Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
Time Warner Cable Inc. pages available for free this week:
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Operating Profit Margin since 2006
- Current Ratio since 2006
- Debt to Equity since 2006
- Total Asset Turnover since 2006
- Price to Operating Profit (P/OP) since 2006
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Time Warner Cable Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
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).
- Liquidity Ratios Overview
- The company’s liquidity ratios over the observed quarters reveal notable fluctuations with general trends reflecting changes in short-term financial health and cash management. These ratios include the current ratio, quick ratio, and cash ratio, each providing insights into the company’s ability to meet short-term obligations.
- Current Ratio
- The current ratio exhibited a declining trend from the beginning of the period, starting at 0.7 and increasing to a peak of 0.97 by the third quarter of 2012. Subsequently, it generally declined, reaching a low of 0.38 in the second quarter of 2014. After this period, it showed some recovery, closing at 0.68 in the first quarter of 2016. Despite this recovery, the ratio remained below 1 throughout, indicating the company consistently had fewer current assets than current liabilities.
- Quick Ratio
- The quick ratio followed a pattern similar to the current ratio but maintained slightly lower values, consistent with its exclusion of inventory from current assets. It rose initially from 0.59 to 0.86 by the third quarter of 2012, then declined, reaching a trough of 0.25 in the second quarter of 2014. A gradual recovery followed, resulting in a value of 0.56 by the first quarter of 2016. The values signify limited immediate liquidity, with the company’s ability to cover current liabilities without relying on inventory therefore somewhat constrained during much of the period.
- Cash Ratio
- The cash ratio showed the most pronounced volatility and the lowest absolute values among the three ratios, indicating relatively limited cash reserves compared to current liabilities. It increased early on from 0.47 to 0.7 by the third quarter of 2012. However, a steep decline ensued, bottoming out at 0.08 in the second quarter of 2014. Thereafter, a moderate recovery was observed, with the ratio rising to 0.34 by the first quarter of 2016. This suggests periods of very tight cash availability, potentially requiring reliance on other liquid assets or external financing.
- Insights and Implications
- The overall declining trend in liquidity ratios up to mid-2014 indicates growing short-term financial pressure, which then partially eased as these ratios recovered moderately through to early 2016. Persistent values below 1 for both current and quick ratios imply that the company frequently maintained current liabilities exceeding current assets, raising concerns over its short-term financial flexibility. The low and fluctuating cash ratio highlights limited cash buffers, suggesting potential exposure to liquidity risk during certain 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||
| Trade Desk 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).
1 Q1 2016 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets demonstrate variability over the observed periods, initially increasing from 3,888 million US dollars at the start of 2012 to a peak of 5,362 million US dollars in the third quarter of 2012. This is followed by a general decline, with occasional fluctuations, reaching a low point around the end of 2013 and throughout 2014, where values predominantly remained below 2,500 million US dollars. While there is some recovery observed entering 2015 and early 2016, current assets generally stayed at a lower level compared to the earlier part of the timeline.
- Current Liabilities
- Current liabilities exhibit a fluctuating but overall high level throughout the period. They start at 5,584 million US dollars in the first quarter of 2012, experience some decrease in mid-2012, then peak significantly at 7,006 million US dollars in the second quarter of 2013. Following this peak, a gradual decline trend is evident towards the end of 2015 and early 2016, settling near 3,853 million US dollars by the first quarter of 2016. Despite this decline, liabilities remain consistently higher than current assets across all periods.
- Current Ratio
- The current ratio, a key indicator of short-term liquidity, reflects the relationship between current assets and current liabilities. It fluctuates considerably, starting below 1 at 0.7 in early 2012 and increasing close to parity around 0.97 in late 2012. After that, there is a noticeable decline throughout 2013, hitting a low point of 0.41 in the fourth quarter, followed by even lower levels around 0.38 in mid-2014. Though slight improvements are seen beginning in late 2014 through early 2016, with the ratio rising to 0.68 by the first quarter of 2016, the current ratio consistently remains below 1, indicating potential liquidity pressures and a situation where current liabilities exceed current assets.
- Overall Analysis
- The financial data reveals a pattern of constrained liquidity, with current liabilities consistently outpacing current assets. The initial period shows relatively stronger asset levels, but these decrease over time without a corresponding drop in liabilities until late in the timeline. The consistently low current ratios suggest potential short-term financial stress or reliance on external funding sources to meet obligations. The slight improvement in the ratio during 2015 and early 2016 could indicate efforts towards better liquidity management, although the ratio remains below the generally recommended threshold of 1.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||
| Trade Desk 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).
1 Q1 2016 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial analysis over the examined periods reveals notable trends in the liquidity position of the company. The total quick assets exhibit a fluctuating pattern, showing an overall decline after reaching a peak in the third quarter of 2012. From a high point of 4,752 million US dollars in September 2012, quick assets decreased significantly in late 2013 before experiencing minor recoveries towards the end of the observed timeframe.
Current liabilities have demonstrated variability but generally maintain a substantial level throughout the periods. After an initial drop from March 2012 to June 2012, liabilities rose sharply mid-2013, reaching a peak of 7,006 million US dollars in June 2013, followed by a consistent decline thereafter, with a moderate stabilization observed in subsequent quarters.
The quick ratio, which measures short-term liquidity by comparing quick assets to current liabilities, correspondingly reflects these movements. It reached its highest level at 0.86 in September 2012, indicating relatively stronger liquidity at that point. However, the ratio declined steadily thereafter, reaching a low in late 2013 at 0.28. Although some recovery occurred from early 2014 onwards, the quick ratio remained below 0.6, signaling persistent liquidity challenges. By March 2016, the ratio registers a modest improvement compared to the low points but does not return to earlier highs.
- Total Quick Assets
- Peaked in Q3 2012, followed by a downward trend and partial recovery towards 2016, indicating fluctuating availability of liquid assets.
- Current Liabilities
- Showed an initial decrease, then a significant increase peaking in mid-2013, before declining steadily, suggesting changes in short-term obligations possibly linked to operational or financing activities.
- Quick Ratio
- Mirrors the trends in quick assets and liabilities, exhibiting a peak in late 2012 and subsequent decline, with a low in late 2013 and partial improvement by early 2016, reflecting ongoing constraints in short-term financial flexibility.
Overall, the data indicate the company faced liquidity pressures during the observed years, particularly from late 2013 through early 2015, as evidenced by depressed quick ratios and a decline in quick assets relative to current liabilities. The modest improvements near the end suggest some easing of these pressures, though liquidity remains cautious and below earlier benchmarks.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||
| Trade Desk 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).
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 showed an initial upward trend from March 2012, increasing from 2,629 million US dollars to a peak of 3,853 million by September 2012. However, following this peak, there was a significant decline through to December 2013, reaching a low of 525 million. Post this trough, cash assets fluctuated moderately, with occasional increases, ending at 1,297 million in March 2016. This pattern indicates volatility in cash reserves, with a substantial drawdown after mid-2012 and only a partial recovery by early 2016.
- Current Liabilities
- Current liabilities displayed considerable variability over the period. Starting at 5,584 million in March 2012, there was a general increase reaching a high of 7,006 million in June 2013. Subsequently, liabilities decreased significantly to 3,763 million by September 2015 before stabilizing around the 3,800 million range toward March 2016. This reduction in liabilities after mid-2013 suggests efforts to decrease short-term obligations, improving the company's liquidity profile.
- Cash Ratio
- The cash ratio, measuring liquidity by comparing cash assets to current liabilities, reflected the trends of both cash and liabilities. Initially, it improved from 0.47 in March 2012 to 0.70 by September 2012, indicating strengthened liquidity. Following this peak, the ratio declined sharply to as low as 0.08 by June 2014, corresponding with the decrease in cash and the volatility in liabilities. From mid-2014, the cash ratio showed gradual improvement, climbing to 0.34 by March 2016, suggesting a recovering liquidity position but still remaining below the earlier highs.
- Overall Analysis
- The data indicate a period of liquidity stress starting in late 2012, characterized by sharply declining cash reserves and a high level of current liabilities, leading to a notably weakened cash ratio. From 2014 onward, the company appears to have taken steps to ameliorate the liquidity position by reducing liabilities and modestly increasing cash balances, resulting in a gradual recovery of the cash ratio. However, even at the end of the period analyzed, the liquidity level remains lower than the best levels observed in 2012, indicating ongoing cautious management of short-term financial resources.