Debt to Equity
since 2006
Calculation
Time Warner Cable Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current maturities1 | ÷ | Total TWC shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 2.50 | = | 22,502) | ÷ | 8,995) |
| Dec 31, 2014 | 2.96 | = | 23,718) | ÷ | 8,013) |
| Dec 31, 2013 | 3.61 | = | 25,052) | ÷ | 6,943) |
| Dec 31, 2012 | 3.67 | = | 26,689) | ÷ | 7,279) |
| Dec 31, 2011 | 3.51 | = | 26,442) | ÷ | 7,530) |
| Dec 31, 2010 | 2.51 | = | 23,121) | ÷ | 9,210) |
| Dec 31, 2009 | 2.57 | = | 22,331) | ÷ | 8,685) |
| Dec 31, 2008 | 1.03 | = | 17,727) | ÷ | 17,164) |
| Dec 31, 2007 | 0.55 | = | 13,577) | ÷ | 24,706) |
| Dec 31, 2006 | 0.61 | = | 14,428) | ÷ | 23,564) |
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 financial structure between 2006 and 2015 was characterized by a significant increase in leverage, driven by a simultaneous rise in long-term debt and a substantial contraction in shareholders' equity during the middle of the period.
- Long-term Debt Evolution
- Debt levels exhibited a period of aggressive growth starting in 2008. After a slight decrease from 14,428 million US$ in 2006 to 13,577 million US$ in 2007, long-term debt climbed steadily, reaching a peak of 26,689 million US$ in 2012. A gradual deleveraging trend followed this peak, with total debt decreasing to 22,502 million US$ by the end of 2015.
- Shareholders' Equity Trends
- Equity experienced a severe downward trajectory beginning in 2008. From a peak of 24,706 million US$ in 2007, shareholders' equity declined sharply to a low of 6,943 million US$ in 2013. A modest recovery was observed in the final two years of the period, with equity rising to 8,995 million US$ by December 31, 2015.
- Debt to Equity Ratio Analysis
- The debt to equity ratio provides a clear indication of the increasing financial risk profile over the decade. The ratio remained conservative in 2006 and 2007, at 0.61 and 0.55 respectively. However, the combination of escalating debt and eroding equity led to a sharp increase in the ratio, which peaked at 3.67 in 2012. Although the ratio improved to 2.50 by 2015 due to debt reduction and equity recovery, the capital structure remained substantially more leveraged than it was at the start of the analyzed period.
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Comparison to Competitors
Time Warner Cable Inc., debt to equity, 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 | 2.50 | 0.04 | 1.01 | 0.00 | 1.07 | 0.39 |
| Dec 31, 2014 | 2.96 | 0.05 | 0.92 | 0.01 | 0.48 | 0.33 |
| Dec 31, 2013 | 3.61 | 0.06 | 0.94 | 0.03 | 0.37 | 0.31 |
| Dec 31, 2012 | 3.67 | 0.08 | 0.82 | 0.20 | 0.54 | 0.36 |
| Dec 31, 2011 | 3.51 | 0.07 | 0.83 | — | 0.62 | 0.37 |
| Dec 31, 2010 | 2.51 | 0.07 | 0.71 | — | 0.69 | 0.33 |
| Dec 31, 2009 | 2.57 | 0.00 | 0.68 | — | 1.00 | 0.38 |
| Dec 31, 2008 | 1.03 | 0.00 | 0.80 | — | 0.00 | 0.45 |
| Dec 31, 2007 | 0.55 | 0.00 | 0.76 | — | 0.00 | 0.49 |
| Dec 31, 2006 | 0.61 | 0.00 | 0.70 | — | 0.00 | 0.43 |
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., debt to equity, long-term trends, comparison to sector (media & entertainment)
| Time Warner Cable Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2015 | 2.50 | 0.29 |
| Dec 31, 2014 | 2.96 | 0.29 |
| Dec 31, 2013 | 3.61 | 0.34 |
| Dec 31, 2012 | 3.67 | 0.36 |
| Dec 31, 2011 | 3.51 | 0.40 |
| Dec 31, 2010 | 2.51 | 0.37 |
| Dec 31, 2009 | 2.57 | 0.37 |
| Dec 31, 2008 | 1.03 | 0.46 |
| Dec 31, 2007 | 0.55 | 0.49 |
| Dec 31, 2006 | 0.61 | 0.47 |
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., debt to equity, long-term trends, comparison to industry (communication services)
| Time Warner Cable Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2015 | 2.50 | 0.81 |
| Dec 31, 2014 | 2.96 | 0.81 |
| Dec 31, 2013 | 3.61 | 0.75 |
| Dec 31, 2012 | 3.67 | 0.62 |
| Dec 31, 2011 | 3.51 | 0.62 |
| Dec 31, 2010 | 2.51 | 0.60 |
| Dec 31, 2009 | 2.57 | 0.69 |
| Dec 31, 2008 | 1.03 | 0.73 |
| Dec 31, 2007 | 0.55 | 0.54 |
| Dec 31, 2006 | 0.61 | 0.54 |
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).