Return on Assets (ROA)
since 2005
Calculation
Time Warner Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Time Warner Inc. shareholders1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2017 | 7.58% | = | 100 | × | 5,247) | ÷ | 69,209) |
| Dec 31, 2016 | 5.95% | = | 100 | × | 3,926) | ÷ | 65,966) |
| Dec 31, 2015 | 6.00% | = | 100 | × | 3,833) | ÷ | 63,848) |
| Dec 31, 2014 | 6.05% | = | 100 | × | 3,827) | ÷ | 63,259) |
| Dec 31, 2013 | 5.43% | = | 100 | × | 3,691) | ÷ | 67,994) |
| Dec 31, 2012 | 4.42% | = | 100 | × | 3,019) | ÷ | 68,304) |
| Dec 31, 2011 | 4.26% | = | 100 | × | 2,886) | ÷ | 67,801) |
| Dec 31, 2010 | 3.88% | = | 100 | × | 2,578) | ÷ | 66,524) |
| Dec 31, 2009 | 3.75% | = | 100 | × | 2,468) | ÷ | 65,730) |
| Dec 31, 2008 | -11.77% | = | 100 | × | (13,402) | ÷ | 113,896) |
| Dec 31, 2007 | 3.28% | = | 100 | × | 4,387) | ÷ | 133,830) |
| Dec 31, 2006 | 4.98% | = | 100 | × | 6,552) | ÷ | 131,669) |
| Dec 31, 2005 | 2.37% | = | 100 | × | 2,905) | ÷ | 122,475) |
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
- Net Income (Loss) Attributable to Shareholders
- The net income exhibited significant volatility over the analyzed period. Starting with a positive value of $2,905 million in 2005, it peaked at $6,552 million in 2006 before declining in subsequent years with a notable loss of $13,402 million in 2008. Following this loss, the net income returned to positive territory, showing a gradual upward trend from 2009 through 2017, reaching $5,247 million by the end of the period. This indicates a recovery phase after the substantial loss, with steady improvements in profitability in later years.
- Total Assets
- Total assets initially increased from $122,475 million in 2005 to a peak of approximately $133,830 million in 2007. Thereafter, assets sharply declined to $65,730 million in 2009 and remained relatively flat with minor fluctuations through 2012. From 2013 onward, the asset base stabilized and exhibited a mild upward trajectory, concluding at $69,209 million in 2017. This pattern suggests a significant asset disposal or restructuring event around 2008-2009, followed by a conservative asset management approach in subsequent years.
- Return on Assets (ROA)
- ROA values mirror the volatility seen in net income, with a rise from 2.37% in 2005 to a peak at 4.98% in 2006, followed by a sharp drop to -11.77% in 2008, indicating negative asset profitability during that year. Post-2008, ROA rebounded and showed consistent improvement, moving from 3.75% in 2009 up to 7.58% in 2017. The gradual increase in ROA post-crisis implies enhanced efficiency in asset utilization and a stronger earnings performance relative to the asset base.
- Summary
- The financial data over the period indicates a company that experienced a severe downturn around 2008, characterized by a dramatic loss in net income, a significant reduction in total assets, and a negative return on assets. Subsequently, the company embarked on a recovery process with stabilized assets and a progressive increase in profitability metrics. The upward trend in net income and ROA after 2009 suggests effective management actions aimed at improving operational efficiency and profitability relative to the asset base.
Comparison to Competitors
Time Warner Inc., ROA, long-term trends, comparison to competitors
| Time Warner Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2017 | 7.58% | 6.42% | 12.15% | 18.85% | 2.94% | 2.14% | 9.37% |
| Dec 31, 2016 | 5.95% | 11.63% | 4.82% | 15.73% | 1.37% | -0.32% | 10.20% |
| Dec 31, 2015 | 6.00% | 11.09% | 4.90% | 7.46% | 1.20% | -12.53% | 9.51% |
| Dec 31, 2014 | 6.05% | 11.01% | 5.26% | 7.32% | 3.78% | 20.09% | 8.91% |
| Dec 31, 2013 | 5.43% | 11.65% | 4.29% | 8.38% | 2.08% | -2.31% | 7.55% |
| Dec 31, 2012 | 4.42% | 11.45% | 3.76% | 0.35% | 0.43% | -9.47% | 7.59% |
| Dec 31, 2011 | 4.26% | 13.42% | 2.64% | — | 7.37% | 4.99% | 6.66% |
| Dec 31, 2010 | 3.88% | 14.70% | 3.07% | — | 16.38% | -14.65% | 5.73% |
| Dec 31, 2009 | 3.75% | 16.10% | 3.23% | — | 17.04% | -13.68% | 5.24% |
| Dec 31, 2008 | -11.77% | 13.31% | 2.25% | — | 13.44% | 8.96% | 7.08% |
| Dec 31, 2007 | 3.28% | 16.59% | 2.28% | — | 10.35% | -16.65% | 7.69% |
| Dec 31, 2006 | 4.98% | 16.66% | 2.29% | — | 8.06% | -21.28% | 5.62% |
| Dec 31, 2005 | 2.37% | 14.27% | 0.90% | — | 11.52% | 4.02% | 4.77% |
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).
Comparison to Sector (Media & Entertainment)
Time Warner Inc., ROA, long-term trends, comparison to sector (media & entertainment)
| Time Warner Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2017 | 7.58% | 10.38% |
| Dec 31, 2016 | 5.95% | 9.20% |
| Dec 31, 2015 | 6.00% | 7.85% |
| Dec 31, 2014 | 6.05% | 8.00% |
| Dec 31, 2013 | 5.43% | 7.31% |
| Dec 31, 2012 | 4.42% | 6.38% |
| Dec 31, 2011 | 4.26% | 6.19% |
| Dec 31, 2010 | 3.88% | 6.52% |
| Dec 31, 2009 | 3.75% | 6.17% |
| Dec 31, 2008 | -11.77% | 5.45% |
| Dec 31, 2007 | 3.28% | 5.67% |
| Dec 31, 2006 | 4.98% | 4.65% |
| Dec 31, 2005 | 2.37% | 2.98% |
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).
Comparison to Industry (Communication Services)
Time Warner Inc., ROA, long-term trends, comparison to industry (communication services)
| Time Warner Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2017 | 7.58% | 9.20% |
| Dec 31, 2016 | 5.95% | 6.11% |
| Dec 31, 2015 | 6.00% | 5.83% |
| Dec 31, 2014 | 6.05% | 4.97% |
| Dec 31, 2013 | 5.43% | 5.86% |
| Dec 31, 2012 | 4.42% | 3.61% |
| Dec 31, 2011 | 4.26% | 3.14% |
| Dec 31, 2010 | 3.88% | 5.24% |
| Dec 31, 2009 | 3.75% | 4.15% |
| Dec 31, 2008 | -11.77% | 4.53% |
| Dec 31, 2007 | 3.28% | 4.35% |
| Dec 31, 2006 | 4.98% | 3.45% |
| Dec 31, 2005 | 2.37% | 3.57% |
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).