Stock Analysis on Net
Stock Analysis on Net

Time Warner Inc. (NYSE:TWX)

This company has been moved to the archive! The financial data has not been updated since April 26, 2018.

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Time Warner Inc., adjustment to net income attributable to Time Warner Inc. shareholders

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net income attributable to Time Warner Inc. shareholders (as reported) 5,247 3,926 3,833 3,827 3,691
Add: Change in securities 2 — 1 (14) 13
Net income attributable to Time Warner Inc. shareholders (adjusted) 5,249 3,926 3,834 3,813 3,704

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Time Warner Inc., adjusted profitability ratios

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net Profit Margin
Reported net profit margin 16.78% 13.39% 13.63% 13.99% 12.39%
Adjusted net profit margin 16.79% 13.39% 13.64% 13.94% 12.43%
Return on Equity (ROE)
Reported ROE 18.49% 16.13% 16.23% 15.64% 12.34%
Adjusted ROE 18.50% 16.13% 16.23% 15.58% 12.39%
Return on Assets (ROA)
Reported ROA 7.58% 5.95% 6.00% 6.05% 5.43%
Adjusted ROA 7.58% 5.95% 6.00% 6.03% 5.45%

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
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Time Warner Inc. adjusted net profit margin ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Time Warner Inc. adjusted ROE deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Time Warner Inc. adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Time Warner Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
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%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Time Warner Inc. shareholders 5,249 3,926 3,834 3,813 3,704
Revenues 31,271 29,318 28,118 27,359 29,795
Profitability Ratio
Adjusted net profit margin2 16.79% 13.39% 13.64% 13.94% 12.43%

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).

2017 Calculations

1 Net profit margin = 100 × Net income attributable to Time Warner Inc. shareholders ÷ Revenues
= 100 × 5,247 ÷ 31,271 = 16.78%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Time Warner Inc. shareholders ÷ Revenues
= 100 × 5,249 ÷ 31,271 = 16.79%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Time Warner Inc. adjusted net profit margin ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
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%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Time Warner Inc. shareholders 5,249 3,926 3,834 3,813 3,704
Total Time Warner Inc. shareholders’ equity 28,375 24,335 23,619 24,476 29,904
Profitability Ratio
Adjusted ROE2 18.50% 16.13% 16.23% 15.58% 12.39%

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).

2017 Calculations

1 ROE = 100 × Net income attributable to Time Warner Inc. shareholders ÷ Total Time Warner Inc. shareholders’ equity
= 100 × 5,247 ÷ 28,375 = 18.49%

2 Adjusted ROE = 100 × Adjusted net income attributable to Time Warner Inc. shareholders ÷ Total Time Warner Inc. shareholders’ equity
= 100 × 5,249 ÷ 28,375 = 18.50%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Time Warner Inc. adjusted ROE deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
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%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Time Warner Inc. shareholders 5,249 3,926 3,834 3,813 3,704
Total assets 69,209 65,966 63,848 63,259 67,994
Profitability Ratio
Adjusted ROA2 7.58% 5.95% 6.00% 6.03% 5.45%

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).

2017 Calculations

1 ROA = 100 × Net income attributable to Time Warner Inc. shareholders ÷ Total assets
= 100 × 5,247 ÷ 69,209 = 7.58%

2 Adjusted ROA = 100 × Adjusted net income attributable to Time Warner Inc. shareholders ÷ Total assets
= 100 × 5,249 ÷ 69,209 = 7.58%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Time Warner Inc. adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.