Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Time Warner Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin exhibits some fluctuation over the periods observed, starting at approximately 44.94% in the first quarter of 2014 and generally declining through 2015 to a low near 41.8%. From 2016 onwards, the margin experiences a modest recovery peaking near 44.14% at the end of 2016 before gradually declining again, reaching 42.82% by the first quarter of 2018. Overall, the margin demonstrates variability but appears relatively stable within a mid-40% range over the longer term, suggesting consistent core profitability on sales despite short-term variations.
- Operating Profit Margin
- The operating profit margin shows a downward trend during 2014 and the first half of 2015, dropping from about 24.42% to a trough near 20.64%. However, from mid-2015 onward, a noticeable improvement occurs, with margins increasing to approximately 25.74% by the end of 2016 and maintaining levels slightly below 25% thereafter until a slight decline to 24.28% in early 2018. This pattern indicates improvements in operating efficiency or control over operating expenses post mid-2015, allowing higher retention of sales revenue as operating income.
- Net Profit Margin
- Net profit margin shows moderate volatility, initially around 14.26% in early 2014, with a dip in 2015 to just above 12.5%. Thereafter, the margin exhibits a gradual recovery beginning in late 2015, reaching a peak of 16.78% in the latter part of 2017 and slightly increasing to 17.33% in early 2018. This upward trajectory in recent years suggests improved overall profitability after all expenses, including taxes and interest, possibly reflecting operational enhancements, cost management, or favorable tax conditions.
- Return on Equity (ROE)
- ROE starts at 14.08% in early 2014 and trends upwards with some cyclical fluctuations, reaching about 18.49% twice, once at the end of 2016 and again at the end of 2017, with a small decline to 18.34% in early 2018. This progression indicates enhanced effectiveness in generating income relative to shareholders’ equity, implying improved overall financial performance and value creation for equity holders over the analyzed period.
- Return on Assets (ROA)
- ROA displays a gradual upward trend with some erratic movements: beginning at 6.2% in early 2014, then fluctuating lightly but increasing steadily to 7.92% by the first quarter of 2018. The improvement in ROA suggests more efficient use of the company’s asset base to generate earnings, highlighting better asset management or increased profitability from existing resources in recent years.
Return on Sales
Return on Investment
Gross Profit Margin
Time Warner Inc., gross profit margin 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) | |||||||||||||||||||||||
| Gross profit | 3,279) | 3,430) | 3,667) | 3,125) | 3,402) | 3,233) | 3,294) | 3,112) | 3,303) | 2,727) | 3,038) | 3,160) | 3,039) | 3,107) | 2,562) | 2,863) | 2,952) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 42.82% | 43.57% | 43.95% | 43.34% | 43.84% | 44.14% | 43.63% | 43.65% | 43.21% | 42.55% | 43.22% | 42.02% | 41.80% | 41.98% | 42.84% | 44.73% | 44.94% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross profitQ1 2018
+ Gross profitQ4 2017
+ Gross profitQ3 2017
+ Gross profitQ2 2017)
÷ (RevenuesQ1 2018
+ RevenuesQ4 2017
+ RevenuesQ3 2017
+ RevenuesQ2 2017)
= 100 × (3,279 + 3,430 + 3,667 + 3,125)
÷ (7,996 + 8,611 + 7,595 + 7,330)
= 42.82%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibit fluctuations over the observed periods, with noticeable seasonal patterns, especially higher values in the fourth quarters of each year. The revenue reached a low point in the third quarter of 2014 at 6,243 million USD, followed by a recovery and generally rising trend that peaked in the fourth quarter of 2017 at 8,611 million USD. The first quarter of 2018 shows a decrease from the previous quarter but remains above most prior corresponding quarters.
- Gross Profit Patterns
- Gross profit follows a pattern somewhat similar to revenues, with quarterly variability and increases particularly evident in year-end quarters. The lowest gross profit observed is in the third quarter of 2014 at 2,562 million USD, followed by rebounds and peaks reaching a maximum of 3,667 million USD in the third quarter of 2017. The latest reported quarter (first quarter of 2018) shows a decrease from the previous quarter but remains higher than many prior periods.
- Gross Profit Margin Analysis
- The gross profit margin, expressed as a percentage, shows moderate variability but remains within a fairly narrow range between approximately 41.8% and 44.9%. The margin declined from near 45% in the first quarter of 2014 to a low near 41.8% in early 2015. Subsequently, the margin stabilizes mostly in the low to mid-43% range, with some quarters experiencing slight dips or increases. The margin peaks in the first quarter of 2014 and again approaches similar levels in late 2016 and 2017, while the earliest part of 2018 shows a slight contraction in margin percentage.
- Overall Insights
- The company demonstrates a pattern of seasonal revenue and profit fluctuations, typically stronger in the year's final quarter. Despite the variability, revenues and gross profit generally trend upward over the examined periods, culminating in higher absolute figures by late 2017. The gross profit margin remains stable, indicating consistent cost management relative to revenues, even as the company grows. Slight declines in margin in the initial quarters of some years suggest possible cyclical cost pressures or pricing changes. The first quarter of 2018 shows some diminution in both revenue and gross profit compared to the preceding quarter, suggesting seasonal or market influences affecting early-year performance.
Operating Profit Margin
Time Warner Inc., operating profit margin 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) | |||||||||||||||||||||||
| Operating income | 1,811) | 1,907) | 2,245) | 1,692) | 2,076) | 1,691) | 2,014) | 1,846) | 1,996) | 1,386) | 1,834) | 1,859) | 1,786) | 1,389) | 971) | 1,567) | 2,048) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 24.28% | 25.33% | 25.22% | 24.81% | 25.64% | 25.74% | 25.41% | 25.31% | 25.00% | 24.41% | 24.04% | 21.26% | 20.64% | 21.84% | 22.63% | 25.16% | 24.42% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating incomeQ1 2018
+ Operating incomeQ4 2017
+ Operating incomeQ3 2017
+ Operating incomeQ2 2017)
÷ (RevenuesQ1 2018
+ RevenuesQ4 2017
+ RevenuesQ3 2017
+ RevenuesQ2 2017)
= 100 × (1,811 + 1,907 + 2,245 + 1,692)
÷ (7,996 + 8,611 + 7,595 + 7,330)
= 24.28%
2 Click competitor name to see calculations.
- Operating Income Trends
- Operating income demonstrates notable fluctuations over the analyzed periods. Initially, it declined sharply from 2,048 million USD to 971 million USD in the first three quarters of 2014, indicating a weakening in profitability during this time. Subsequently, the operating income recovered in late 2014 and early 2015, peaking at 1,859 million USD in the second quarter of 2015. After a lower point in the last quarter of 2015 at 1,386 million USD, the metric rose again, reaching a high of 2,245 million USD in the third quarter of 2017. However, a downward adjustment is seen afterward, with the last reported quarter of March 2018 registering 1,811 million USD.
- Revenue Patterns
- Revenue figures exhibit a cyclical pattern with some upward momentum over the span of the report. From early 2014 to early 2015, revenues oscillated between approximately 6,243 million USD and 7,525 million USD, showing some variability without a strong directional trend. From mid-2015 onwards, revenue tended to rise, peaking at 8,611 million USD in the fourth quarter of 2017. The most recent period shows a slight decrease, with revenue at 7,996 million USD in March 2018, yet the overall trajectory across the four years indicates moderate growth.
- Operating Profit Margin Analysis
- Operating profit margin remained mostly stable within a narrow band ranging from approximately 20.6% to 25.7%. The lowest margins occurred in 2015, notably 20.64% in March 2015, coinciding with a recovery phase in operating income. Margins improved steadily after this period, maintaining levels above 24% from early 2016 through early 2018. This consistency in margin suggests effective cost control and operational efficiency during periods of both rising and fluctuating revenues.
- Overall Insights
- The company experienced volatility in operating income, particularly in 2014, but generally managed to improve and sustain profitability in subsequent years despite fluctuations in revenue. Revenue showed a tendency toward growth, especially noticeable from 2016 onwards, aligning with a stable or improving operating margin. The combination of increasing revenues and maintained margins suggests resilience in competitive positioning and operational management. The slight decline in operating income and revenue in early 2018 may warrant further observation, although it has not negated overall positive trends observed in prior quarters.
Net Profit Margin
Time Warner Inc., net profit margin 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) | |||||||||||||||||||||||
| Net income attributable to Time Warner Inc. shareholders | 1,643) | 1,389) | 1,372) | 1,062) | 1,424) | 293) | 1,467) | 952) | 1,214) | 857) | 1,035) | 971) | 970) | 718) | 967) | 850) | 1,292) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 17.33% | 16.78% | 13.59% | 14.10% | 13.90% | 13.39% | 15.75% | 14.54% | 14.41% | 13.63% | 12.93% | 12.84% | 12.66% | 13.99% | 14.41% | 14.85% | 14.26% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, 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 profit margin = 100
× (Net income attributable to Time Warner Inc. shareholdersQ1 2018
+ Net income attributable to Time Warner Inc. shareholdersQ4 2017
+ Net income attributable to Time Warner Inc. shareholdersQ3 2017
+ Net income attributable to Time Warner Inc. shareholdersQ2 2017)
÷ (RevenuesQ1 2018
+ RevenuesQ4 2017
+ RevenuesQ3 2017
+ RevenuesQ2 2017)
= 100 × (1,643 + 1,389 + 1,372 + 1,062)
÷ (7,996 + 8,611 + 7,595 + 7,330)
= 17.33%
2 Click competitor name to see calculations.
- Net Income Trend
- Net income attributable to shareholders exhibits noticeable fluctuations over the quarters analyzed. Initially, the values decrease from 1292 million in March 2014 to a lower range around 718 million by December 2014. From early 2015 onwards, a recovery phase is observable, with net income gradually increasing and peaking at 1467 million in September 2016. However, a sharp dip to 293 million in December 2016 interrupts this growth. Following this decline, net income resumes an upward trend, reaching its highest point in the data series at 1643 million in March 2018.
- Revenue Pattern
- Revenues demonstrate moderate variability throughout the periods. Initially stable around the mid-6000 million range in early 2014, revenues rise and fall intermittently without a clear sustained trend until late 2016, where a substantial increase to 7891 million is seen. After that, revenue values fluctuate moderately, peaking again at 8611 million in December 2017 and then slightly decreasing to 7996 million by March 2018. Overall, revenue growth is somewhat irregular but ends higher than the initial values.
- Net Profit Margin Analysis
- The net profit margin shows a general improvement trend, starting at approximately 14.3% in the first quarter of 2014. Minor fluctuations occur, with values mostly oscillating between 12.6% and 15.7% until 2016. From December 2016 there is a rebound in margin performance, culminating in a marked increase to 16.78% in December 2017 and further to 17.33% by March 2018. This trend indicates enhanced profitability relative to revenues in the later periods.
- Relationship Between Metrics
- The data suggests that net income and net profit margin are not always directly correlated with revenues. For instance, despite substantial revenue increases in late 2016 and 2017, net income experienced a severe drop in December 2016. However, the margin improvement in later periods alongside a revenue increase suggests improved efficiency or cost management contributing to better profitability.
- Overall Insights
- The company experienced some volatility in profitability during the period examined, notably around late 2016. Nevertheless, the latter quarters show a recovery and strengthening in financial performance, with net income and profit margins reaching their highest levels, supported by relatively strong revenues. This indicates positive operational momentum toward the end of the analyzed timeframe.
Return on Equity (ROE)
Time Warner Inc., ROE 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) | |||||||||||||||||||||||
| Net income attributable to Time Warner Inc. shareholders | 1,643) | 1,389) | 1,372) | 1,062) | 1,424) | 293) | 1,467) | 952) | 1,214) | 857) | 1,035) | 971) | 970) | 718) | 967) | 850) | 1,292) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 18.34% | 18.49% | 15.22% | 16.34% | 16.27% | 16.13% | 18.49% | 16.99% | 17.10% | 16.23% | 15.62% | 15.09% | 14.48% | 15.64% | 16.22% | 16.63% | 14.08% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net income attributable to Time Warner Inc. shareholdersQ1 2018
+ Net income attributable to Time Warner Inc. shareholdersQ4 2017
+ Net income attributable to Time Warner Inc. shareholdersQ3 2017
+ Net income attributable to Time Warner Inc. shareholdersQ2 2017)
÷ Total Time Warner Inc. shareholders’ equity
= 100 × (1,643 + 1,389 + 1,372 + 1,062)
÷ 29,805 = 18.34%
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's performance over the reported periods.
- Net Income
- The net income attributable to shareholders exhibited fluctuations throughout the timeframe. Initially, there was a decline from 1,292 million USD in March 2014 to a low of 718 million USD by December 2014. Subsequently, net income generally trended upward with some variability, reaching a peak of 1,467 million USD in September 2016. However, a sharp drop to 293 million USD occurred in December 2016, representing a significant deviation from the general upward trend. Following this dip, net income recovered strongly, culminating in the highest reported value of 1,643 million USD by March 2018.
- Total Shareholders’ Equity
- Shareholders’ equity showed a decreasing trend from 30,044 million USD in March 2014 to 23,619 million USD by December 2015. After this decline period, equity stabilized, remaining relatively flat around 23,800 million USD through 2016. Starting in early 2017, shareholders’ equity began a consistent upward trajectory, increasing each quarter and reaching 29,805 million USD by March 2018. This suggests a recovery phase and possible strengthening of the company’s capital base during the latter part of the timeframe.
- Return on Equity (ROE)
- The ROE percentage exhibited moderate fluctuations, generally maintaining a range between approximately 14% and 18.5%. The ratio decreased slightly from 14.08% in March 2014 to 14.48% in March 2015, then increased gradually with some volatility, achieving a high of 18.49% in September 2016. A subsequent decline to 16.13% occurred in December 2016, coinciding with the net income drop in the same period. The ROE rebounded thereafter, peaking again at 18.49% by December 2017 and sustaining a similarly elevated level into March 2018 (18.34%). This pattern reflects the company’s fluctuating profitability relative to its equity base, with periods of enhanced efficiency especially evident in late 2016 and through 2017.
In summary, the data indicates initial volatility in profitability accompanied by a reduction in equity, followed by a phase of stabilization and then growth in shareholders’ equity. Net income and ROE demonstrated resilience after a substantial dip in late 2016, leading to improved financial performance by early 2018. This overall recovery suggests effective management of resources and an improving financial condition towards the end of the observed period.
Return on Assets (ROA)
Time Warner Inc., ROA 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) | |||||||||||||||||||||||
| Net income attributable to Time Warner Inc. shareholders | 1,643) | 1,389) | 1,372) | 1,062) | 1,424) | 293) | 1,467) | 952) | 1,214) | 857) | 1,035) | 971) | 970) | 718) | 967) | 850) | 1,292) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 7.92% | 7.58% | 6.07% | 6.42% | 6.30% | 5.95% | 6.83% | 6.33% | 6.45% | 6.00% | 5.89% | 5.72% | 5.64% | 6.05% | 6.49% | 6.68% | 6.20% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net income attributable to Time Warner Inc. shareholdersQ1 2018
+ Net income attributable to Time Warner Inc. shareholdersQ4 2017
+ Net income attributable to Time Warner Inc. shareholdersQ3 2017
+ Net income attributable to Time Warner Inc. shareholdersQ2 2017)
÷ Total assets
= 100 × (1,643 + 1,389 + 1,372 + 1,062)
÷ 68,997 = 7.92%
2 Click competitor name to see calculations.
- Net Income Trend
- The net income attributable to shareholders displayed fluctuations over the observed periods. Initial figures in early 2014 show a peak at 1,292 million US dollars, followed by a decline through the end of 2014. The income values generally hovered in the 900 to 1,000 million range through mid-2015, before recovering with an upward trend starting in late 2015. The peak values around the last quarters of 2016 were inconsistent, with a significant dip in December 2016 but rebounding strongly in the following quarters of 2017 and reaching a high of 1,643 million US dollars by the first quarter of 2018.
- Total Assets Stability
- Total assets showed moderate variability but remained within a relatively stable range across the periods, fluctuating from approximately 62,095 million US dollars to around 69,209 million US dollars. The asset base showed a slight overall growth trend, particularly observable from late 2016 onwards, suggesting a steady asset accumulation over time.
- Return on Assets (ROA) Analysis
- ROA exhibited movement between 5.6% and nearly 7.9%, with some volatility quarter to quarter. Notably, the ROA declined in 2015 relative to 2014 levels but started to recover from 2016, peaking in early 2018. This recovery in efficiency indicates improved profitability relative to asset base, culminating in the highest observed ROA of 7.92% in the first quarter of 2018.
- Overall Insights
- The financial data suggests a cyclical pattern in income yet a generally positive trajectory in both total assets and asset utilization efficiency over the four-year span. The significant rebound in net income and improvement in ROA in 2017 and early 2018 reflects enhanced operational performance or favorable market conditions. The stability and gradual increase in total assets indicate a solid financial foundation supporting this profit growth.