Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Selected Financial Data since 2006
- Operating Profit Margin since 2006
- Return on Equity (ROE) since 2006
- Return on Assets (ROA) since 2006
- Price to Operating Profit (P/OP) since 2006
- Analysis of Debt
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Return on Invested Capital (ROIC)
Time Warner Cable Inc., ROIC calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2015 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The financial data over the five-year period from 2011 to 2015 reveals a fluctuating performance in terms of profitability and capital efficiency.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT exhibited variability, starting at 3,328 million USD in 2011 and increasing to a peak of 3,807 million USD in 2012. Subsequently, it declined to 3,388 million USD in 2013, rebounded to 3,745 million USD in 2014, and then decreased again to 3,391 million USD in 2015. This pattern indicates periodic fluctuations without a clear upward or downward long-term trend.
- Invested Capital
- Invested capital remained relatively stable throughout the period, ranging narrowly between 44,327 million USD and 46,124 million USD. The figure saw a slight increase from 44,961 million USD in 2011 to 46,124 million USD in 2012, followed by a moderate decline and minor fluctuations in the subsequent years, ending at 45,332 million USD in 2015. This constancy suggests limited changes in the company's capital base during these years.
- Return on Invested Capital (ROIC)
- The ROIC followed a fluctuating pattern in alignment with the movements in NOPAT and invested capital. Starting at 7.4% in 2011, it improved to 8.25% in 2012, dropped slightly to 7.64% in 2013, rose again to a peak of 8.34% in 2014, and declined to 7.48% in 2015. These variations reflect changes in operational efficiency and profitability relative to capital invested, with no sustained trend of improvement or deterioration.
Overall, the financial indicators suggest that while the company maintained a relatively stable capital base, the profitability and efficiency metrics showed moderate variability. The absence of a consistent upward trajectory in ROIC and NOPAT may point to challenges in achieving steady operational improvements during the assessed period.
Decomposition of ROIC
Time Warner Cable Inc., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | = | × | × | ||||
| Dec 31, 2014 | = | × | × | ||||
| Dec 31, 2013 | = | × | × | ||||
| Dec 31, 2012 | = | × | × | ||||
| Dec 31, 2011 | = | × | × |
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
- Operating profit margin (OPM)
- The operating profit margin exhibited a fluctuating trend over the five-year period. It increased from 20.49% in 2011 to a peak of 23.37% in 2012, followed by a decline to 21.11% in 2013 and a further slight decrease to 20.67% in 2014. In 2015, the margin continued to decline to 18.75%, indicating a gradual reduction in operational profitability in the latter years.
- Turnover of capital (TO)
- Turnover of capital showed a consistent upward trajectory throughout the period under review. Starting from a low of 0.44 in 2011, it gradually increased each year, reaching 0.46 in 2012, 0.50 in 2013, 0.51 in 2014, and peaking at 0.52 in 2015. This trend suggests improving efficiency in the utilization of capital to generate revenue.
- 1 – Effective cash tax rate (CTR)
- The metric measuring one minus the effective cash tax rate displayed variability, with values ranging between approximately 72.56% and 82.52%. It decreased from 82.52% in 2011 to a low of 72.56% in 2013, rose again to 79.38% in 2014, and declined slightly to 76.24% in 2015. These fluctuations may reflect changing tax strategies or variations in taxable income over the years.
- Return on invested capital (ROIC)
- Return on invested capital experienced moderate changes, rising from 7.4% in 2011 to 8.25% in 2012, before declining to 7.64% in 2013. It then increased again to 8.34% in 2014, followed by a reduction to 7.48% in 2015. This pattern indicates some volatility in the returns generated from invested capital, with no clear long-term upward or downward trend.
Operating Profit Margin (OPM)
Time Warner Cable Inc., OPM calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue and subscriber-related liabilities | ||||||
| Adjusted revenue | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2015 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit Before Taxes (NOPBT)
- The net operating profit before taxes exhibited an initial increase from 4,033 million US dollars in 2011 to 5,002 million US dollars in 2012. This was followed by a decline to 4,670 million in 2013. The figure then stabilized somewhat, showing a minor increase to 4,718 million in 2014, but subsequently decreased again to 4,447 million in 2015. Overall, the trend indicates variability with a peak in 2012 and a gradual reduction in profitability thereafter.
- Adjusted Revenue
- Adjusted revenue demonstrated a steady upward trajectory throughout the observed period. The revenue grew consistently from 19,681 million US dollars in 2011 to 23,723 million in 2015. This represents a sustained increase in revenue, reflecting broader growth in the company's operational scale or sales volume over these years.
- Operating Profit Margin (OPM)
- The operating profit margin reached its highest point in 2012 at 23.37%, following 20.49% in 2011. After this peak, the margin declined progressively to 21.11% in 2013 and then to 20.67% in 2014. By 2015, the margin had fallen further to 18.75%. This downward trend in operating efficiency suggests increasing operational costs or pressures on profitability despite rising revenues.
Turnover of Capital (TO)
Time Warner Cable Inc., TO calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue and subscriber-related liabilities | ||||||
| Adjusted revenue | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
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).
1 Invested capital. See details »
2 2015 Calculation
TO = Adjusted revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
- Adjusted Revenue
- The adjusted revenue exhibits a consistent upward trend over the five-year period. Starting at $19,681 million in 2011, it increased each year, reaching $23,723 million by 2015. This reflects a steady growth rate and suggests effective revenue-generating activities during the years analyzed.
- Invested Capital
- The invested capital shows relative stability with minor fluctuations throughout the period. Beginning at $44,961 million in 2011, there was a slight increase to $46,124 million in 2012, followed by a decrease to $44,327 million in 2013. Subsequent years show modest increases again, culminating at $45,332 million in 2015. Overall, the capital invested remained within a narrow range, indicating controlled capital expenditures or asset investments.
- Turnover of Capital (TO)
- The turnover of capital ratio demonstrates a steady improvement from 0.44 in 2011 to 0.52 in 2015. This increasing trend indicates that the company improved its efficiency in generating revenue from its invested capital over the analyzed period. The rise in turnover aligns with the growth in adjusted revenue and relatively stable invested capital, highlighting better utilization of the capital base.
Effective Cash Tax Rate (CTR)
Time Warner Cable Inc., CTR calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2015 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
- Cash Operating Taxes
- The cash operating taxes showed a general upward trend over the period, increasing from 705 million US dollars in 2011 to 1,057 million US dollars in 2015. There was a significant rise from 2011 to 2012, reaching 1,194 million US dollars, followed by a further increase to 1,281 million US dollars in 2013. However, there was a decline in 2014 to 973 million US dollars before recovering slightly in 2015. This pattern indicates some volatility but overall growth in cash operating tax payments.
- Net Operating Profit Before Taxes (NOPBT)
- The net operating profit before taxes experienced fluctuations during the five-year span. Starting at 4,033 million US dollars in 2011, NOPBT grew to a peak of 5,002 million US dollars in 2012. Subsequent years showed a decline in 2013 to 4,670 million US dollars, followed by a marginal increase to 4,718 million US dollars in 2014, and then a decrease again in 2015 to 4,447 million US dollars. Overall, the profit levels remained relatively stable after the initial rise in 2012 but did not return to the peak level observed in that year.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate exhibited variability throughout the period. Starting at 17.48% in 2011, it increased markedly to 23.87% in 2012 and continued to rise to 27.44% in 2013. In 2014, the rate decreased notably to 20.62%, but then increased again to 23.76% in 2015. This volatility suggests changes in tax planning, profitability mix, or legislative impacts affecting the cash tax burden relative to pre-tax profits over time.