Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
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).
The analysis of the turnover ratios over multiple quarters reveals distinct trends for net fixed asset turnover, total asset turnover, and equity turnover.
- Net Fixed Asset Turnover
- This ratio demonstrates an overall increasing trend from the first quarter of 2014 through early 2017, rising from 9.21 to a peak of 12.23. After reaching this peak, a slight decline is observed in the subsequent quarters, with the figure decreasing to 11.45 by the first quarter of 2018. This pattern suggests improving efficiency in utilizing net fixed assets to generate sales during the initial period, followed by a moderate reduction in turnover efficiency towards the end of the time span.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable throughout the observed periods, fluctuating within a narrow range between 0.43 and 0.46. There is no significant upward or downward trend, indicating consistent usage of total assets to generate revenues across quarters. Minor oscillations may reflect seasonal variations or operational adjustments but do not signal major changes in asset utilization efficiency.
- Equity Turnover
- The equity turnover ratio exhibits a general upward movement from 0.99 in the first quarter of 2014 to a peak of 1.21 in the third quarter of 2015. Following this peak, a gradual decline is observed, with the ratio falling to 1.06 by the first quarter of 2018. This trend implies an initial improvement in the efficiency of equity in generating sales, succeeded by a steady reduction in turnover efficiency related to equity over the latter periods.
Overall, while net fixed asset turnover and equity turnover both experienced growth phases followed by declines, total asset turnover consistently maintained stable performance. These trends might indicate shifts in operational efficiency, investment levels, or strategic asset management that affected the utilization rates of different asset categories.
Net Fixed Asset Turnover
Time Warner Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenues | 7,996) | 8,611) | 7,595) | 7,330) | 7,735) | 7,891) | 7,167) | 6,952) | 7,308) | 7,079) | 6,564) | 7,348) | 7,127) | 7,525) | 6,243) | 6,788) | 6,803) | ||||||
| Property, plant and equipment, net | 2,753) | 2,707) | 2,555) | 2,464) | 2,462) | 2,510) | 2,482) | 2,516) | 2,546) | 2,596) | 2,569) | 2,567) | 2,580) | 2,655) | 2,678) | 2,716) | 3,219) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | 11.45 | 11.55 | 11.96 | 12.23 | 12.08 | 11.68 | 11.49 | 11.09 | 11.12 | 10.83 | 11.12 | 11.00 | 10.73 | 10.30 | 10.60 | 10.68 | 9.21 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2018 Calculation
Net fixed asset turnover
= (RevenuesQ1 2018
+ RevenuesQ4 2017
+ RevenuesQ3 2017
+ RevenuesQ2 2017)
÷ Property, plant and equipment, net
= (7,996 + 8,611 + 7,595 + 7,330)
÷ 2,753 = 11.45
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibited a dynamic pattern over the analyzed periods, fluctuating across quarters but generally displaying an upward trend by the end of the timeframe. Initially, revenues started at 6,803 million US dollars and showed some variability, with notable drops in the third quarter of 2014 (6,243 million) and in the second quarter of 2016 (6,952 million). However, significant recovery and growth occurred in later periods, culminating in a peak of 8,611 million US dollars in the fourth quarter of 2017. This reflects an overall positive trajectory in revenue generation, despite intermittent declines.
- Property, plant and equipment, net
- The net value of property, plant, and equipment showed a gradual decline throughout most periods, decreasing from 3,219 million US dollars in the first quarter of 2014 to a low point around 2,462 million in the first quarter of 2017. This declining trend suggests ongoing depreciation, asset disposals, or limited reinvestment in fixed assets over these years. Nonetheless, a modest recovery is observed toward the end of the period under review, reaching 2,753 million US dollars by the first quarter of 2018, indicating possible new investments or asset revaluation.
- Net fixed asset turnover
- The net fixed asset turnover ratio demonstrated consistent improvement over time, rising from 9.21 at the start of the period to a peak of 12.23 by the second quarter of 2017. This upward movement indicates increasing efficiency in using fixed assets to generate revenues. Although there was a slight decrease after the peak, the ratio remained elevated relative to the initial value, ending at 11.45 in the first quarter of 2018. Such performance suggests successful asset utilization improvements and potentially enhanced operational management.
- Overall analysis
- The combined analysis indicates that despite a reduction in the gross value of fixed assets over most of the period, the company improved its efficiency in turning these assets into revenue. The overall revenue growth alongside a rising net fixed asset turnover ratio implies improved asset productivity and operational effectiveness. The late-stage recovery in net fixed assets could support continued growth and enhanced future turnover ratios, reinforcing a positive outlook if these trends persist.
Total Asset Turnover
Time Warner Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenues | 7,996) | 8,611) | 7,595) | 7,330) | 7,735) | 7,891) | 7,167) | 6,952) | 7,308) | 7,079) | 6,564) | 7,348) | 7,127) | 7,525) | 6,243) | 6,788) | 6,803) | ||||||
| Total assets | 68,997) | 69,209) | 68,343) | 66,096) | 65,649) | 65,966) | 65,764) | 64,127) | 63,254) | 63,848) | 62,674) | 63,425) | 62,195) | 63,259) | 63,095) | 64,490) | 68,199) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | 0.46 | 0.45 | 0.45 | 0.46 | 0.45 | 0.44 | 0.43 | 0.44 | 0.45 | 0.44 | 0.46 | 0.45 | 0.45 | 0.43 | 0.45 | 0.45 | 0.43 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2018 Calculation
Total asset turnover
= (RevenuesQ1 2018
+ RevenuesQ4 2017
+ RevenuesQ3 2017
+ RevenuesQ2 2017)
÷ Total assets
= (7,996 + 8,611 + 7,595 + 7,330)
÷ 68,997 = 0.46
2 Click competitor name to see calculations.
The financial data over the presented periods reveal several noteworthy trends and patterns in key performance metrics.
- Revenues
- Revenues exhibit a generally upward trend with notable fluctuations across quarters. Starting at approximately 6,803 million US dollars in the first quarter of 2014, revenues peaked in the fourth quarter of 2017 at 8,611 million US dollars. Interim quarters show variability, for instance, a dip in the third quarter of 2014 down to 6,243 million US dollars, followed by recovery and steady increases thereafter. The revenue pattern suggests seasonal or cyclical factors influencing income, but the overall trajectory is positive, culminating in higher revenue levels in 2017 and early 2018 compared to 2014.
- Total Assets
- The total assets remain relatively stable with mild fluctuations around the 62,000 to 69,000 million US dollars range throughout the timeframe. Initial asset values started at around 68,199 million US dollars in early 2014, experiencing slight decreases in mid-2014 and mid-2015 periods, then gradually increasing towards the end of 2017 and into the first quarter of 2018, reaching approximately 68,997 million US dollars. This stability in total assets, combined with minor growth, indicates a steady asset base with potential reinvestment or acquisition activities reflected in the upward trend later in the period.
- Total Asset Turnover
- The total asset turnover ratio remains fairly consistent across all quarters, hovering between 0.43 and 0.46. This indicates a stable efficiency level in utilizing assets to generate revenues over time. There are minor fluctuations, but no significant upward or downward trend that would suggest a change in operational efficiency or asset management over the observed periods.
In summary, the company demonstrates stable asset management combined with a consistent ability to generate sales from these assets. Revenues show growth with periodic fluctuations, suggesting responsiveness to market or seasonal influences while maintaining an overall positive growth trajectory. The steadiness of the asset base alongside consistent turnover ratios reflects a balanced operational structure without notable volatility or risk in asset utilization efficiency.
Equity Turnover
Time Warner Inc., equity turnover calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenues | 7,996) | 8,611) | 7,595) | 7,330) | 7,735) | 7,891) | 7,167) | 6,952) | 7,308) | 7,079) | 6,564) | 7,348) | 7,127) | 7,525) | 6,243) | 6,788) | 6,803) | ||||||
| Total Time Warner Inc. shareholders’ equity | 29,805) | 28,375) | 27,267) | 25,987) | 25,425) | 24,335) | 24,278) | 23,888) | 23,843) | 23,619) | 23,648) | 24,025) | 24,198) | 24,476) | 25,230) | 25,907) | 30,044) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | 1.06 | 1.10 | 1.12 | 1.16 | 1.17 | 1.20 | 1.17 | 1.17 | 1.19 | 1.19 | 1.21 | 1.18 | 1.14 | 1.12 | 1.13 | 1.12 | 0.99 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2018 Calculation
Equity turnover
= (RevenuesQ1 2018
+ RevenuesQ4 2017
+ RevenuesQ3 2017
+ RevenuesQ2 2017)
÷ Total Time Warner Inc. shareholders’ equity
= (7,996 + 8,611 + 7,595 + 7,330)
÷ 29,805 = 1.06
2 Click competitor name to see calculations.
- Revenues
- The revenue figures exhibit notable fluctuations across the quarters observed. Starting from approximately 6.8 billion USD in the first quarter of 2014, revenues experienced a slight decline mid-year and a recovery by the end of 2014, reaching a peak over 7.5 billion USD in Q4 2014. The subsequent quarters show variability but generally maintain revenue levels above 7 billion USD, with a pronounced increase to 8.6 billion USD in Q4 2017. The data suggests a growth trend toward the end of the period, indicating improved sales or operational scaling during late 2017 and early 2018.
- Total Shareholders’ Equity
- Shareholders' equity displays a decreasing trend from early 2014 through the end of 2015, falling from just above 30 billion USD to approximately 23.6 billion USD. From 2016 onward, the equity base stabilizes and then steadily increases, recovering to nearly 29.8 billion USD by March 2018. This uptrend in equity during the latter period may reflect retained earnings or capital injections offsetting prior declines, suggesting enhanced financial strength or accumulation of value for shareholders over time.
- Equity Turnover Ratio
- The equity turnover ratio remains fairly stable throughout the period, with values generally ranging from about 1.0 to 1.2. It reveals a modest increase from early 2014 through 2015, peaking near 1.21 in Q3 2015, indicating a somewhat higher efficiency in generating revenues from equity during that time. Following this peak, the ratio shows a gradual decline, ending at around 1.06 in Q1 2018. This downward trend might indicate a relative reduction in the efficiency of using shareholders' equity to generate revenues in recent quarters.
- Overall Observations
- The data reflects a company experiencing cyclical revenue patterns with an overall upward shift in later periods. Shareholders’ equity contraction in the early phase suggests potential challenges or capital reductions, but recovery thereafter aligns with increasing revenues, indicating improving financial health. The decline in equity turnover despite rising revenues and equity may highlight changing operational dynamics or increased equity base outpacing revenue growth. These trends could warrant further investigation into profitability, capital structure, and asset utilization to fully understand the underlying factors.