Return on Equity (ROE)
since 2006
Calculation
Time Warner Cable Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to TWC shareholders1 | ÷ | Total TWC shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 20.50% | = | 100 | × | 1,844) | ÷ | 8,995) |
| Dec 31, 2014 | 25.35% | = | 100 | × | 2,031) | ÷ | 8,013) |
| Dec 31, 2013 | 28.14% | = | 100 | × | 1,954) | ÷ | 6,943) |
| Dec 31, 2012 | 29.61% | = | 100 | × | 2,155) | ÷ | 7,279) |
| Dec 31, 2011 | 22.11% | = | 100 | × | 1,665) | ÷ | 7,530) |
| Dec 31, 2010 | 14.20% | = | 100 | × | 1,308) | ÷ | 9,210) |
| Dec 31, 2009 | 12.32% | = | 100 | × | 1,070) | ÷ | 8,685) |
| Dec 31, 2008 | -42.79% | = | 100 | × | (7,344) | ÷ | 17,164) |
| Dec 31, 2007 | 4.55% | = | 100 | × | 1,123) | ÷ | 24,706) |
| Dec 31, 2006 | 8.39% | = | 100 | × | 1,976) | ÷ | 23,564) |
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 data reveals several significant trends in the company’s performance over the analyzed period.
- Net Income (Loss) Attributable to TWC Shareholders
- Net income showed considerable volatility throughout the years. Starting at US$1,976 million in 2006, it declined sharply to US$1,123 million in 2007 and then plunged into a substantial loss of US$7,344 million in 2008. From 2009 onwards, net income recovered steadily, rising from US$1,070 million to peak at US$2,155 million in 2012. Subsequently, it experienced a slight downward trend but remained positive, ending at US$1,844 million in 2015.
- Total TWC Shareholders’ Equity
- Shareholders’ equity decreased significantly over the period. Beginning at US$23,564 million in 2006, it dipped moderately through 2007 but underwent a sharp fall in 2008 to US$17,164 million. This decline intensified in 2009, dropping to US$8,685 million. From 2010 onwards, equity values showed minor fluctuations but largely remained suppressed, ending at US$8,995 million in 2015, well below the initial levels.
- Return on Equity (ROE)
- ROE mirrored the volatility observed in net income. After a decrease from 8.39% in 2006 to a low of 4.55% in 2007, it plummeted to -42.79% in 2008, reflecting the significant net loss that year. The ROE then rebounded strongly, hitting a peak of 29.61% in 2012. From that peak, ROE experienced a gradual decline, yet remained relatively high above 20%, finishing at 20.5% in 2015.
Overall, the analysis indicates that the company faced substantial financial challenges around 2008, as evidenced by the sizable net loss and sharp decreases in equity and ROE. Nonetheless, recovery was evident from 2009 through 2012, with profitability and returns reaching strong levels despite shareholders’ equity not recovering fully to prior highs. The data suggest a period of restructuring or significant events impacting equity, impacting the overall financial stability despite improving profitability metrics in later years.
Comparison to Competitors
Time Warner Cable Inc., ROE, 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 | 20.50% | 13.59% | 15.62% | 8.34% | 5.52% | 18.83% |
| Dec 31, 2014 | 25.35% | 13.82% | 15.90% | 8.14% | 14.36% | 16.68% |
| Dec 31, 2013 | 28.14% | 14.80% | 13.45% | 9.70% | 8.43% | 13.51% |
| Dec 31, 2012 | 29.61% | 14.97% | 12.57% | 0.45% | 2.30% | 14.29% |
| Dec 31, 2011 | 22.11% | 16.75% | 8.80% | — | 35.18% | 12.86% |
| Dec 31, 2010 | 14.20% | 18.39% | 8.20% | — | 55.44% | 10.56% |
| Dec 31, 2009 | 12.32% | 18.11% | 8.52% | — | 58.18% | 9.80% |
| Dec 31, 2008 | -42.79% | 14.97% | 6.30% | — | 23.92% | 13.70% |
| Dec 31, 2007 | 4.55% | 18.53% | 6.26% | — | 15.54% | 15.24% |
| Dec 31, 2006 | 8.39% | 18.06% | 6.15% | — | 11.85% | 10.60% |
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., ROE, long-term trends, comparison to sector (media & entertainment)
| Time Warner Cable Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2015 | 20.50% | 13.93% |
| Dec 31, 2014 | 25.35% | 13.96% |
| Dec 31, 2013 | 28.14% | 13.73% |
| Dec 31, 2012 | 29.61% | 13.09% |
| Dec 31, 2011 | 22.11% | 13.20% |
| Dec 31, 2010 | 14.20% | 12.67% |
| Dec 31, 2009 | 12.32% | 12.06% |
| Dec 31, 2008 | -42.79% | 11.13% |
| Dec 31, 2007 | 4.55% | 12.13% |
| Dec 31, 2006 | 8.39% | 9.99% |
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., ROE, long-term trends, comparison to industry (communication services)
| Time Warner Cable Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2015 | 20.50% | 16.38% |
| Dec 31, 2014 | 25.35% | 14.00% |
| Dec 31, 2013 | 28.14% | 16.63% |
| Dec 31, 2012 | 29.61% | 10.32% |
| Dec 31, 2011 | 22.11% | 8.87% |
| Dec 31, 2010 | 14.20% | 13.88% |
| Dec 31, 2009 | 12.32% | 11.62% |
| Dec 31, 2008 | -42.79% | 12.77% |
| Dec 31, 2007 | 4.55% | 11.11% |
| Dec 31, 2006 | 8.39% | 8.87% |
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).