 2006 | 3.54% | 3.48% |
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).