Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Selected Financial Data since 2006
- Operating Profit Margin since 2006
- Return on Equity (ROE) since 2006
- Return on Assets (ROA) since 2006
- Price to Operating Profit (P/OP) since 2006
- Analysis of Debt
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Liquidity Ratios (Summary)
Time Warner Cable Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
The analysis of liquidity ratios over the specified periods reveals distinct trends and fluctuations in the company's short-term financial health.
- Current Ratio
- The current ratio exhibits a general declining trend from March 2011 through December 2013, dropping from 1.46 to 0.41, indicating a reduction in the company's ability to cover current liabilities with current assets during this period. Following this decline, there is a period of minor fluctuations between 0.38 and 0.52 from March 2014 to December 2014, reflecting some instability in liquidity levels. From March 2015 onward, a gradual improvement can be observed, with the ratio increasing to 0.68 by March 2016, suggesting a recovery in the company's current asset coverage of liabilities.
- Quick Ratio
- The quick ratio mirrors the trend observed in the current ratio, starting at 1.33 in March 2011 and decreasing steadily to a low of 0.28 by December 2013. This decline indicates a diminishing capacity to meet short-term obligations without relying on inventory. Post-December 2013, the quick ratio experiences modest volatility within the range of 0.25 to 0.37 until December 2014. A measurable improvement occurs after December 2014, with the ratio increasing to 0.56 by March 2016, implying enhanced liquidity excluding inventory holdings.
- Cash Ratio
- The cash ratio shows a significant downward trajectory over the entire timeframe. Beginning at 1.1 in March 2011, the ratio falls sharply to 0.1 by December 2013, signaling a considerable reduction in cash and cash equivalents relative to current liabilities. Between December 2013 and December 2014, the ratio remains low, fluctuating narrowly between 0.08 and 0.24. Notably, from March 2015 onward, there is a partial recovery, with the ratio rising to 0.34 by March 2016. Despite this improvement, liquidity based on cash reserves remains substantially weaker compared to the initial periods.
Overall, the liquidity positions measured by current, quick, and cash ratios significantly deteriorated from 2011 through the end of 2013, reaching historically low levels. This suggests increasing difficulty in meeting short-term liabilities during that period. The ratios stabilize and show signs of recovery starting in early 2015, indicating efforts to strengthen liquidity, yet levels remain below those seen at the start of the series. The cash ratio's pronounced decline suggests a particular strain on immediately available funds throughout much of the period, an aspect partially alleviated in later quarters.
Current Ratio
Time Warner Cable Inc., current ratio calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q1 2016 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in liquidity over the examined period. Current assets display a cyclical pattern with significant peaks and troughs, while current liabilities generally exhibit an upward trend with some periods of decline.
- Current Assets
- The values for current assets begin at 4,042 million USD in March 2011 and show an increase, reaching a peak of 6,687 million USD in September 2011. Following this peak, current assets decline sharply to 3,888 million USD by March 2012, after which they fluctuate moderately till the end of 2012. In 2013, there is a distinct downward trend with the lowest value observed at 2,144 million USD in December 2013. From 2014 onwards, current assets remain relatively low with minor increases and decreases, ending at 2,619 million USD in March 2016.
- Current Liabilities
- Current liabilities begin at 2,765 million USD in March 2011, rising steadily to 5,370 million USD by December 2011. This is followed by stabilization around high levels in 2012, fluctuating between 5,153 and 5,584 million USD. The year 2013 shows a peak in June at 7,006 million USD, after which liabilities decline to 4,497 million USD by December 2014. From 2015 to early 2016, liabilities slightly decrease and then stabilize around the 3,700 to 3,900 million USD range.
- Current Ratio
- The current ratio, indicative of short-term liquidity, starts above 1.4 in early 2011, reflecting comfortable liquidity. However, it declines throughout 2011 and sharply drops below 1.0 by March 2012, indicating that current liabilities surpass current assets. The ratio continues to deteriorate into 2013, reaching its lowest point at 0.41 in December 2013. A moderate recovery is noted from 2014 onwards, with the ratio improving to 0.68 by March 2016, but remaining below the ideal threshold of 1.0.
Overall, the data highlights significant liquidity pressures through the period, especially from 2012 to 2014 when current liabilities outweighed current assets substantially, as confirmed by the low current ratios. Although there is evidence of gradual improvement in liquidity starting in 2014, the current ratio remains below 1.0, signaling continued short-term financial constraints.
Quick Ratio
Time Warner Cable Inc., quick ratio calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | ||||||||||||||||||||||||||||
| Short-term investments in U.S. Treasury securities | ||||||||||||||||||||||||||||
| Receivables, less allowances | ||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q1 2016 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations and trends in liquidity over the observed periods. Total quick assets demonstrate considerable variability, with peaks and troughs suggesting periods of both strengthening and weakening liquid resources.
- Total quick assets
- From March 2011 to December 2011, total quick assets rose sharply, reaching a high of 6,281 million US dollars in September 2011, before declining toward the year-end. In 2012, these assets fluctuated moderately around the 3,000 to 4,700 million range, with a peak in September 2012. However, beginning in 2013, total quick assets exhibited a downward trend, reaching as low as 1,479 million at year-end 2013. Subsequent quarters show some recovery, albeit remaining relatively low compared to earlier years, with values generally staying below 2,100 million through to the first quarter of 2016.
- Current liabilities
- Current liabilities increased notably from 2,765 million in March 2011, peaking at 7,006 million in June 2013. After this peak, there was a general decline in current liabilities, trending downwards through 2014 and stabilizing around the 3,800 to 4,200 million range by 2015 and the first quarter of 2016. This suggests an initial increase in short-term obligations followed by a concerted effort to reduce liabilities over the latter periods.
- Quick ratio
- The quick ratio reflects the relationship between liquid assets and current liabilities and displays a clear downward trajectory from 2011 through 2013. Starting above 1.3 in early 2011, the ratio decreased steadily, falling below 0.3 by late 2013, indicating diminished liquidity relative to short-term liabilities. Although there is a slight improvement in the quick ratio post-2013, rising to around 0.5 by the first quarter of 2016, it remains well below the 1.0 threshold, signaling potential liquidity challenges.
Overall, the data illustrates a decline in liquidity over the period, with quick assets decreasing and current liabilities initially rising before moderating. The quick ratio's fall below 1.0—and its sustained low levels—suggests that liquid assets have been insufficient to cover current liabilities for most of the observed timeframe. The modest recovery in liquidity ratios toward the end of the period may indicate improving short-term financial stability, but the company appears to have faced liquidity pressure throughout these years.
Cash Ratio
Time Warner Cable Inc., cash ratio calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | ||||||||||||||||||||||||||||
| Short-term investments in U.S. Treasury securities | ||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q1 2016 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibited significant fluctuations over the analyzed periods. Starting at 3,033 million US dollars in the first quarter of 2011, the value increased and peaked at 5,573 million by the third quarter of the same year. Subsequently, there was a downward trend, with cash assets declining to as low as 403 million in the second quarter of 2014. After this trough, cash assets showed some recovery, reaching 1,297 million by the first quarter of 2016. The pattern demonstrates notable volatility, including a marked drop after 2011, followed by partial recovery toward the end of the period.
- Current Liabilities
- Current liabilities displayed a different trend, with an overall rising pattern from 2,765 million in the first quarter of 2011 to a peak of 7,006 million in the second quarter of 2013. After this peak, the liabilities generally trended downward, settling around 3,853 million by the first quarter of 2016. This indicates a period of increasing short-term obligations early in the timeline followed by a gradual reduction in such liabilities during the later periods.
- Cash Ratio
- The cash ratio mirrored the trends observed in cash assets and current liabilities. Initially, the ratio was relatively high, oscillating slightly above 1.0, indicating strong short-term liquidity at the beginning of 2011. Subsequently, the ratio sharply decreased to as low as 0.08 in the second quarter of 2014, reflecting a weakening ability to cover current liabilities with cash and cash equivalents. From that low point, the cash ratio gradually improved, reaching 0.34 by the first quarter of 2016. Overall, the ratio suggests a period of declining liquidity, with signs of recovery toward the end of the series.
- Summary of Trends
- The data suggests that the company experienced substantial volatility in liquidity during the five-year span. The early period was marked by strong liquidity positions and lower relative liabilities, which deteriorated over the subsequent years as current liabilities increased and cash assets declined. The lowest liquidity point occurred around mid-2014. However, from this nadir, there was a modest recovery in liquidity ratios and cash balances up to early 2016. The trends reflect a shift in the company’s working capital management and financial flexibility, signaling potential challenges in short-term asset availability relative to obligations during the mid-period, followed by cautious improvement.