Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Time Warner Inc., liquidity ratios
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.08 | 1.39 | 1.56 | 1.43 | 1.53 | |
| Quick ratio | 0.85 | 1.06 | 1.20 | 1.12 | 1.16 | |
| Cash ratio | 0.19 | 0.16 | 0.27 | 0.28 | 0.22 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Time Warner Inc. current ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Time Warner Inc. quick ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Time Warner Inc. cash ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Current Ratio
Time Warner Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 15,219) | 13,485) | 12,513) | 13,180) | 12,844) | |
| Current liabilities | 14,077) | 9,703) | 8,002) | 9,204) | 8,383) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.08 | 1.39 | 1.56 | 1.43 | 1.53 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2017 Calculation
Current ratio = Current assets ÷ Current liabilities
= 15,219 ÷ 14,077 = 1.08
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Time Warner Inc. current ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Quick Ratio
Time Warner Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 2,621) | 1,539) | 2,155) | 2,618) | 1,862) | |
| Receivables, less allowances | 9,401) | 8,699) | 7,411) | 7,720) | 7,868) | |
| Total quick assets | 12,022) | 10,238) | 9,566) | 10,338) | 9,730) | |
| Current liabilities | 14,077) | 9,703) | 8,002) | 9,204) | 8,383) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.85 | 1.06 | 1.20 | 1.12 | 1.16 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2017 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 12,022 ÷ 14,077 = 0.85
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Time Warner Inc. quick ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Cash Ratio
Time Warner Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 2,621) | 1,539) | 2,155) | 2,618) | 1,862) | |
| Total cash assets | 2,621) | 1,539) | 2,155) | 2,618) | 1,862) | |
| Current liabilities | 14,077) | 9,703) | 8,002) | 9,204) | 8,383) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.19 | 0.16 | 0.27 | 0.28 | 0.22 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2017 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,621 ÷ 14,077 = 0.19
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Time Warner Inc. cash ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |