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Time Warner Operating Income

: $7,741 Mil (TTM As of Mar. 2018)
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Time Warner's Operating Income for the three months ended in Mar. 2018 was $1,834 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2018 was $7,741 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Time Warner's Operating Income for the three months ended in Mar. 2018 was $1,834 Mil. Time Warner's Revenue for the three months ended in Mar. 2018 was $7,996 Mil. Therefore, Time Warner's Operating Margin % for the quarter that ended in Mar. 2018 was 22.94%.

Time Warner's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Time Warner's annualized ROC % for the quarter that ended in Mar. 2018 was 13.14%. Time Warner's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2018 was 101.91%.


Time Warner Operating Income Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Time Warner Annual Data
Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6,383.00 6,092.00 6,951.00 7,629.00 7,989.00

Time Warner Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,086.00 1,652.00 2,244.00 2,011.00 1,834.00

Time Warner Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2018 was 1652 (Jun. 2017 ) + 2244 (Sep. 2017 ) + 2011 (Dec. 2017 ) + 1834 (Mar. 2018 ) = $7,741 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Time Warner  (NYSE:TWX) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Time Warner's annualized ROC % for the quarter that ended in Mar. 2018 is calculated as:

ROC % (Q: Mar. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2017 ) + Invested Capital (Q: Mar. 2018 ))/ count )
=7336 * ( 1 - -8.74% )/( (61343 + 60113)/ 2 )
=7977.1664/60728
=13.14 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2018) data.

2. Joel Greenblatt's definition of Return on Capital:

Time Warner's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2018 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2018 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2017  Q: Mar. 2018
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=7060/( ( (2707 + max(3971, 0)) + (2753 + max(4424, 0)) )/ 2 )
=7060/( ( 6678 + 7177 )/ 2 )
=7060/6927.5
=101.91 %

where Working Capital is:

Working Capital(Q: Dec. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9401 + 2401 + 796) - (6724 + 711 + 1192)
=3971

Working Capital(Q: Mar. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10279 + 2071 + 1097) - (7193 + 1002 + 828)
=4424

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2018) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Time Warner's Operating Margin % for the quarter that ended in Mar. 2018 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2018 )/Revenue (Q: Mar. 2018 )
=1834/7996
=22.94 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Time Warner Operating Income Related Terms


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