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.
The analysis of the Price to Operating Profit (P/OP) ratio reveals a period of extreme volatility followed by a decade of relative stabilization. The metric reflects a significant shift in market valuation relative to operational performance during the late 2000s, with a subsequent recovery phase where share price growth closely tracked operating profit expansion.
- Share Price Volatility
- The share price experienced a severe decline, reaching a nadir of 22.05 US$ in 2009. Following this low, a consistent upward trajectory was observed, with the price peaking at 97.06 US$ in 2017 before slightly correcting to 94.37 US$ in 2018.
- Operating Profit per Share Trajectory
- Operational performance showed a marked recovery after a critical deficit of -13.34 US$ in 2009. From 2010 to 2018, operating profit per share grew steadily from 3.95 US$ to 10.16 US$, demonstrating a sustained improvement in core profitability over the latter half of the observed period.
- P/OP Ratio Dynamics
- The P/OP ratio began at a high of 17.26 in 2006 and contracted sharply to 6.59 by 2008. After the operational loss in 2009 rendered the ratio unavailable, the metric stabilized and generally fluctuated between 6.30 and 11.46. A secondary peak was observed in 2015 at 11.46, indicating a period where the market valuation grew faster than the underlying operating profit.
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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. | |
|---|---|---|---|---|---|
| Feb 22, 2018 | 9.29 | 28.74 | 10.98 | 27.76 | 147.26 |
| Feb 23, 2017 | 9.96 | 23.36 | 10.61 | 30.46 | 161.49 |
| Feb 25, 2016 | 7.67 | 24.29 | 9.07 | 49.89 | 132.14 |
| Feb 26, 2015 | 11.46 | 21.78 | 10.12 | 43.72 | 66.68 |
| Feb 26, 2014 | 8.74 | 28.56 | 10.62 | 56.90 | 105.97 |
| Feb 22, 2013 | 8.37 | 19.47 | 8.69 | 131.64 | 184.25 |
| Feb 24, 2012 | 6.30 | 15.73 | 7.53 | — | 18.26 |
| Feb 18, 2011 | 7.69 | 19.34 | 8.79 | — | 43.86 |
| Feb 19, 2010 | 7.45 | 20.40 | 6.35 | — | 18.16 |
| Feb 20, 2009 | — | 17.00 | 5.49 | — | 17.24 |
| Feb 22, 2008 | 6.59 | 32.64 | 10.88 | — | 21.14 |
| Feb 23, 2007 | 11.20 | 39.28 | 17.88 | — | 23.89 |
| Feb 27, 2006 | 17.26 | 49.92 | 15.37 | — | 466.86 |
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).