Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Time Warner Cable Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Time Warner Cable Inc. debt to equity ratio improved from 2013 to 2014 and from 2014 to 2015. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Time Warner Cable Inc. debt to capital ratio improved from 2013 to 2014 and from 2014 to 2015. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Time Warner Cable Inc. debt to assets ratio improved from 2013 to 2014 and from 2014 to 2015. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Time Warner Cable Inc. financial leverage ratio decreased from 2013 to 2014 and from 2014 to 2015. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Time Warner Cable Inc. interest coverage ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Time Warner Cable Inc. fixed charge coverage ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
Debt to Equity
Time Warner Cable Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 5) | 1,017) | 1,767) | 1,518) | 2,122) | |
| Long-term debt, excluding current maturities | 22,497) | 22,701) | 23,285) | 25,171) | 24,320) | |
| Total debt | 22,502) | 23,718) | 25,052) | 26,689) | 26,442) | |
| Total TWC shareholders’ equity | 8,995) | 8,013) | 6,943) | 7,279) | 7,530) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 2.50 | 2.96 | 3.61 | 3.67 | 3.51 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2015 Calculation
Debt to equity = Total debt ÷ Total TWC shareholders’ equity
= 22,502 ÷ 8,995 = 2.50
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Time Warner Cable Inc. debt to equity ratio improved from 2013 to 2014 and from 2014 to 2015. |
Debt to Capital
Time Warner Cable Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 5) | 1,017) | 1,767) | 1,518) | 2,122) | |
| Long-term debt, excluding current maturities | 22,497) | 22,701) | 23,285) | 25,171) | 24,320) | |
| Total debt | 22,502) | 23,718) | 25,052) | 26,689) | 26,442) | |
| Total TWC shareholders’ equity | 8,995) | 8,013) | 6,943) | 7,279) | 7,530) | |
| Total capital | 31,497) | 31,731) | 31,995) | 33,968) | 33,972) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.71 | 0.75 | 0.78 | 0.79 | 0.78 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2015 Calculation
Debt to capital = Total debt ÷ Total capital
= 22,502 ÷ 31,497 = 0.71
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Time Warner Cable Inc. debt to capital ratio improved from 2013 to 2014 and from 2014 to 2015. |
Debt to Assets
Time Warner Cable Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 5) | 1,017) | 1,767) | 1,518) | 2,122) | |
| Long-term debt, excluding current maturities | 22,497) | 22,701) | 23,285) | 25,171) | 24,320) | |
| Total debt | 22,502) | 23,718) | 25,052) | 26,689) | 26,442) | |
| Total assets | 49,277) | 48,501) | 48,273) | 49,809) | 48,276) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.46 | 0.49 | 0.52 | 0.54 | 0.55 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2015 Calculation
Debt to assets = Total debt ÷ Total assets
= 22,502 ÷ 49,277 = 0.46
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Time Warner Cable Inc. debt to assets ratio improved from 2013 to 2014 and from 2014 to 2015. |
Financial Leverage
Time Warner Cable Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 49,277) | 48,501) | 48,273) | 49,809) | 48,276) | |
| Total TWC shareholders’ equity | 8,995) | 8,013) | 6,943) | 7,279) | 7,530) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 5.48 | 6.05 | 6.95 | 6.84 | 6.41 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2015 Calculation
Financial leverage = Total assets ÷ Total TWC shareholders’ equity
= 49,277 ÷ 8,995 = 5.48
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Time Warner Cable Inc. financial leverage ratio decreased from 2013 to 2014 and from 2014 to 2015. |
Interest Coverage
Time Warner Cable Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to TWC shareholders | 1,844) | 2,031) | 1,954) | 2,155) | 1,665) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | 4) | 2) | |
| Add: Income tax expense | 1,144) | 1,217) | 1,085) | 1,177) | 795) | |
| Add: Interest expense | 1,402) | 1,419) | 1,555) | 1,614) | 1,524) | |
| Earnings before interest and tax (EBIT) | 4,390) | 4,667) | 4,594) | 4,950) | 3,986) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.13 | 3.29 | 2.95 | 3.07 | 2.62 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2015 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,390 ÷ 1,402 = 3.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Time Warner Cable Inc. interest coverage ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015. |
Fixed Charge Coverage
Time Warner Cable Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to TWC shareholders | 1,844) | 2,031) | 1,954) | 2,155) | 1,665) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | 4) | 2) | |
| Add: Income tax expense | 1,144) | 1,217) | 1,085) | 1,177) | 795) | |
| Add: Interest expense | 1,402) | 1,419) | 1,555) | 1,614) | 1,524) | |
| Earnings before interest and tax (EBIT) | 4,390) | 4,667) | 4,594) | 4,950) | 3,986) | |
| Add: Rent expense | 305) | 298) | 257) | 237) | 202) | |
| Earnings before fixed charges and tax | 4,695) | 4,965) | 4,851) | 5,187) | 4,188) | |
| Interest expense | 1,402) | 1,419) | 1,555) | 1,614) | 1,524) | |
| Rent expense | 305) | 298) | 257) | 237) | 202) | |
| Fixed charges | 1,707) | 1,717) | 1,812) | 1,851) | 1,726) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.75 | 2.89 | 2.68 | 2.80 | 2.43 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
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).
1 2015 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,695 ÷ 1,707 = 2.75
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Time Warner Cable Inc. fixed charge coverage ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |