Price to Operating Profit (P/OP)
since 2005
Calculation
Time Warner Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2018 | 9.29 | = | 94.37 | ÷ | 10.16 | 10.16 | = | 7,920 | ÷ | 779,851,623 | |
| Feb 23, 2017 | 9.96 | = | 97.06 | ÷ | 9.75 | 9.75 | = | 7,547 | ÷ | 774,334,281 | |
| Feb 25, 2016 | 7.67 | = | 66.66 | ÷ | 8.69 | 8.69 | = | 6,865 | ÷ | 790,154,346 | |
| Feb 26, 2015 | 11.46 | = | 82.42 | ÷ | 7.19 | 7.19 | = | 5,975 | ÷ | 830,521,982 | |
| Feb 26, 2014 | 8.74 | = | 64.69 | ÷ | 7.40 | 7.40 | = | 6,605 | ÷ | 892,661,216 | |
| Feb 22, 2013 | 8.37 | = | 52.99 | ÷ | 6.33 | 6.33 | = | 5,918 | ÷ | 934,790,459 | |
| Feb 24, 2012 | 6.30 | = | 37.69 | ÷ | 5.99 | 5.99 | = | 5,805 | ÷ | 969,638,079 | |
| Feb 18, 2011 | 7.69 | = | 38.18 | ÷ | 4.97 | 4.97 | = | 5,428 | ÷ | 1,092,833,062 | |
| Feb 19, 2010 | 7.45 | = | 29.44 | ÷ | 3.95 | 3.95 | = | 4,545 | ÷ | 1,150,231,940 | |
| Feb 20, 2009 | — | = | 22.05 | ÷ | -13.34 | -13.34 | = | -15,957 | ÷ | 1,195,931,882 | |
| Feb 22, 2008 | 6.59 | = | 49.47 | ÷ | 7.51 | 7.51 | = | 8,949 | ÷ | 1,192,107,190 | |
| Feb 23, 2007 | 11.20 | = | 64.50 | ÷ | 5.76 | 5.76 | = | 7,362 | ÷ | 1,278,118,873 | |
| Feb 27, 2006 | 17.26 | = | 51.93 | ÷ | 3.01 | 3.01 | = | 4,519 | ÷ | 1,501,766,104 |
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$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Time Warner Inc. Annual Report.
- Share Price
- The share price exhibits significant volatility over the period analyzed. Starting at $51.93 in early 2006, the price increased to a peak of $64.50 in 2007 before sharply declining to a low of $22.05 in 2009. After this substantial drop, the share price recovered steadily, reaching a high of $97.06 in 2017, before a slight decrease to $94.37 in 2018. This trend shows a marked recovery following a pronounced downturn around 2009, likely reflecting broader market conditions or company-specific challenges during that period.
- Operating Profit per Share
- Operating profit per share demonstrates a generally positive growth trend with some volatility. It increased from $3.01 in 2006 to a peak of $7.51 in 2008, followed by a sharp negative dip to -$13.34 in 2009, indicating a severe operating loss that year. Subsequently, there is a strong recovery with a consistent upward trajectory, reaching $10.16 in 2018. This suggests improved operational efficiency or profitability post-2009.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio shows fluctuations that correspond to share price and operating profit changes. Initially, the ratio decreases from 17.26 in 2006 to 6.59 in 2008, signaling increasing operating profit relative to share price or a decline in market valuation per unit of operating profit. The ratio is missing for 2009, likely due to the negative operating profit making the ratio non-meaningful. From 2010 onwards, the ratio generally remains between approximately 6.3 and 11.46, indicating some variability in market valuation relative to operating profit. Notably, there are peaks in 2010 (7.45), 2013 (8.37), 2014 (8.74), and a higher peak in 2015 (11.46), followed by a decrease and stabilization around 9.3 in 2018. This suggests fluctuating investor confidence or varying market expectations regarding the company’s operating profitability.
Comparison to Competitors
Time Warner Inc., P/OP, long-term trends, comparison to competitors
| Time Warner Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | |
|---|---|---|---|---|---|---|
| Feb 22, 2018 | 9.29 | 28.74 | 10.98 | 27.76 | 147.25 | 88.40 |
| Feb 23, 2017 | 9.96 | 23.36 | 10.61 | 30.46 | 161.44 | — |
| Feb 25, 2016 | 7.67 | 24.29 | 9.07 | 49.89 | 132.15 | — |
| Feb 26, 2015 | 11.46 | 21.78 | 10.12 | 43.72 | 66.68 | 4.53 |
| Feb 26, 2014 | 8.74 | 28.56 | 10.62 | 56.90 | 105.92 | 290.04 |
| Feb 22, 2013 | 8.37 | 19.47 | 8.69 | 131.64 | 184.56 | — |
| Feb 24, 2012 | 6.30 | 15.73 | 7.53 | — | 18.26 | 18.67 |
| Feb 18, 2011 | 7.69 | 19.34 | 8.79 | — | 43.91 | — |
| Feb 19, 2010 | 7.45 | 20.40 | 6.35 | — | 18.20 | — |
| Feb 20, 2009 | — | 17.00 | 5.49 | — | 17.28 | 5.65 |
| Feb 22, 2008 | 6.59 | 32.64 | 10.88 | — | 21.19 | — |
| Feb 23, 2007 | 11.20 | 39.28 | 17.88 | — | 24.04 | — |
| Feb 27, 2006 | 17.26 | 49.92 | 15.37 | — | 472.05 | 28.34 |
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).