Stock Analysis on Net
Stock Analysis on Net

Time Warner Inc. (NYSE:TWX)

This company has been moved to the archive! The financial data has not been updated since April 26, 2018.

Common-Size Income Statement 

Time Warner Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Revenues 100.00 100.00 100.00 100.00 100.00
Costs of revenues -56.43 -55.86 -57.45 -58.02 -54.47
Gross profit 43.57% 44.14% 42.55% 41.98% 45.53%
Selling, general and administrative -17.39 -17.47 -17.16 -18.97 -21.70
Amortization of intangible assets -0.63 -0.65 -0.67 -0.74 -0.84
Restructuring and severance costs -0.38 -0.40 -0.21 -1.87 -0.83
Asset impairments -0.05 -0.15 -0.09 -0.25 -0.47
Gain (loss) on operating assets, net 0.21 0.27 0.00 1.70 0.48
Operating income 25.33% 25.74% 24.41% 21.84% 22.17%
Interest income 0.67 0.77 0.78 0.67 0.31
Interest expense -3.88 -4.73 -4.92 -4.95 -4.31
Interest expense, net -3.21% -3.96% -4.14% -4.27% -3.99%
Investment gains (losses), net 0.96 0.50 -0.11 0.11 0.20
Loss on equity method investees -0.49 -0.97 -0.44 -0.56 -0.51
Premiums paid and costs incurred on debt redemption -3.48 -3.44 -0.26 0.00 0.00
Other -0.10 -0.16 -0.11 -0.01 -0.07
Other loss, net -3.10% -4.06% -0.91% -0.46% -0.38%
Income from continuing operations before income taxes 19.01% 17.72% 19.37% 17.10% 17.80%
Income tax provision -2.24 -4.37 -5.87 -2.87 -5.87
Income from continuing operations 16.77% 13.35% 13.50% 14.23% 11.93%
Discontinued operations, net of tax 0.00 0.04 0.13 -0.24 0.46
Net income 16.77% 13.39% 13.63% 13.99% 12.39%
Net loss attributable to noncontrolling interests 0.01 0.00 0.00 0.00 0.00
Net income attributable to Time Warner Inc. shareholders 16.78% 13.39% 13.63% 13.99% 12.39%

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

Revenue and Cost Trends
Revenues remained constant at 100% across all periods, providing a steady baseline for comparative expense and profit analysis. The cost of revenues fluctuated, increasing from -54.47% in 2013 to a peak of approximately -58.02% in 2014, then stabilizing around mid-to-high 50% range through 2017. This variability indicates some volatility in direct costs relative to revenue, though the overall trend suggests a slight increase followed by stabilization.
Gross Profit
Gross profit as a percentage of revenues declined from 45.53% in 2013 to a low of 41.98% in 2014, then gradually rose to near initial levels by 2017, ending at 43.57%. This trend corresponds inversely with the cost of revenues pattern, reflecting improved efficiency or pricing after the 2014 dip.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses showed a consistent downward trend relative to revenues, decreasing from -21.7% in 2013 to approximately -17.39% in 2017. This suggests improved cost control or operational efficiencies in administrative and selling functions over the period.
Amortization and Restructuring Costs
Amortization of intangible assets steadily decreased slightly, from -0.84% to -0.63%, indicating either reduced amortizable assets or improved asset management. Restructuring and severance costs were somewhat variable, peaking at -1.87% in 2014 but remaining below 0.5% for most years, implying episodic restructuring events without sustained cost burden.
Asset Impairments and Net Gains/Losses on Operating Assets
Asset impairments diminished significantly from -0.47% to -0.05% from 2013 to 2017, showing fewer write-downs. Gains on operating assets were positive in most years, with a notable spike of 1.7% in 2014, contributing positively to income variability.
Operating Income
Operating income remained robust, hovering around low to mid-20% relative to revenues. It slightly declined from 22.17% in 2013 to 21.84% in 2014, then increased to a peak of 25.74% by 2016 before a minor drop to 25.33% in 2017, reflecting overall operational strength and margin improvements.
Interest and Investment Income/Expense
Interest income experienced moderate growth early on, peaking at 0.78% in 2015, then slightly declined to 0.67% in 2017. Interest expense showed a decreasing trend from -4.31% in 2013 to -3.88% in 2017, contributing to net interest expense improvement from -3.99% to -3.21%. Investment gains were minor but positive for most years except 2015, indicating modest fluctuations in investment performance.
Losses and Debt Redemption Costs
Loss on equity method investees was volatile but generally decreased from -0.56% to -0.49%, while premiums paid and costs on debt redemption appeared only from 2015, increasing sharply to around -3.48% in 2017, implying significant debt restructuring or retirement activities during latter years. Other losses increased notably in 2016 to -4.06%, compared to previous years, possibly indicating unusual or nonrecurring expenses.
Pre-Tax and Net Income
Income before taxes fluctuated between 17.1% and 19.37%, with no definitive trend but remaining stable overall. The income tax provision, however, showed marked variability, ranging from as high as -5.87% in 2013 and 2015 to as low as -2.24% in 2017, indicating changes in tax environment or strategy. Income from continuing operations improved from 11.93% in 2013 to 16.77% in 2017. Consequently, net income followed a similar pattern, rising from around 12.39% to 16.77% from 2013 to 2017.
Net Income Attributable to Shareholders
The net income attributable to shareholders mirrored the overall net income trend, increasing from 12.39% in 2013 to 16.78% in 2017, suggesting enhanced profitability and return to equity holders over the period.