Stock Analysis on Net

Time Warner Cable Inc. (NYSE:TWC)

This company has been moved to the archive! The financial data has not been updated since April 28, 2016.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Time Warner Cable Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 3,391 3,745 3,388 3,807 3,328
Invested capital2 45,332 44,929 44,327 46,124 44,961
Performance Ratio
ROIC3 7.48% 8.34% 7.64% 8.25% 7.40%
Benchmarks
ROIC, Competitors4
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2015 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 3,391 ÷ 45,332 = 7.48%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Time Warner Cable Inc. ROIC improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.

Decomposition of ROIC

Time Warner Cable Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2015 7.48% = 18.75% × 0.52 × 76.24%
Dec 31, 2014 8.34% = 20.67% × 0.51 × 79.38%
Dec 31, 2013 7.64% = 21.11% × 0.50 × 72.56%
Dec 31, 2012 8.25% = 23.37% × 0.46 × 76.13%
Dec 31, 2011 7.40% = 20.49% × 0.44 × 82.52%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2015 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Time Warner Cable Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 3,391 3,745 3,388 3,807 3,328
Add: Cash operating taxes2 1,057 973 1,281 1,194 705
Net operating profit before taxes (NOPBT) 4,447 4,718 4,670 5,002 4,033
 
Revenue 23,697 22,812 22,120 21,386 19,675
Add: Increase (decrease) in deferred revenue and subscriber-related liabilities 26 10 5 14 6
Adjusted revenue 23,723 22,822 22,125 21,400 19,681
Profitability Ratio
OPM3 18.75% 20.67% 21.11% 23.37% 20.49%
Benchmarks
OPM, Competitors4
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2015 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × 4,447 ÷ 23,723 = 18.75%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Time Warner Cable Inc. OPM deteriorated from 2013 to 2014 and from 2014 to 2015.

Turnover of Capital (TO)

Time Warner Cable Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Revenue 23,697 22,812 22,120 21,386 19,675
Add: Increase (decrease) in deferred revenue and subscriber-related liabilities 26 10 5 14 6
Adjusted revenue 23,723 22,822 22,125 21,400 19,681
 
Invested capital1 45,332 44,929 44,327 46,124 44,961
Efficiency Ratio
TO2 0.52 0.51 0.50 0.46 0.44
Benchmarks
TO, Competitors3
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 Invested capital. See details »

2 2015 Calculation
TO = Adjusted revenue ÷ Invested capital
= 23,723 ÷ 45,332 = 0.52

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Time Warner Cable Inc. TO improved from 2013 to 2014 and from 2014 to 2015.

Effective Cash Tax Rate (CTR)

Time Warner Cable Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 3,391 3,745 3,388 3,807 3,328
Add: Cash operating taxes2 1,057 973 1,281 1,194 705
Net operating profit before taxes (NOPBT) 4,447 4,718 4,670 5,002 4,033
Tax Rate
CTR3 23.76% 20.62% 27.44% 23.87% 17.48%
Benchmarks
CTR, Competitors4
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2015 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,057 ÷ 4,447 = 23.76%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Time Warner Cable Inc. CTR decreased from 2013 to 2014 but then slightly increased from 2014 to 2015.