Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Time Warner Inc., long-term (investment) activity ratios
Based on: 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26), 10-K (filing date: 2014-02-26).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Time Warner Inc.’s net fixed asset turnover ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Time Warner Inc.’s total asset turnover ratio improved from 2015 to 2016 and from 2016 to 2017. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Time Warner Inc.’s equity turnover ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Net Fixed Asset Turnover
Time Warner Inc., net fixed asset turnover 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 | |
| Property, plant and equipment, net | 2,707 | 2,510 | 2,596 | 2,655 | 3,825 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 11.55 | 11.68 | 10.83 | 10.30 | 7.79 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Charter Communications Inc. | 1.23 | 0.88 | 1.17 | — | — | |
| Comcast Corp. | 2.20 | 2.22 | 2.21 | — | — | |
| Netflix Inc. | 36.61 | 35.27 | 39.09 | — | — | |
| Walt Disney Co. | 1.94 | 2.03 | 2.08 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Media | 1.91 | 1.80 | — | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Services | 3.82 | 3.82 | — | — | — | |
Based on: 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26), 10-K (filing date: 2014-02-26).
1 2017 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 31,271 ÷ 2,707 = 11.55
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Time Warner Inc.’s net fixed asset turnover ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Total Asset Turnover
Time Warner Inc., total asset turnover 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 | |
| Total assets | 69,209 | 65,966 | 63,848 | 63,259 | 67,994 | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.45 | 0.44 | 0.44 | 0.43 | 0.44 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Charter Communications Inc. | 0.28 | 0.19 | 0.25 | — | — | |
| Comcast Corp. | 0.45 | 0.45 | 0.45 | — | — | |
| Netflix Inc. | 0.61 | 0.65 | 0.66 | — | — | |
| Walt Disney Co. | 0.58 | 0.60 | 0.59 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Media | 0.43 | 0.40 | — | — | — | |
| Total Asset Turnover, Industry | ||||||
| Consumer Services | 1.34 | 1.35 | — | — | — | |
Based on: 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26), 10-K (filing date: 2014-02-26).
1 2017 Calculation
Total asset turnover = Revenues ÷ Total assets
= 31,271 ÷ 69,209 = 0.45
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Time Warner Inc.’s total asset turnover ratio improved from 2015 to 2016 and from 2016 to 2017. |
Equity Turnover
Time Warner Inc., equity turnover 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 | |
| Total Time Warner Inc. shareholders’ equity | 28,375 | 24,335 | 23,619 | 24,476 | 29,904 | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.10 | 1.20 | 1.19 | 1.12 | 1.00 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Charter Communications Inc. | 1.06 | 0.72 | — | — | — | |
| Comcast Corp. | 1.23 | 1.49 | 1.43 | — | — | |
| Netflix Inc. | 3.26 | 3.30 | 3.05 | — | — | |
| Walt Disney Co. | 1.33 | 1.29 | 1.18 | — | — | |
| Equity Turnover, Sector | ||||||
| Media | 1.26 | 1.24 | — | — | — | |
| Equity Turnover, Industry | ||||||
| Consumer Services | 4.28 | 4.17 | — | — | — | |
Based on: 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26), 10-K (filing date: 2014-02-26).
1 2017 Calculation
Equity turnover = Revenues ÷ Total Time Warner Inc. shareholders’ equity
= 31,271 ÷ 28,375 = 1.10
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Time Warner Inc.’s equity turnover ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |