Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Time Warner Cable Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Time Warner Cable Inc. gross profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Time Warner Cable Inc. operating profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Time Warner Cable Inc. net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Time Warner Cable Inc. ROE deteriorated from 2013 to 2014 and from 2014 to 2015. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Time Warner Cable Inc. ROA improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Gross Profit Margin
Time Warner Cable Inc., gross profit margin 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) | ||||||
| Gross profit | 17,882) | 17,518) | 17,170) | 16,683) | 10,537) | |
| Revenue | 23,697) | 22,812) | 22,120) | 21,386) | 19,675) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 75.46% | 76.79% | 77.62% | 78.01% | 53.56% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| 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 2015 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 17,882 ÷ 23,697 = 75.46%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Time Warner Cable Inc. gross profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Operating Profit Margin
Time Warner Cable Inc., operating profit margin 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) | ||||||
| Operating income | 4,239) | 4,632) | 4,580) | 4,445) | 4,069) | |
| Revenue | 23,697) | 22,812) | 22,120) | 21,386) | 19,675) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 17.89% | 20.31% | 20.71% | 20.78% | 20.68% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| 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 2015 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 4,239 ÷ 23,697 = 17.89%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Time Warner Cable Inc. operating profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Net Profit Margin
Time Warner Cable Inc., net profit margin 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 income attributable to TWC shareholders | 1,844) | 2,031) | 1,954) | 2,155) | 1,665) | |
| Revenue | 23,697) | 22,812) | 22,120) | 21,386) | 19,675) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 7.78% | 8.90% | 8.83% | 10.08% | 8.46% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| 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 2015 Calculation
Net profit margin = 100 × Net income attributable to TWC shareholders ÷ Revenue
= 100 × 1,844 ÷ 23,697 = 7.78%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Time Warner Cable Inc. net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Return on Equity (ROE)
Time Warner Cable Inc., ROE 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 income attributable to TWC shareholders | 1,844) | 2,031) | 1,954) | 2,155) | 1,665) | |
| Total TWC shareholders’ equity | 8,995) | 8,013) | 6,943) | 7,279) | 7,530) | |
| Profitability Ratio | ||||||
| ROE1 | 20.50% | 25.35% | 28.14% | 29.61% | 22.11% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| 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 2015 Calculation
ROE = 100 × Net income attributable to TWC shareholders ÷ Total TWC shareholders’ equity
= 100 × 1,844 ÷ 8,995 = 20.50%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Time Warner Cable Inc. ROE deteriorated from 2013 to 2014 and from 2014 to 2015. |
Return on Assets (ROA)
Time Warner Cable Inc., ROA 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 income attributable to TWC shareholders | 1,844) | 2,031) | 1,954) | 2,155) | 1,665) | |
| Total assets | 49,277) | 48,501) | 48,273) | 49,809) | 48,276) | |
| Profitability Ratio | ||||||
| ROA1 | 3.74% | 4.19% | 4.05% | 4.33% | 3.45% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| 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 2015 Calculation
ROA = 100 × Net income attributable to TWC shareholders ÷ Total assets
= 100 × 1,844 ÷ 49,277 = 3.74%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Time Warner Cable Inc. ROA improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |