Time Warner Inc. (NYSE:TWX)

The analyzed financial data reveals several observable trends over the five-year period ending December 31, 2017. These trends relate to asset utilization, liquidity, leverage, profitability, and returns, considering both reported and adjusted figures.

Asset Turnover

The reported total asset turnover ratio remained relatively stable, fluctuating narrowly between 0.43 and 0.45, indicating consistent efficiency in using assets to generate revenue. Adjusted ratios closely follow this pattern, showing marginal improvement from 0.43 to 0.45 over the period.

Liquidity Ratios

Reported current ratios demonstrate a declining trend, dropping from 1.53 in 2013 to 1.08 in 2017, which could suggest decreasing short-term liquidity or increasing current liabilities relative to current assets. Adjusted current ratios showed a similar decline from 1.75 to 1.16, confirming a noteworthy reduction in liquidity buffers over time.

Leverage Ratios

Reported debt to equity increased from 0.67 in 2013 to a peak of 1.01 in 2015 and 2016 before slightly falling to 0.84 in 2017, indicating increased reliance on debt financing initially, followed by moderate deleveraging. Adjusted debt to equity ratios show the same pattern with a peak at 0.91 and a subsequent decline to 0.79. Debt to capital ratios also reflect similar movements, increasing from roughly 0.4 to around 0.5 before declining towards 0.44 by 2017. Financial leverage ratios rose from 2.27 to 2.71 by 2016 but decreased to 2.44 in 2017, signaling an increase in use of debt relative to equity initially, later reduced.

Profitability Margins

Reported net profit margin displayed a positive trend, rising from 12.39% in 2013 to a peak of 16.78% in 2017, suggesting improved profitability. However, adjusted net profit margins experienced fluctuations, peaking at 14.96% in 2013, declining to 12.99% in 2015, and showing recovery to around 14.11% in 2017. The divergence between reported and adjusted margins highlights possible variations in one-time items or accounting changes affecting the figures.

Return on Equity (ROE)

Reported ROE consistently increased from 12.34% in 2013 to 18.49% in 2017, evidencing stronger profitability from shareholders' perspective. Adjusted ROE increased initially but showed a slight decline starting mid-period, ending at 14.1% in 2017, indicating adjusted performance was more modest.

Return on Assets (ROA)

Reported ROA grew from 5.43% in 2013 to 7.58% in 2017, denoting greater efficiency in utilizing assets to generate profits. Adjusted ROA fluctuated around the 6% mark, showing a mild increase towards the end of the period but remaining less pronounced compared to reported figures.

In summary, the data indicates consistent asset use efficiency with improving profitability and return ratios on a reported basis. Liquidity ratios decreased noticeably, potentially implying a tighter short-term financial position. Leverage ratios reveal an initial increase in debt reliance, followed by moderate reduction, which may have contributed to improved returns on equity. Differences between reported and adjusted figures underscore the importance of considering non-operational effects when evaluating financial health.

Revenue Trends

Revenues demonstrated a fluctuating yet generally upward trend over the five-year period. After an initial decline from approximately 29,795 million USD in 2013 to 27,359 million USD in 2014, revenues gradually increased in subsequent years, reaching 31,271 million USD by the end of 2017. This shows a recovery and growth stage following the dip in 2014.

Total Assets Movement

Total assets followed a similar pattern of decline and subsequent growth. Assets decreased from about 67,994 million USD in 2013 to 63,259 million USD in 2014, then remained relatively stable with a slight upward trajectory, ending at approximately 69,209 million USD in 2017. The downward movement in 2014, followed by stabilization and growth, indicates possible restructuring or asset reallocation during the early period.

Reported Total Asset Turnover Ratio

The reported total asset turnover ratio remained relatively stable across the five years, hovering around 0.43 to 0.45. There was a slight dip from 0.44 in 2013 to 0.43 in 2014, after which the ratio maintained or slightly increased, reaching 0.45 by 2017. This stability suggests consistent efficiency in generating revenues from the asset base, with minor improvements toward the end of the period.

Adjusted Revenue Analysis

Adjusted revenues closely mirrored the pattern observed in reported revenues, with an initial decline in 2014, followed by gradual growth ending at 31,400 million USD in 2017. The close alignment between reported and adjusted revenue figures indicates minor adjustments were made, but the overall revenue trend remained consistent.

Adjusted Total Assets

Adjusted total assets showed a similar pattern to reported total assets but maintained slightly higher values throughout the period. Starting at 69,408 million USD in 2013, adjusted total assets decreased to 64,489 million USD in 2014, with gradual growth thereafter, reaching 70,236 million USD in 2017. The adjustments made imply a reassessment or revaluation of assets, but the underlying trend remains consistent with the reported figures.

Adjusted Total Asset Turnover Ratio

The adjusted total asset turnover ratio also mirrored the reported ratios, showing a decrease from 0.43 in 2013 to 0.42 in 2014, and then steadily increasing to 0.45 in 2017. This trend supports the observation of consistent or improving asset utilization efficiency after the initial decline.

Overall Insights

The data reveals a notable dip in financial performance and asset base in 2014, followed by a recovery and growth phase until 2017. Both reported and adjusted figures confirm this pattern. Asset utilization, reflected by the total asset turnover ratios (both reported and adjusted), remained relatively stable with slight improvement towards the end of the period. The company appears to have managed assets and revenues efficiently despite the mid-period slowdown, culminating in stronger financial metrics by 2017.

Current Assets

The current assets exhibited minor fluctuations from 2013 to 2015, slightly decreasing from 12,844 million US dollars in 2013 to 12,513 million in 2015. From 2015 onward, there was a steady increase, reaching 15,219 million US dollars by 2017.

Current Liabilities

Current liabilities showed an overall upward trend with some volatility. The amount increased from 8,383 million US dollars in 2013 to 9,204 million in 2014, dropped to 8,002 million in 2015, then rose significantly to 9,703 million in 2016 and surged to 14,077 million in 2017.

Reported Current Ratio

The reported current ratio declined over the five-year period, beginning at 1.53 in 2013 and dipping to 1.08 by 2017. This indicates a weakening short-term liquidity position, especially pronounced in the last year when current liabilities substantially increased relative to current assets.

Adjusted Current Assets

Adjusted current assets displayed a pattern similar to unadjusted current assets, remaining relatively steady around 12,658 to 13,678 million US dollars between 2013 and 2016, then increasing to 15,381 million in 2017.

Adjusted Current Liabilities

Adjusted current liabilities rose notably from 7,244 million US dollars in 2013 to 13,247 million in 2017, experiencing a decline in 2015 but an overall significant increase, particularly in 2017.

Adjusted Current Ratio

The adjusted current ratio similarly declined from 1.75 in 2013 to 1.16 in 2017. This trend mirrors the reported current ratio, demonstrating a deterioration in adjusted short-term liquidity over the period, with the sharpest decrease occurring in the final year.

Total Debt

The total debt exhibited a steady increase from 2013 to 2016, rising from 20,165 million USD to 24,339 million USD. However, in 2017, this figure slightly decreased to 23,744 million USD, indicating a modest reduction in liabilities.

Shareholders’ Equity

Reported shareholders’ equity showed a declining trend from 29,904 million USD in 2013 to a low of 23,619 million USD in 2015. This was followed by an increase in the subsequent years, reaching 28,375 million USD in 2017, suggesting a recovery in net assets.

Reported Debt to Equity Ratio

The reported debt to equity ratio rose from 0.67 in 2013 to a peak of 1.01 in 2015, indicating increased leverage. Afterward, the ratio stabilized around 1.00 in 2016 and declined to 0.84 in 2017, reflecting improved capitalization.

Adjusted Total Debt

Adjusted total debt followed a pattern similar to total debt, increasing steadily from 21,765 million USD in 2013 to 25,355 million USD in 2016, before slightly decreasing to 24,720 million USD in 2017. This adjustment confirms the observed trend in total liabilities.

Adjusted Total Equity

Adjusted total equity decreased from 34,081 million USD in 2013 to 27,369 million USD in 2015, mirroring the trend in reported equity. Subsequently, it increased to 31,422 million USD by 2017, indicating improved financial strength when adjustments are considered.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio increased from 0.64 in 2013 to 0.91 in 2015, suggesting rising leverage. From 2015 onward, the ratio decreased to 0.79 in 2017, demonstrating a reduction in leverage and stronger equity base after adjustments.

Overall Insights

The data indicates an initial phase of increasing financial leverage and declining equity up to 2015, followed by a period of stabilization and improvement through 2017. Both reported and adjusted metrics show that the company strengthened its equity position and reduced debt levels slightly in the latter years. This points to a deliberate effort to enhance financial stability and decrease reliance on debt financing after a period of elevated leverage.

Total Debt

The total debt increased steadily from 20,165 million US dollars in 2013 to a peak of 24,494 million US dollars in 2014, followed by a continued increase reaching 24,339 million US dollars in 2016. In 2017, a slight decrease to 23,744 million US dollars was observed, indicating some level of debt reduction after consistent growth.

Total Capital

Total capital showed a decline from 50,069 million US dollars in 2013 to 46,970 million US dollars in 2014. Subsequently, a gradual recovery occurred, increasing modestly to 47,411 million US dollars in 2015 and further to 52,119 million US dollars in 2017. The total capital demonstrates an overall upward trend after an initial drop in 2014.

Reported Debt to Capital Ratio

The reported debt to capital ratio rose from 0.40 in 2013 to 0.50 in 2015 and 2016, indicating an increased proportion of debt in the overall capital structure during that period. However, in 2017, this ratio decreased to 0.46, reflecting a slight improvement in the balance between debt and capital.

Adjusted Total Debt

The adjusted total debt followed a similar increasing trend to the reported total debt. It rose from 21,765 million US dollars in 2013 to 25,355 million US dollars in 2016. Like the total debt, it experienced a slight decrease in 2017, ending at 24,720 million US dollars.

Adjusted Total Capital

The adjusted total capital decreased from 55,846 million US dollars in 2013 to 51,832 million US dollars in 2014, then gradually increased each year, reaching 56,142 million US dollars in 2017. This pattern is consistent with the observed changes in total capital, showing a recovery and growth phase following an initial decline.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio increased from 0.39 in 2013 to a peak of 0.48 in 2015, remaining relatively stable at 0.47 in 2016, before decreasing to 0.44 in 2017. This trend suggests a moderate increase in leverage over the early years, followed by improvement in leverage position in the latest year.

Total Assets

Total assets experienced a decline from 67,994 million US dollars at the end of 2013 to 63,259 million US dollars in 2014. Subsequently, total assets showed a gradual recovery and steady growth, reaching 69,209 million US dollars by the end of 2017.

Total Shareholders’ Equity

Shareholders' equity decreased significantly between 2013 and 2015, dropping from 29,904 million US dollars to 23,619 million US dollars. Following this decrease, equity experienced a modest rebound, increasing to 28,375 million US dollars by the end of 2017, though it remained below the 2013 level.

Reported Financial Leverage

Reported financial leverage rose continuously from 2.27 in 2013 to a peak of 2.71 in 2016, indicating an increasing use of debt relative to equity over this period. In 2017, leverage declined to 2.44, suggesting some deleveraging or equity growth relative to liabilities during that year.

Adjusted Total Assets

Adjusted total assets mirrored the trend observed in total assets, starting at 69,408 million US dollars in 2013 and decreasing to 64,489 million US dollars in 2014. A steady increase followed, reaching 70,236 million US dollars by the end of 2017, reflecting ongoing asset growth after the initial dip.

Adjusted Total Equity

Adjusted total equity showed a downward trend from 34,081 million US dollars in 2013 to 27,369 million US dollars in 2015, followed by a recovery to 31,422 million US dollars in 2017. Despite this recovery, equity did not fully return to its initial 2013 level during the examined period.

Adjusted Financial Leverage

Adjusted financial leverage increased from 2.04 in 2013 to 2.37 in 2015, maintaining this level into 2016. In 2017, adjusted leverage decreased to 2.24, indicating a modest reduction in leverage and a slight strengthening of the equity base relative to adjusted assets.

The financial data indicates several notable trends in profitability and revenue performance over the five-year period examined.

Net Income Attributable to Shareholders

The net income showed a generally increasing trend, rising from 3,691 million US dollars in 2013 to 5,247 million US dollars in 2017. This reflects a significant improvement during the last year, with a particularly marked jump between 2016 and 2017.

Revenues

Revenues experienced some fluctuations but mostly exhibited growth overall. There was a dip from 29,795 million US dollars in 2013 to 27,359 million in 2014, followed by a gradual recovery and increase through to 31,271 million US dollars in 2017, surpassing the initial 2013 level.

Reported Net Profit Margin

The reported net profit margin showed a pattern of moderate volatility. It initially improved from 12.39% in 2013 to a peak of 13.99% in 2014, then declined slightly and remained relatively stable around 13.4% through 2016 before rising sharply to 16.78% in 2017. This suggests enhanced profitability relative to revenue in the latest year.

Adjusted Net Income

Adjusted net income decreased from 4,448 million US dollars in 2013 to 3,662 million in 2015, indicating a contraction during this period. However, it rebounded in subsequent years, reaching 4,431 million US dollars by 2017, close to the initial level in 2013.

Adjusted Revenues

Adjusted revenues mirrored the general trend of reported revenues: starting at 29,738 million US dollars in 2013, dipping to a low of 27,360 million in 2014, and then steadily increasing to 31,400 million US dollars in 2017.

Adjusted Net Profit Margin

The adjusted net profit margin decreased from 14.96% in 2013 to 12.99% in 2015, signaling a decline in profitability. This was followed by a recovery to 13.94% in 2016 and a slight increase to 14.11% in 2017. Overall, the margin remained fairly stable in the latter years but below the initial high in 2013.

Overall, the data suggests that while revenues experienced some volatility, they generally trended upward by the end of the period. Profitability, measured both by net income and profit margins, showed resilience with an especially strong improvement in the last recorded year. The adjusted figures present a more conservative profitability trend but confirm the recovery after a mid-period dip. This analysis highlights the company's ability to enhance earnings and margins despite fluctuations in revenue during this timeframe.

Net Income attributable to Time Warner Inc. shareholders

The net income showed a general upward trend over the five-year period. It increased steadily from 3,691 million US dollars in 2013 to 3,926 million US dollars in 2016, followed by a significant rise to 5,247 million US dollars in 2017. This indicates improved profitability, with a particularly strong performance in the final year observed.

Total Time Warner Inc. shareholders’ equity

This metric experienced a decline from 29,904 million US dollars in 2013 to 23,619 million US dollars in 2015, indicating a reduction in equity base during this period. Afterwards, the equity values showed a recovery, increasing to 28,375 million US dollars by 2017, though not fully reaching the 2013 level.

Reported Return on Equity (ROE)

ROE improved consistently during the period under consideration. Starting at 12.34% in 2013, it rose to 16.23% by 2015 and maintained a similar level in 2016 at 16.13%, before increasing notably to 18.49% in 2017. This suggests enhanced efficiency in utilizing shareholders’ equity to generate profits, particularly marked in the last year.

Adjusted Net Income

The adjusted net income displayed a decreasing trend from 4,448 million US dollars in 2013 to 3,662 million US dollars in 2015, indicating some underlying challenges or adjustments reducing reported income. However, from 2015 onward, the adjusted net income recovered to 4,099 million in 2016 and further increased to 4,431 million US dollars in 2017.

Adjusted Total Equity

The adjusted equity balance mirrored the pattern of total equity, declining from 34,081 million US dollars in 2013 to 27,369 million US dollars in 2015, followed by a recovery to 31,422 million US dollars in 2017. This suggests both reported and adjusted equity followed a similar path, reflecting changes in underlying accounting adjustments or revaluations.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE showed minor fluctuations, starting at 13.05% in 2013 and rising slightly to 14.08% in 2014. It declined somewhat to 13.38% in 2015, followed by an increase to 14.47% in 2016 and a small decrease to 14.10% in 2017. The adjusted ROE was more stable and less volatile compared to the reported ROE, indicating less pronounced swings when considering adjustments.

Overall Observations

The financial data indicate that while the net income and reported ROE experienced strong improvements, particularly in 2017, total shareholders’ equity saw a dip in the middle of the period before partially recovering. The adjusted figures suggest some volatility and adjustments affecting reported results, with adjusted net income and equity reflecting less pronounced growth but overall stabilization toward the end of the period. The differing trends between reported and adjusted measures highlight the importance of considering both metrics for a comprehensive understanding of financial performance.

Net Income Attributable to Shareholders

The net income attributable to shareholders exhibited a generally upward trend over the five-year period. Starting at 3,691 million US dollars in 2013, the figure increased steadily each year, culminating in a notable rise to 5,247 million US dollars by the end of 2017. This represents a substantial growth, particularly between 2016 and 2017.

Total Assets

Total assets demonstrated some fluctuations but overall increased gradually. The value stood at 67,994 million US dollars in 2013, declined to 63,259 million US dollars in 2014, and then showed a modest recovery in the following years to reach 69,209 million US dollars by 2017. The dip in 2014 appears to be a temporary anomaly in an otherwise rising trend.

Reported Return on Assets (ROA)

The reported ROA percentage showed variability but maintained an overall positive trend. It rose from 5.43% in 2013 to 6.05% in 2014, then slightly decreased and stabilized at approximately 6% in 2015 and 2016. A significant jump to 7.58% was observed in 2017, indicating improved efficiency in generating net income from assets that year.

Adjusted Net Income

Adjusted net income reflects a different pattern compared to reported net income. It started higher at 4,448 million US dollars in 2013 but declined over the next two years to a low of 3,662 million US dollars in 2015. Subsequently, it rebounded, rising to 4,431 million US dollars by 2017. This pattern suggests some adjustments or one-time items affected reported figures in certain years, especially early in the period.

Adjusted Total Assets

Adjusted total assets show a trend similar to reported total assets but start from a slightly higher base. The figure decreased from 69,408 million US dollars in 2013 to 64,489 million US dollars in 2014, followed by incremental increases in subsequent years, reaching 70,236 million US dollars in 2017. This mirrors the adjusted net income trend and indicates consistent asset base management after adjustments.

Adjusted Return on Assets (Adjusted ROA)

The adjusted ROA percentage varied modestly during the period, with an initial value of 6.41% in 2013 decreasing to a low of 5.64% in 2015. It then rose slightly to 6.31% by 2017. The adjusted ROA remained within a relatively narrow range, indicating consistent but moderate effectiveness in utilizing adjusted assets to generate earnings.

Overall Insights

The analysis of both reported and adjusted figures suggests an overall improvement in profitability and asset utilization efficiency by the end of 2017. While net income attributable to shareholders and reported ROA show stronger upward momentum, the adjusted measures indicate more conservative growth patterns with some volatility mid-period. The asset base, both reported and adjusted, experienced a dip early in the period before gradually increasing, signaling possible asset restructuring or divestitures around 2014. The divergence in trends between reported and adjusted net income highlights the impact of special items or adjustments on reported earnings, which should be considered for a comprehensive assessment of financial performance.