Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Time Warner Inc., ROIC calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 5,040) | 4,943) | 4,751) | 5,167) | 5,150) | |
| Invested capital2 | 57,150) | 54,961) | 53,163) | 52,455) | 56,262) | |
| Performance Ratio | ||||||
| ROIC3 | 8.82% | 8.99% | 8.94% | 9.85% | 9.15% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2017 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 5,040 ÷ 57,150 = 8.82%
4 Click competitor name to see calculations.
Decomposition of ROIC
Time Warner Inc., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
Operating Profit Margin (OPM)
Time Warner Inc., OPM calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 5,040) | 4,943) | 4,751) | 5,167) | 5,150) | |
| Add: Cash operating taxes2 | 2,078) | 1,465) | 1,757) | 1,048) | 1,442) | |
| Net operating profit before taxes (NOPBT) | 7,118) | 6,409) | 6,508) | 6,216) | 6,591) | |
| Revenues | 31,271) | 29,318) | 28,118) | 27,359) | 29,795) | |
| Add: Increase (decrease) in deferred revenue | 129) | 82) | 74) | 1) | (57) | |
| Adjusted revenues | 31,400) | 29,400) | 28,192) | 27,360) | 29,738) | |
| Profitability Ratio | ||||||
| OPM3 | 22.67% | 21.80% | 23.08% | 22.72% | 22.16% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2017 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × 7,118 ÷ 31,400 = 22.67%
4 Click competitor name to see calculations.
Turnover of Capital (TO)
Time Warner Inc., TO calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 31,271) | 29,318) | 28,118) | 27,359) | 29,795) | |
| Add: Increase (decrease) in deferred revenue | 129) | 82) | 74) | 1) | (57) | |
| Adjusted revenues | 31,400) | 29,400) | 28,192) | 27,360) | 29,738) | |
| Invested capital1 | 57,150) | 54,961) | 53,163) | 52,455) | 56,262) | |
| Efficiency Ratio | ||||||
| TO2 | 0.55 | 0.53 | 0.53 | 0.52 | 0.53 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 Invested capital. See details »
2 2017 Calculation
TO = Adjusted revenues ÷ Invested capital
= 31,400 ÷ 57,150 = 0.55
3 Click competitor name to see calculations.
Effective Cash Tax Rate (CTR)
Time Warner Inc., CTR calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 5,040) | 4,943) | 4,751) | 5,167) | 5,150) | |
| Add: Cash operating taxes2 | 2,078) | 1,465) | 1,757) | 1,048) | 1,442) | |
| Net operating profit before taxes (NOPBT) | 7,118) | 6,409) | 6,508) | 6,216) | 6,591) | |
| Tax Rate | ||||||
| CTR3 | 29.20% | 22.86% | 27.00% | 16.87% | 21.87% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2017 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 2,078 ÷ 7,118 = 29.20%
4 Click competitor name to see calculations.