Time Warner Cable Inc. (NYSE:TWC)

The financial data presents a clear evolution of the company's capital structure and leverage over a ten-year period. Several notable trends can be observed in key metrics such as long-term debt, shareholders' equity, and the debt-to-equity ratio.

Long-term Debt

Long-term debt, including current maturities, exhibited an overall increasing trend from 2006 through 2012, rising from approximately $14.4 billion to a peak near $26.7 billion. Following this peak, debt levels gradually declined, reaching about $22.5 billion by the end of 2015. The initial rise suggests a phase of increased borrowing, potentially to finance expansion, restructuring, or other capital-intensive activities, while the subsequent gradual reduction could indicate efforts towards debt repayment or deleveraging.

Total Shareholders’ Equity

Shareholders’ equity showed a more volatile pattern. Beginning with a relatively high base of approximately $23.6 billion in 2006, equity remained steady through 2007 but then declined sharply over the next two years, reaching a low near $8.7 billion in 2009. After this significant drop, equity levels fluctuated slightly without full recovery, hovering between roughly $6.9 billion and $9.0 billion through 2015. This volatility might be attributed to accumulated losses, write-downs, or dividend distributions, contributing to the decline in net assets available to shareholders.

Debt to Equity Ratio

The debt-to-equity ratio accentuates the shifts in capital structure. Initially below 1 (0.61 in 2006), indicating more equity than debt, this ratio increased substantially, surpassing 2.5 by 2009 and peaking above 3.6 in 2012. Such levels reflect a highly leveraged position, with debt more than three times shareholders’ equity. Following 2012, the ratio trended downward, decreasing to 2.5 by 2015. This decline aligns with the reduction in debt and attempts to stabilize or improve the capital structure, although leverage remained elevated compared to the starting period.

Overall, the data indicates a period marked by increasing leverage and declining equity in the middle years, followed by moderate deleveraging toward the end of the period analyzed. The company experienced significant changes in its financial risk profile, reflected by the sharp rise and eventual partial reduction in debt-to-equity ratio. Monitoring these trends is essential for understanding the company's financial stability and risk exposure.