Stock Analysis on Net
Stock Analysis on Net

Time Warner Inc. (NYSE:TWX)

This company has been moved to the archive! The financial data has not been updated since April 26, 2018.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Time Warner Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2018 18.34% = 7.92% × 2.31
Dec 31, 2017 18.49% = 7.58% × 2.44
Sep 30, 2017 15.22% = 6.07% × 2.51
Jun 30, 2017 16.34% = 6.42% × 2.54
Mar 31, 2017 16.27% = 6.30% × 2.58
Dec 31, 2016 16.13% = 5.95% × 2.71
Sep 30, 2016 18.49% = 6.83% × 2.71
Jun 30, 2016 16.99% = 6.33% × 2.68
Mar 31, 2016 17.10% = 6.45% × 2.65
Dec 31, 2015 16.23% = 6.00% × 2.70
Sep 30, 2015 15.62% = 5.89% × 2.65
Jun 30, 2015 15.09% = 5.72% × 2.64
Mar 31, 2015 14.48% = 5.64% × 2.57
Dec 31, 2014 15.64% = 6.05% × 2.58
Sep 30, 2014 16.22% = 6.49% × 2.50
Jun 30, 2014 16.63% = 6.68% × 2.49
Mar 31, 2014 14.08% = 6.20% × 2.27
Dec 31, 2013 12.34% = 5.43% × 2.27
Sep 30, 2013 — = — × 2.22
Jun 30, 2013 — = — × 2.23
Mar 31, 2013 — = — × 2.23

Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2018 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Time Warner Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2018 18.34% = 17.33% × 0.46 × 2.31
Dec 31, 2017 18.49% = 16.78% × 0.45 × 2.44
Sep 30, 2017 15.22% = 13.59% × 0.45 × 2.51
Jun 30, 2017 16.34% = 14.10% × 0.46 × 2.54
Mar 31, 2017 16.27% = 13.90% × 0.45 × 2.58
Dec 31, 2016 16.13% = 13.39% × 0.44 × 2.71
Sep 30, 2016 18.49% = 15.75% × 0.43 × 2.71
Jun 30, 2016 16.99% = 14.54% × 0.44 × 2.68
Mar 31, 2016 17.10% = 14.41% × 0.45 × 2.65
Dec 31, 2015 16.23% = 13.63% × 0.44 × 2.70
Sep 30, 2015 15.62% = 12.93% × 0.46 × 2.65
Jun 30, 2015 15.09% = 12.84% × 0.45 × 2.64
Mar 31, 2015 14.48% = 12.66% × 0.45 × 2.57
Dec 31, 2014 15.64% = 13.99% × 0.43 × 2.58
Sep 30, 2014 16.22% = 14.41% × 0.45 × 2.50
Jun 30, 2014 16.63% = 14.85% × 0.45 × 2.49
Mar 31, 2014 14.08% = 14.26% × 0.43 × 2.27
Dec 31, 2013 12.34% = 12.39% × 0.44 × 2.27
Sep 30, 2013 — = — × — × 2.22
Jun 30, 2013 — = — × — × 2.23
Mar 31, 2013 — = — × — × 2.23

Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2018 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Time Warner Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2018 7.92% = 17.33% × 0.46
Dec 31, 2017 7.58% = 16.78% × 0.45
Sep 30, 2017 6.07% = 13.59% × 0.45
Jun 30, 2017 6.42% = 14.10% × 0.46
Mar 31, 2017 6.30% = 13.90% × 0.45
Dec 31, 2016 5.95% = 13.39% × 0.44
Sep 30, 2016 6.83% = 15.75% × 0.43
Jun 30, 2016 6.33% = 14.54% × 0.44
Mar 31, 2016 6.45% = 14.41% × 0.45
Dec 31, 2015 6.00% = 13.63% × 0.44
Sep 30, 2015 5.89% = 12.93% × 0.46
Jun 30, 2015 5.72% = 12.84% × 0.45
Mar 31, 2015 5.64% = 12.66% × 0.45
Dec 31, 2014 6.05% = 13.99% × 0.43
Sep 30, 2014 6.49% = 14.41% × 0.45
Jun 30, 2014 6.68% = 14.85% × 0.45
Mar 31, 2014 6.20% = 14.26% × 0.43
Dec 31, 2013 5.43% = 12.39% × 0.44
Sep 30, 2013 — = — × —
Jun 30, 2013 — = — × —
Mar 31, 2013 — = — × —

Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2018 is the increase in profitability measured by net profit margin ratio.