Operating Profit Margin
since 2005
Calculation
Time Warner Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2017 | 25.33% | = | 100 | × | 7,920) | ÷ | 31,271) |
| Dec 31, 2016 | 25.74% | = | 100 | × | 7,547) | ÷ | 29,318) |
| Dec 31, 2015 | 24.41% | = | 100 | × | 6,865) | ÷ | 28,118) |
| Dec 31, 2014 | 21.84% | = | 100 | × | 5,975) | ÷ | 27,359) |
| Dec 31, 2013 | 22.17% | = | 100 | × | 6,605) | ÷ | 29,795) |
| Dec 31, 2012 | 20.60% | = | 100 | × | 5,918) | ÷ | 28,729) |
| Dec 31, 2011 | 20.04% | = | 100 | × | 5,805) | ÷ | 28,974) |
| Dec 31, 2010 | 20.19% | = | 100 | × | 5,428) | ÷ | 26,888) |
| Dec 31, 2009 | 17.63% | = | 100 | × | 4,545) | ÷ | 25,785) |
| Dec 31, 2008 | -33.96% | = | 100 | × | (15,957) | ÷ | 46,984) |
| Dec 31, 2007 | 19.25% | = | 100 | × | 8,949) | ÷ | 46,482) |
| Dec 31, 2006 | 16.65% | = | 100 | × | 7,362) | ÷ | 44,224) |
| Dec 31, 2005 | 10.35% | = | 100 | × | 4,519) | ÷ | 43,652) |
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), 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), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of operating profit margins reveals a trajectory of general expansion, characterized by an initial growth phase, a significant period of volatility, and a subsequent long-term trend of efficiency gains.
- Initial Growth Phase (2005–2007)
- A steady increase in operational efficiency is observed from 2005 to 2007, with the operating profit margin rising from 10.35% to 19.25%. This trend was supported by a gradual increase in revenues, which grew from $43.65 billion to $46.48 billion over the same period.
- 2008 Volatility and Structural Adjustment
- A severe contraction occurred in 2008, during which operating income fell to a loss of $15.96 billion, resulting in an operating profit margin of -33.96%. While revenues remained stable at $46.98 billion in 2008, a substantial decrease in revenues to $25.79 billion is noted in 2009. This suggests a major structural reorganization or the divestiture of significant business segments. Following this shift, the operating profit margin recovered quickly to 17.63% by the end of 2009.
- Sustained Margin Expansion (2010–2017)
- From 2010 through 2017, a consistent upward trend in profitability is evident. The operating profit margin climbed from 20.19% in 2010 to a peak of 25.74% in 2016, ending the period at 25.33% in 2017. During this timeframe, revenues stabilized and fluctuated within a narrower range between $27.36 billion and $31.27 billion. The divergence between relatively flat revenue growth and steadily increasing margins indicates that the improvement in profitability was driven primarily by operational optimizations and cost management.
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Comparison to Competitors
Time Warner Inc., operating profit margin, long-term trends, comparison to competitors
| Time Warner Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2017 | 25.33% | 23.59% | 21.28% | 49.70% | 7.17% |
| Dec 31, 2016 | 25.74% | 26.27% | 20.97% | 44.96% | 4.30% |
| Dec 31, 2015 | 24.41% | 25.82% | 21.47% | 34.72% | 4.51% |
| Dec 31, 2014 | 21.84% | 24.99% | 21.67% | 40.06% | 7.31% |
| Dec 31, 2013 | 22.17% | 23.34% | 20.98% | 35.62% | 5.22% |
| Dec 31, 2012 | 20.60% | 25.43% | 19.46% | 10.57% | 1.39% |
| Dec 31, 2011 | 20.04% | 30.98% | 19.20% | — | 11.74% |
| Dec 31, 2010 | 20.19% | 35.40% | 21.03% | — | 13.12% |
| Dec 31, 2009 | 17.63% | 35.15% | 20.18% | — | 11.49% |
| Dec 31, 2008 | -33.96% | 30.43% | 19.65% | — | 8.90% |
| Dec 31, 2007 | 19.25% | 30.64% | 18.05% | — | 7.56% |
| Dec 31, 2006 | 16.65% | 33.48% | 18.50% | — | 6.46% |
| Dec 31, 2005 | 10.35% | 32.86% | 16.58% | — | 0.44% |
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), 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), 10-K (reporting date: 2005-12-31).