Current Ratio
since 2006
Calculation
Time Warner Cable Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 0.62 | = | 2,459) | ÷ | 3,949) |
| Dec 31, 2014 | 0.52 | = | 2,316) | ÷ | 4,497) |
| Dec 31, 2013 | 0.41 | = | 2,144) | ÷ | 5,226) |
| Dec 31, 2012 | 0.92 | = | 4,877) | ÷ | 5,325) |
| Dec 31, 2011 | 1.19 | = | 6,398) | ÷ | 5,370) |
| Dec 31, 2010 | 1.41 | = | 4,340) | ÷ | 3,086) |
| Dec 31, 2009 | 0.71 | = | 2,102) | ÷ | 2,958) |
| Dec 31, 2008 | 2.32 | = | 6,659) | ÷ | 2,873) |
| Dec 31, 2007 | 0.46 | = | 1,163) | ÷ | 2,536) |
| Dec 31, 2006 | 0.37 | = | 910) | ÷ | 2,490) |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
1 US$ in millions
The liquidity position from 2006 to 2015 demonstrates substantial volatility, with the current ratio fluctuating between extreme lows and a singular period of high liquidity. For the majority of the observed timeframe, the company maintained a current ratio below 1.0, suggesting a persistent trend where short-term obligations exceeded available liquid assets.
- Liquidity Peaks and Troughs
- A significant anomaly occurred in 2008, where the current ratio spiked to 2.32, the highest recorded in the period. This was driven by a surge in current assets to 6,659 million US dollars. This position was short-lived, as the ratio dropped sharply to 0.71 by 2009, coinciding with a reduction in current assets to 2,102 million US dollars.
- Liability Expansion and Impact
- Current liabilities remained relatively stable between 2.49 billion and 3.09 billion US dollars from 2006 to 2010. A notable increase occurred in 2011, with liabilities reaching a peak of 5,370 million US dollars. This expansion of short-term debt contributed to a subsequent deterioration of the current ratio, which fell below the 1.0 threshold by 2012 and reached a period low of 0.41 in 2013.
- Closing Liquidity Trend
- Between 2012 and 2015, the current ratio remained consistently low, fluctuating between 0.41 and 0.62. While a marginal recovery is observed from 2013 to 2015, the final ratio of 0.62 indicates that current liabilities continued to significantly outweigh current assets, reflecting a liquidity profile similar to that observed at the beginning of the analysis period.
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Comparison to Competitors
Time Warner Cable Inc., current ratio, long-term trends, comparison to competitors
| Time Warner Cable Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2015 | 0.62 | 4.67 | 0.68 | 11.25 | 1.54 | 1.03 |
| Dec 31, 2014 | 0.52 | 4.80 | 0.78 | 9.60 | 1.48 | 1.14 |
| Dec 31, 2013 | 0.41 | 4.58 | 0.74 | 11.88 | 1.42 | 1.21 |
| Dec 31, 2012 | 0.92 | 4.22 | 1.20 | 10.71 | 1.34 | 1.07 |
| Dec 31, 2011 | 1.19 | 5.92 | 0.65 | — | 1.49 | 1.14 |
| Dec 31, 2010 | 1.41 | 4.16 | 1.08 | — | 1.65 | 1.11 |
| Dec 31, 2009 | 0.71 | 10.62 | 0.44 | — | 1.82 | 1.33 |
| Dec 31, 2008 | 2.32 | 8.77 | 0.42 | — | 1.67 | 1.01 |
| Dec 31, 2007 | 0.46 | 8.49 | 0.46 | — | 1.96 | 0.99 |
| Dec 31, 2006 | 0.37 | 10.00 | 0.70 | — | 2.21 | 0.94 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
Comparison to Sector (Media & Entertainment)
Time Warner Cable Inc., current ratio, long-term trends, comparison to sector (media & entertainment)
| Time Warner Cable Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2015 | 0.62 | 2.47 |
| Dec 31, 2014 | 0.52 | 2.46 |
| Dec 31, 2013 | 0.41 | 2.35 |
| Dec 31, 2012 | 0.92 | 2.31 |
| Dec 31, 2011 | 1.19 | 2.17 |
| Dec 31, 2010 | 1.41 | 2.14 |
| Dec 31, 2009 | 0.71 | 2.33 |
| Dec 31, 2008 | 2.32 | 1.56 |
| Dec 31, 2007 | 0.46 | 1.51 |
| Dec 31, 2006 | 0.37 | 1.47 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
Comparison to Industry (Communication Services)
Time Warner Cable Inc., current ratio, long-term trends, comparison to industry (communication services)
| Time Warner Cable Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2015 | 0.62 | 1.45 |
| Dec 31, 2014 | 0.52 | 1.61 |
| Dec 31, 2013 | 0.41 | 1.90 |
| Dec 31, 2012 | 0.92 | 1.44 |
| Dec 31, 2011 | 1.19 | 1.35 |
| Dec 31, 2010 | 1.41 | 1.12 |
| Dec 31, 2009 | 0.71 | 1.08 |
| Dec 31, 2008 | 2.32 | 0.93 |
| Dec 31, 2007 | 0.46 | 0.89 |
| Dec 31, 2006 | 0.37 | 0.83 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).