Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Time Warner Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Time Warner Inc. gross profit margin ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Time Warner Inc. operating profit margin ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Time Warner Inc. net profit margin ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Time Warner Inc. ROE deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Time Warner Inc. ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Gross Profit Margin
Time Warner Inc., gross profit margin 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) | ||||||
| Gross profit | 13,624) | 12,942) | 11,964) | 11,484) | 13,565) | |
| Revenues | 31,271) | 29,318) | 28,118) | 27,359) | 29,795) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 43.57% | 44.14% | 42.55% | 41.98% | 45.53% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| 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 2017 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 13,624 ÷ 31,271 = 43.57%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Time Warner Inc. gross profit margin ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Operating Profit Margin
Time Warner Inc., operating profit margin 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) | ||||||
| Operating income | 7,920) | 7,547) | 6,865) | 5,975) | 6,605) | |
| Revenues | 31,271) | 29,318) | 28,118) | 27,359) | 29,795) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 25.33% | 25.74% | 24.41% | 21.84% | 22.17% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| 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 2017 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 7,920 ÷ 31,271 = 25.33%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Time Warner Inc. operating profit margin ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Net Profit Margin
Time Warner Inc., net profit margin 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 income attributable to Time Warner Inc. shareholders | 5,247) | 3,926) | 3,833) | 3,827) | 3,691) | |
| Revenues | 31,271) | 29,318) | 28,118) | 27,359) | 29,795) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 16.78% | 13.39% | 13.63% | 13.99% | 12.39% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| 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 2017 Calculation
Net profit margin = 100 × Net income attributable to Time Warner Inc. shareholders ÷ Revenues
= 100 × 5,247 ÷ 31,271 = 16.78%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Time Warner Inc. net profit margin ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Return on Equity (ROE)
Time Warner Inc., ROE 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 income attributable to Time Warner Inc. shareholders | 5,247) | 3,926) | 3,833) | 3,827) | 3,691) | |
| Total Time Warner Inc. shareholders’ equity | 28,375) | 24,335) | 23,619) | 24,476) | 29,904) | |
| Profitability Ratio | ||||||
| ROE1 | 18.49% | 16.13% | 16.23% | 15.64% | 12.34% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| 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 2017 Calculation
ROE = 100 × Net income attributable to Time Warner Inc. shareholders ÷ Total Time Warner Inc. shareholders’ equity
= 100 × 5,247 ÷ 28,375 = 18.49%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Time Warner Inc. ROE deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Return on Assets (ROA)
Time Warner Inc., ROA 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 income attributable to Time Warner Inc. shareholders | 5,247) | 3,926) | 3,833) | 3,827) | 3,691) | |
| Total assets | 69,209) | 65,966) | 63,848) | 63,259) | 67,994) | |
| Profitability Ratio | ||||||
| ROA1 | 7.58% | 5.95% | 6.00% | 6.05% | 5.43% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| 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 2017 Calculation
ROA = 100 × Net income attributable to Time Warner Inc. shareholders ÷ Total assets
= 100 × 5,247 ÷ 69,209 = 7.58%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Time Warner Inc. ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |