On Jan. 31, entertainment and information powerhouse -- and Motley Fool Stock Advisor pick -- Time Warner
- Shareholders must be happy about the generous share-buyback program. Time Warner repurchased $16.4 billion of its own stock in 2006, and it expects to buy another $3.6 billion in the first half of 2007.
- However, the company is taking on debt to balance that expense, Long-term debt has increased a whopping 73% over the past year.
- See our full analysis of Time Warner's quarter.
- Time Warner is currently rated a three-star stock in the Motley Fool CAPS community. Add your opinion to the database by joining the service for free.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$12,466 |
$11,523 |
8.2% |
|
Net Profit |
$1,753 |
$1,304 |
34.4% |
|
EPS |
$0.44 |
$0.28 |
57.1% |
|
Diluted Shares |
4,006 |
4,672 |
(14.3%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
41.5% |
42.7% |
(1.2) |
|
Operating Margin |
16.9% |
17.7% |
(0.8) |
|
Net Margin |
14.1% |
11.3% |
2.7 |
Margins are the earnings engine. See how they work.
Management Effectiveness
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Return on Assets |
5.3% |
4.2% |
1.1 |
|
Return on Equity |
11.5% |
8.1% |
3.4 |
See how management puts its financial tools to work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Investments |
$1,549 |
$4,220 |
(63.3%) |
|
Accounts Receivable |
$6,151 |
$6,523 |
(5.7%) |
|
Inventory |
$1,913 |
$2,041 |
(6.3%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$4,629 |
$4,532 |
2.1% |
|
Long-Term Debt |
$34,933 |
$20,238 |
72.6% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Cash From Operations |
$2,028 |
($640) |
N/A |
|
Capital Expenditures |
$1408 |
$951 |
60.4% |
|
Free Cash Flow |
$738 |
$717 |
2.9% |
Find out why Fools always follow the money.
Cash Conversion Checkup
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
22.7 |
25.6 |
(2.9) |
|
Days in Receivables |
43.0 |
46.0 |
(3.0) |
|
Days Payables Outstanding |
54.6 |
61.5 |
(6.9) |
|
Cash Conversion Cycle |
11.1 |
10.1 |
1.0 |
Read up on cash conversion metrics.
Related Companies:
-
Sony
(NYSE:SNE) -
Walt Disney
(NYSE:DIS) -
Comcast
(NASDAQ:CMCSA) -
Viacom
(NYSE:VIA-B) -
Time Warner Telecom
(NASDAQ:TWTC)
Related Foolishness:
- Led Zeppelin, Financial Gurus
- When Greed Is Good
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- Foolish Fundamentals: The Income Statement
Time Warner and Disney are two of the stocks recommended in the pages of our Motley Fool Stock Advisor newsletter. Find out more with a free 30-day trial.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund was a Disney shareholder but had no other position in any company mentioned. Fool rules are here.
