Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Time Warner Cable Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
- Gross Profit Margin
- The gross profit margin experienced a notable increase from early 2012 through late 2013, rising from approximately 53.6% to a peak of 77.62% at the end of 2013. Following this peak, the margin stabilized and slightly declined, maintaining a range between 75.3% and 77.6% through to the first quarter of 2016. This trend suggests improved cost management or pricing strategies that significantly enhanced gross profitability initially, with a sustained high margin in subsequent periods.
- Operating Profit Margin
- The operating profit margin remained relatively stable from 2012 to 2013, fluctuating around the 20.5% to 20.8% range. However, starting in 2014, a gradual downward trend is evident, with the margin decreasing steadily from approximately 20.75% at the start of 2014 to about 17.83% by March 2016. This declining pattern indicates increasing operating expenses or pressures on operational efficiency over time, despite the strong gross profit margins observed.
- Net Profit Margin
- The net profit margin demonstrated moderate fluctuations during the period. It initially increased from around 8.6% in early 2012 to over 10% in late 2012 and 2013, implying improved bottom-line profitability at that time. Subsequently, the margin experienced a gentle decline, stabilizing at approximately 7.8% by the first quarter of 2016. This decrease highlights that further downstream expenses or costs beyond operating expenses might have increased, impacting net profitability negatively.
- Return on Equity (ROE)
- Return on equity showed a strong upward movement from 2012 to around mid-2013, peaking just above 32%. After this peak, a consistent and significant downward trend emerged through to 2016, where ROE decreased to approximately 20%. This decline suggests diminishing effectiveness in generating returns for shareholders, likely reflecting the combined effects of reduced net margins and potential changes in financial leverage or equity base.
- Return on Assets (ROA)
- The return on assets followed a somewhat similar pattern, increasing from roughly 3.5% in early 2012 to a peak near 4.5% in mid-2013. Afterward, ROA gradually declined to about 3.75% by early 2016. This trend indicates a reduction in the overall efficiency with which the company utilized its assets to generate profits, aligning with the decreases observed in both operating and net profit margins.
Return on Sales
Return on Investment
Gross Profit Margin
Time Warner Cable Inc., gross profit margin calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross profit | 4,640) | 4,626) | 4,461) | 4,437) | 4,358) | 4,472) | 4,388) | 4,385) | 4,273) | 4,346) | 4,308) | 4,316) | 4,200) | 2,920) | 2,864) | 2,930) | 2,730) | ||||||
| Revenue | 6,191) | 6,072) | 5,922) | 5,926) | 5,777) | 5,790) | 5,714) | 5,726) | 5,582) | 5,577) | 5,518) | 5,550) | 5,475) | 5,485) | 5,363) | 5,404) | 5,134) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 75.33% | 75.46% | 75.71% | 76.08% | 76.51% | 76.79% | 76.96% | 77.28% | 77.58% | 77.62% | 71.47% | 65.38% | 59.44% | 53.51% | 53.77% | 53.79% | 53.61% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2016 Calculation
Gross profit margin = 100
× (Gross profitQ1 2016
+ Gross profitQ4 2015
+ Gross profitQ3 2015
+ Gross profitQ2 2015)
÷ (RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015
+ RevenueQ2 2015)
= 100 × (4,640 + 4,626 + 4,461 + 4,437)
÷ (6,191 + 6,072 + 5,922 + 5,926)
= 75.33%
2 Click competitor name to see calculations.
The financial data over the examined periods reveals several notable trends regarding revenue, gross profit, and gross profit margin.
- Revenue Trends
- Revenue demonstrates a steady upward trajectory throughout the periods. Starting at approximately 5,134 million USD in early 2012, it increased consistently each quarter, reaching around 6,191 million USD by the first quarter of 2016. There are no evident signs of revenue contraction or stagnation; rather, the growth appears incremental and stable across the years.
- Gross Profit Trends
- Gross profit also increases progressively over the timeline, following a pattern similar to revenue growth. Beginning near 2,730 million USD in the first quarter of 2012, gross profit rises steadily to approximately 4,640 million USD by the beginning of 2016. This gain indicates effective cost management or improvements in pricing strategy, contributing positively to the company's profitability.
- Gross Profit Margin Trends
- The gross profit margin exhibits a significant and consistent upward trend. Starting at around 53.6% in early 2012, the margin rose steadily each quarter, surpassing 75% by 2013 and maintaining a level in the range of approximately 75-77% through the first quarter of 2016. This substantial enhancement in margin percentage suggests improved operational efficiencies, cost controls, or product mix optimization that allowed the company to retain a higher portion of revenue as gross profit over time.
- Combined Analysis
- The concurrent increase in revenue, gross profit, and margin indicates a strengthening financial position. The rise in revenue confirms growing business activity, while the enhancement in gross profit margin implies better profitability per unit of revenue. Such a pattern reflects a combination of successful revenue generation strategies and effective cost management.
- Summary
- Overall, the data portrays a positive financial performance characterized by consistent revenue growth, increasing gross profit in absolute terms, and a remarkable improvement in gross profit margin. These trends reflect a company that has not only expanded its scale but has also become more efficient and profitable over the examined time frame.
Operating Profit Margin
Time Warner Cable Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income | 1,145) | 1,125) | 1,001) | 1,029) | 1,084) | 1,226) | 1,151) | 1,163) | 1,092) | 1,173) | 1,160) | 1,187) | 1,060) | 1,169) | 1,094) | 1,140) | 1,042) | ||||||
| Revenue | 6,191) | 6,072) | 5,922) | 5,926) | 5,777) | 5,790) | 5,714) | 5,726) | 5,582) | 5,577) | 5,518) | 5,550) | 5,475) | 5,485) | 5,363) | 5,404) | 5,134) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 17.83% | 17.89% | 18.54% | 19.35% | 20.10% | 20.31% | 20.26% | 20.48% | 20.75% | 20.71% | 20.77% | 20.62% | 20.54% | 20.78% | 20.60% | 20.61% | 20.70% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2016 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2016
+ Operating incomeQ4 2015
+ Operating incomeQ3 2015
+ Operating incomeQ2 2015)
÷ (RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015
+ RevenueQ2 2015)
= 100 × (1,145 + 1,125 + 1,001 + 1,029)
÷ (6,191 + 6,072 + 5,922 + 5,926)
= 17.83%
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue figures demonstrate a consistent upward trajectory over the analyzed periods. Starting at approximately $5,134 million in the first quarter of 2012, revenue showed steady quarterly increases, reaching about $6,191 million by the first quarter of 2016. This suggests a sustained growth in the company's sales or service income over the four-year span.
- Operating Income Trends
- Operating income fluctuated within a relatively narrow range, beginning at $1,042 million in early 2012 and showing some variability across quarters. It peaked within the analyzed timeframe near $1,187 million in mid-2013 and generally hovered around the $1,000 million mark thereafter. Despite minor fluctuations, the operating income did not exhibit a clear overall upward or downward trend, indicating some consistency in profitability before operational expenses.
- Operating Profit Margin Patterns
- The operating profit margin exhibited a gradual decline over the period. Initially near 20.7% in early 2012, the margin decreased steadily to roughly 17.8% by the first quarter of 2016. This decreasing margin trend suggests that although revenue increased, the operating income did not keep pace proportionally, potentially reflecting rising costs or pressure on pricing leading to diminished operational efficiency.
- Overall Financial Performance Insights
- The combination of rising revenue and relatively stable operating income, paired with a declining operating margin, indicates that while the company expanded its top-line revenues, the cost structure or expense base may have increased at a higher rate. This could point to challenges in cost management or competitive pressures impacting profitability ratios. The steadiness of operating income alongside revenue growth implies that increased sales did not translate fully into higher operating earnings.
Net Profit Margin
Time Warner Cable Inc., net profit margin calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to TWC shareholders | 494) | 486) | 437) | 463) | 458) | 554) | 499) | 499) | 479) | 540) | 532) | 481) | 401) | 513) | 808) | 452) | 382) | ||||||
| Revenue | 6,191) | 6,072) | 5,922) | 5,926) | 5,777) | 5,790) | 5,714) | 5,726) | 5,582) | 5,577) | 5,518) | 5,550) | 5,475) | 5,485) | 5,363) | 5,404) | 5,134) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 7.80% | 7.78% | 8.17% | 8.51% | 8.74% | 8.90% | 8.93% | 9.15% | 9.14% | 8.83% | 8.75% | 10.07% | 10.01% | 10.08% | 10.56% | 8.58% | 8.62% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2016 Calculation
Net profit margin = 100
× (Net income attributable to TWC shareholdersQ1 2016
+ Net income attributable to TWC shareholdersQ4 2015
+ Net income attributable to TWC shareholdersQ3 2015
+ Net income attributable to TWC shareholdersQ2 2015)
÷ (RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015
+ RevenueQ2 2015)
= 100 × (494 + 486 + 437 + 463)
÷ (6,191 + 6,072 + 5,922 + 5,926)
= 7.80%
2 Click competitor name to see calculations.
The financial performance over the examined periods reveals several notable trends in profitability and revenue generation. Net income attributable to shareholders demonstrates variability but remains within a generally stable range, with some fluctuations evident across quarters. Starting from 382 million USD in the first quarter of 2012, net income shows a peak in the third quarter of 2012 at 808 million USD, followed by a decline and then moderate recovery in subsequent quarters. The values stabilize around the mid-400 to 500 million USD mark in the later years, indicating consistent earnings capacity toward the end of the observed timeframe.
Revenue exhibits a steady upward trend over the quarters, reflecting growth in the company’s top-line performance. Beginning at approximately 5.1 billion USD in the first quarter of 2012, revenue increases gradually and reaches over 6.1 billion USD by the first quarter of 2016. This progressive increase suggests expansion or improved sales performance throughout the period, with no significant downward deviations.
The net profit margin, however, shows a subtle declining trajectory despite stable net income and increasing revenue. Initially positioned above 8.6% in early 2012, it climbs to around 10% in the middle of 2012 and early 2013, indicating a period of improved profitability relative to revenue. Subsequently, there is a gradual decrease in margin percentage, falling below 8% by the end of 2015 and early 2016. This diminishing margin points to rising costs or expenses relative to revenue gains, which may impact overall profitability despite revenue growth.
- Net Income
- Fluctuates with a peak in late 2012, stabilizing around 450-500 million USD thereafter.
- Revenue
- Consistently increases over the period, growing from roughly 5.1 billion USD to over 6.1 billion USD.
- Net Profit Margin
- Peaks near 10% in early 2012-2013 but trends downward to approximately 7.8% by early 2016, indicating reduced efficiency in profit generation relative to revenue.
Overall, the data suggests that while revenue growth and absolute net income levels are maintained or improved, the profitability efficiency, as measured by net profit margin, is decreasing. This emphasizes a potential need to manage costs or improve operational efficiencies to sustain profit margins alongside increasing revenues.
Return on Equity (ROE)
Time Warner Cable Inc., ROE calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to TWC shareholders | 494) | 486) | 437) | 463) | 458) | 554) | 499) | 499) | 479) | 540) | 532) | 481) | 401) | 513) | 808) | 452) | 382) | ||||||
| Total TWC shareholders’ equity | 9,357) | 8,995) | 8,745) | 8,508) | 8,140) | 8,013) | 7,905) | 7,410) | 7,094) | 6,943) | 6,662) | 6,708) | 6,938) | 7,279) | 7,609) | 7,357) | 7,518) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 20.09% | 20.50% | 21.86% | 23.20% | 24.69% | 25.35% | 25.52% | 27.67% | 28.64% | 28.14% | 28.93% | 32.84% | 31.33% | 29.61% | 28.99% | 23.84% | 22.91% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2016 Calculation
ROE = 100
× (Net income attributable to TWC shareholdersQ1 2016
+ Net income attributable to TWC shareholdersQ4 2015
+ Net income attributable to TWC shareholdersQ3 2015
+ Net income attributable to TWC shareholdersQ2 2015)
÷ Total TWC shareholders’ equity
= 100 × (494 + 486 + 437 + 463)
÷ 9,357 = 20.09%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in profitability, equity, and return on equity (ROE) over the examined periods.
- Net Income
- Net income attributable to shareholders demonstrated fluctuations throughout the periods. Starting at 382 million USD in March 2012, it showed an overall increasing trend in 2012 with a peak of 808 million USD in September 2012. However, after this peak, net income experienced a general decline and varied modestly in subsequent quarters. Notable fluctuations were observed in 2014 and 2015, with net income ranging between 437 million USD and 554 million USD, before moderately rising again to 494 million USD by March 2016. This pattern suggests periods of volatile earnings with no consistent upward or downward trend in the more recent quarters.
- Total Shareholders' Equity
- Total shareholders' equity showed a decreasing trend during 2012 and early 2013, dropping from 7,518 million USD to a low of 6,662 million USD in September 2013. From this point onward, equity steadily increased over time, reaching 9,357 million USD by March 2016. This upward trend in equity indicates growth in the company’s net assets, reflecting either retained earnings accumulation, capital infusions, or other equity-enhancing activities during this period.
- Return on Equity (ROE)
- Return on equity started at a high level of 22.91% in March 2012, increasing to a peak of 32.84% by June 2013, corresponding closely with the periods of strong net income performance. After reaching this peak, ROE exhibited a consistent decline, falling to 20.09% by March 2016. The steady reduction in ROE suggests decreasing efficiency in generating profit from shareholders' equity despite an overall increase in equity. This may suggest that net income growth did not keep pace with the growth in equity.
In summary, the company experienced strong profitability in early periods which then stabilized at lower levels despite increasing shareholders' equity. The decline in ROE over time reflects a reduction in the effectiveness of equity utilization to produce net income. The growing equity base alongside relatively stable net income points to a more conservative or capital-intensive phase in the company’s financial profile.
Return on Assets (ROA)
Time Warner Cable Inc., ROA calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to TWC shareholders | 494) | 486) | 437) | 463) | 458) | 554) | 499) | 499) | 479) | 540) | 532) | 481) | 401) | 513) | 808) | 452) | 382) | ||||||
| Total assets | 49,751) | 49,277) | 48,721) | 48,886) | 48,330) | 48,501) | 48,636) | 48,456) | 49,153) | 48,273) | 47,431) | 49,228) | 49,299) | 49,809) | 50,085) | 49,937) | 49,296) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 3.78% | 3.74% | 3.92% | 4.04% | 4.16% | 4.19% | 4.15% | 4.23% | 4.13% | 4.05% | 4.06% | 4.48% | 4.41% | 4.33% | 4.40% | 3.51% | 3.49% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2016 Calculation
ROA = 100
× (Net income attributable to TWC shareholdersQ1 2016
+ Net income attributable to TWC shareholdersQ4 2015
+ Net income attributable to TWC shareholdersQ3 2015
+ Net income attributable to TWC shareholdersQ2 2015)
÷ Total assets
= 100 × (494 + 486 + 437 + 463)
÷ 49,751 = 3.78%
2 Click competitor name to see calculations.
- Net Income Attributable to TWC Shareholders
- The net income demonstrated variability across the observed period, with fluctuations each quarter. The highest net income was registered in the third quarter of 2012 and the fourth quarter of 2014, peaking at 808 million and 554 million US dollars respectively. The net income showed a generally stable performance from 2013 through the first quarter of 2016, mainly oscillating between 400 and 540 million US dollars, indicating moderate consistency with some seasonal or periodic variation.
- Total Assets
- Total assets displayed minor fluctuations but remained relatively stable, maintaining a range approximately between 47,000 and 50,000 million US dollars. The asset base saw a slight decline from early 2012 to the third quarter of 2013, followed by partial recovery toward the end of 2015 and early 2016. This stability reflects a consistent asset level over the five-year horizon without significant asset growth or depletion trends.
- Return on Assets (ROA)
- ROA values generally ranged between 3.49% and 4.48%. The highest ROA occurred around mid-2013, coinciding with the period of relatively elevated net income. From early 2014 onward, a gradual decline in ROA is observable, descending from around 4.2% to below 3.8% by early 2016. This suggests a diminishing efficiency in generating profit from total assets over time despite stable asset levels, highlighting potential challenges in profitability or asset utilization efficiency in later periods.
- Overall Trends and Insights
- The company maintained steady asset values with moderate net income levels, but the declining ROA trend raises concerns about profitability dynamics relative to asset base. The fluctuations in net income, especially in earlier years, appeared more pronounced, yet the overall income level stabilized in subsequent years. The disparity between stable assets and decreasing ROA suggests that income generation has not kept pace with asset investments or held steady assets, which warrants further examination into operational efficiency or external factors impacting profitability.