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
The financial performance from 2005 to 2017 is characterized by a period of extreme volatility during the late 2000s followed by a sustained recovery in asset utilization efficiency.
- Net Income Trends
- Earnings remained positive until 2008, when a substantial net loss of 13,402 million US$ was recorded. Following this decline, net income returned to positive territory in 2009 and exhibited a consistent growth trajectory, increasing from 2,468 million US$ in 2009 to a peak of 5,247 million US$ by 2017.
- Total Asset Dynamics
- A significant structural contraction of the asset base occurred between 2008 and 2009, with total assets decreasing from 113,896 million US$ to 65,730 million US$. After this period of reduction, the asset base remained relatively stable, fluctuating within a narrow range between 63,259 million US$ and 69,209 million US$ through the end of 2017.
- Return on Assets (ROA) Evolution
- The ROA experienced a severe drop to -11.77% in 2008, directly correlating with the significant net loss for that period. From 2009 onward, a steady and uninterrupted upward trend is observed, with the ROA rising from 3.75% in 2009 to 7.58% in 2017. This progression indicates a significant improvement in operational efficiency and profitability relative to the company's total investments.
The overall trend demonstrates that the recovery in ROA was driven by a combination of increasing net income and a leaner, stabilized asset base, resulting in the highest return on assets for the analyzed period being achieved in 2017.
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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. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2017 | 7.58% | 6.42% | 12.15% | 18.85% | 2.94% | 9.37% |
| Dec 31, 2016 | 5.95% | 11.63% | 4.82% | 15.73% | 1.37% | 10.20% |
| Dec 31, 2015 | 6.00% | 11.09% | 4.90% | 7.46% | 1.20% | 9.51% |
| Dec 31, 2014 | 6.05% | 11.01% | 5.26% | 7.32% | 3.78% | 8.91% |
| Dec 31, 2013 | 5.43% | 11.65% | 4.29% | 8.38% | 2.08% | 7.55% |
| Dec 31, 2012 | 4.42% | 11.45% | 3.76% | 0.35% | 0.43% | 7.59% |
| Dec 31, 2011 | 4.26% | 13.42% | 2.64% | — | 7.37% | 6.66% |
| Dec 31, 2010 | 3.88% | 14.70% | 3.07% | — | 16.38% | 5.73% |
| Dec 31, 2009 | 3.75% | 16.10% | 3.23% | — | 17.04% | 5.24% |
| Dec 31, 2008 | -11.77% | 13.31% | 2.25% | — | 13.44% | 7.08% |
| Dec 31, 2007 | 3.28% | 16.59% | 2.28% | — | 10.35% | 7.69% |
| Dec 31, 2006 | 4.98% | 16.66% | 2.29% | — | 8.06% | 5.62% |
| Dec 31, 2005 | 2.37% | 14.27% | 0.90% | — | 11.52% | 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% | 10.43% |
| Dec 31, 2016 | 5.95% | 9.25% |
| Dec 31, 2015 | 6.00% | 7.95% |
| Dec 31, 2014 | 6.05% | 7.95% |
| Dec 31, 2013 | 5.43% | 7.34% |
| Dec 31, 2012 | 4.42% | 6.43% |
| Dec 31, 2011 | 4.26% | 6.19% |
| Dec 31, 2010 | 3.88% | 6.60% |
| Dec 31, 2009 | 3.75% | 6.26% |
| Dec 31, 2008 | -11.77% | 5.43% |
| Dec 31, 2007 | 3.28% | 5.76% |
| Dec 31, 2006 | 4.98% | 4.77% |
| 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% | 9.22% |
| Dec 31, 2016 | 5.95% | 6.13% |
| Dec 31, 2015 | 6.00% | 5.86% |
| Dec 31, 2014 | 6.05% | 4.94% |
| Dec 31, 2013 | 5.43% | 5.87% |
| Dec 31, 2012 | 4.42% | 3.63% |
| Dec 31, 2011 | 4.26% | 3.13% |
| Dec 31, 2010 | 3.88% | 5.26% |
| Dec 31, 2009 | 3.75% | 4.17% |
| Dec 31, 2008 | -11.77% | 4.53% |
| Dec 31, 2007 | 3.28% | 4.38% |
| Dec 31, 2006 | 4.98% | 3.48% |
| 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).