Stock Analysis on Net
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.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Time Warner Cable Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Federal 444 363 631 495 69
State 107 98 91 120 88
Current 551 461 722 615 157
Federal 525 681 411 634 843
State 68 75 (48) (72) (205)
Deferred 593 756 363 562 638
Income tax provision 1,144 1,217 1,085 1,177 795

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Time Warner Cable Inc. current decreased from 2013 to 2014 but then slightly increased from 2014 to 2015.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Time Warner Cable Inc. deferred increased from 2013 to 2014 but then slightly decreased from 2014 to 2015.
Income tax provision Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Time Warner Cable Inc. income tax provision increased from 2013 to 2014 but then slightly decreased from 2014 to 2015 not reaching 2013 level.

Effective Income Tax Rate (EITR)

Time Warner Cable Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
U.S. federal statutory income tax rate 35.00% 35.00% 35.00% 35.00% 35.00%
Effective tax rate 38.29% 37.47% 35.70% 35.28% 32.29%

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).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Time Warner Cable Inc. effective tax rate increased from 2013 to 2014 and from 2014 to 2015.

Components of Deferred Tax Assets and Liabilities

Time Warner Cable Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Net operating loss carryforwards 24 92 202 322 67
Tax credit carryforwards 32 31 32 36 37
Other 604 511 494 470 680
Deferred income tax assets, gross 660 634 728 828 784
Valuation allowances (23) (28) (28) (18) (67)
Deferred income tax assets 637 606 700 810 717
Cable franchise rights and customer relationships, net (8,627) (8,298) (7,979) (7,675) (6,698)
Property, plant and equipment (4,740) (4,466) (4,157) (4,081) (3,941)
Other (100) (133) (328) (17) (9)
Deferred income tax liabilities (13,467) (12,897) (12,464) (11,773) (10,648)
Deferred income tax assets (liabilities), net (12,830) (12,291) (11,764) (10,963) (9,931)

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).

Item Description The company
Deferred income tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Time Warner Cable Inc. deferred income tax assets, gross decreased from 2013 to 2014 but then slightly increased from 2014 to 2015.
Deferred income tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Time Warner Cable Inc. deferred income tax assets decreased from 2013 to 2014 but then slightly increased from 2014 to 2015.
Deferred income tax assets (liabilities), net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Time Warner Cable Inc. deferred income tax assets (liabilities), net decreased from 2013 to 2014 and from 2014 to 2015.

Deferred Tax Assets and Liabilities, Classification

Time Warner Cable Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Current deferred income tax assets — 269 334 317 267
Noncurrent deferred income tax liabilities 12,830 12,560 12,098 11,280 10,198

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).

Item Description The company
Noncurrent deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Time Warner Cable Inc. noncurrent deferred income tax liabilities increased from 2013 to 2014 and from 2014 to 2015.

Adjustments to Financial Statements: Removal of Deferred Taxes

Time Warner Cable Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Adjustment to Current Assets
Current assets (as reported) 2,459 2,316 2,144 4,877 6,398
Less: Current deferred tax assets, net — 269 334 317 267
Current assets (adjusted) 2,459 2,047 1,810 4,560 6,131
Adjustment to Total Assets
Total assets (as reported) 49,277 48,501 48,273 49,809 48,276
Less: Current deferred tax assets, net — 269 334 317 267
Total assets (adjusted) 49,277 48,232 47,939 49,492 48,009
Adjustment to Total Liabilities
Total liabilities (as reported) 40,278 40,484 41,326 42,526 40,739
Less: Noncurrent deferred tax liabilities, net 12,830 12,560 12,098 11,280 10,198
Total liabilities (adjusted) 27,448 27,924 29,228 31,246 30,541
Adjustment to Total TWC Shareholders’ Equity
Total TWC shareholders’ equity (as reported) 8,995 8,013 6,943 7,279 7,530
Less: Net deferred tax assets (liabilities) (12,830) (12,291) (11,764) (10,963) (9,931)
Total TWC shareholders’ equity (adjusted) 21,825 20,304 18,707 18,242 17,461
Adjustment to Net Income Attributable To TWC Shareholders
Net income attributable to TWC shareholders (as reported) 1,844 2,031 1,954 2,155 1,665
Add: Deferred income tax expense (benefit) 593 756 363 562 638
Net income attributable to TWC shareholders (adjusted) 2,437 2,787 2,317 2,717 2,303

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).

Time Warner Cable Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Time Warner Cable Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Current Ratio
Reported current ratio 0.62 0.52 0.41 0.92 1.19
Adjusted current ratio 0.62 0.46 0.35 0.86 1.14
Net Profit Margin
Reported net profit margin 7.78% 8.90% 8.83% 10.08% 8.46%
Adjusted net profit margin 10.28% 12.22% 10.47% 12.70% 11.71%
Total Asset Turnover
Reported total asset turnover 0.48 0.47 0.46 0.43 0.41
Adjusted total asset turnover 0.48 0.47 0.46 0.43 0.41
Financial Leverage
Reported financial leverage 5.48 6.05 6.95 6.84 6.41
Adjusted financial leverage 2.26 2.38 2.56 2.71 2.75
Return on Equity (ROE)
Reported ROE 20.50% 25.35% 28.14% 29.61% 22.11%
Adjusted ROE 11.17% 13.73% 12.39% 14.89% 13.19%
Return on Assets (ROA)
Reported ROA 3.74% 4.19% 4.05% 4.33% 3.45%
Adjusted ROA 4.95% 5.78% 4.83% 5.49% 4.80%

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).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Time Warner Cable Inc. adjusted current ratio improved from 2013 to 2014 and from 2014 to 2015.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Time Warner Cable Inc. adjusted net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Time Warner Cable Inc. adjusted total asset turnover ratio improved from 2013 to 2014 and from 2014 to 2015.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Time Warner Cable Inc. adjusted financial leverage ratio decreased from 2013 to 2014 and from 2014 to 2015.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Time Warner Cable Inc. adjusted ROE improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Time Warner Cable Inc. adjusted ROA improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level.

Time Warner Cable Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Current assets 2,459 2,316 2,144 4,877 6,398
Current liabilities 3,949 4,497 5,226 5,325 5,370
Liquidity Ratio
Current ratio1 0.62 0.52 0.41 0.92 1.19
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 2,459 2,047 1,810 4,560 6,131
Current liabilities 3,949 4,497 5,226 5,325 5,370
Liquidity Ratio
Adjusted current ratio2 0.62 0.46 0.35 0.86 1.14

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).

2015 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 2,459 ÷ 3,949 = 0.62

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 2,459 ÷ 3,949 = 0.62

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Time Warner Cable Inc. adjusted current ratio improved from 2013 to 2014 and from 2014 to 2015.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to TWC shareholders 1,844 2,031 1,954 2,155 1,665
Revenue 23,697 22,812 22,120 21,386 19,675
Profitability Ratio
Net profit margin1 7.78% 8.90% 8.83% 10.08% 8.46%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to TWC shareholders 2,437 2,787 2,317 2,717 2,303
Revenue 23,697 22,812 22,120 21,386 19,675
Profitability Ratio
Adjusted net profit margin2 10.28% 12.22% 10.47% 12.70% 11.71%

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).

2015 Calculations

1 Net profit margin = 100 × Net income attributable to TWC shareholders ÷ Revenue
= 100 × 1,844 ÷ 23,697 = 7.78%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to TWC shareholders ÷ Revenue
= 100 × 2,437 ÷ 23,697 = 10.28%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Time Warner Cable Inc. adjusted net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Revenue 23,697 22,812 22,120 21,386 19,675
Total assets 49,277 48,501 48,273 49,809 48,276
Activity Ratio
Total asset turnover1 0.48 0.47 0.46 0.43 0.41
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue 23,697 22,812 22,120 21,386 19,675
Adjusted total assets 49,277 48,232 47,939 49,492 48,009
Activity Ratio
Adjusted total asset turnover2 0.48 0.47 0.46 0.43 0.41

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).

2015 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 23,697 ÷ 49,277 = 0.48

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 23,697 ÷ 49,277 = 0.48

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Time Warner Cable Inc. adjusted total asset turnover ratio improved from 2013 to 2014 and from 2014 to 2015.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Total assets 49,277 48,501 48,273 49,809 48,276
Total TWC shareholders’ equity 8,995 8,013 6,943 7,279 7,530
Solvency Ratio
Financial leverage1 5.48 6.05 6.95 6.84 6.41
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 49,277 48,232 47,939 49,492 48,009
Adjusted total TWC shareholders’ equity 21,825 20,304 18,707 18,242 17,461
Solvency Ratio
Adjusted financial leverage2 2.26 2.38 2.56 2.71 2.75

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).

2015 Calculations

1 Financial leverage = Total assets ÷ Total TWC shareholders’ equity
= 49,277 ÷ 8,995 = 5.48

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total TWC shareholders’ equity
= 49,277 ÷ 21,825 = 2.26

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Time Warner Cable Inc. adjusted financial leverage ratio decreased from 2013 to 2014 and from 2014 to 2015.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to TWC shareholders 1,844 2,031 1,954 2,155 1,665
Total TWC shareholders’ equity 8,995 8,013 6,943 7,279 7,530
Profitability Ratio
ROE1 20.50% 25.35% 28.14% 29.61% 22.11%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to TWC shareholders 2,437 2,787 2,317 2,717 2,303
Adjusted total TWC shareholders’ equity 21,825 20,304 18,707 18,242 17,461
Profitability Ratio
Adjusted ROE2 11.17% 13.73% 12.39% 14.89% 13.19%

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).

2015 Calculations

1 ROE = 100 × Net income attributable to TWC shareholders ÷ Total TWC shareholders’ equity
= 100 × 1,844 ÷ 8,995 = 20.50%

2 Adjusted ROE = 100 × Adjusted net income attributable to TWC shareholders ÷ Adjusted total TWC shareholders’ equity
= 100 × 2,437 ÷ 21,825 = 11.17%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Time Warner Cable Inc. adjusted ROE improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to TWC shareholders 1,844 2,031 1,954 2,155 1,665
Total assets 49,277 48,501 48,273 49,809 48,276
Profitability Ratio
ROA1 3.74% 4.19% 4.05% 4.33% 3.45%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to TWC shareholders 2,437 2,787 2,317 2,717 2,303
Adjusted total assets 49,277 48,232 47,939 49,492 48,009
Profitability Ratio
Adjusted ROA2 4.95% 5.78% 4.83% 5.49% 4.80%

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).

2015 Calculations

1 ROA = 100 × Net income attributable to TWC shareholders ÷ Total assets
= 100 × 1,844 ÷ 49,277 = 3.74%

2 Adjusted ROA = 100 × Adjusted net income attributable to TWC shareholders ÷ Adjusted total assets
= 100 × 2,437 ÷ 49,277 = 4.95%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Time Warner Cable Inc. adjusted ROA improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level.