Analysis of Solvency Ratios
Quarterly Data
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 (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).
- Debt to Equity Ratio
- The debt to equity ratio exhibits a generally declining trend from March 2012 through March 2016. Initially, it fluctuates around the 3.5 to 3.9 range, peaking near 3.93 in mid-2013. Afterward, the ratio decreases steadily each quarter, moving from approximately 3.64 in early 2014 down to 2.4 by the first quarter of 2016. This pattern indicates a gradual reduction in reliance on debt relative to shareholders' equity over the observed period.
- Debt to Capital Ratio
- The debt to capital ratio remains relatively stable, fluctuating narrowly between 0.70 and 0.80 throughout the entire period. Early data points hover near 0.78 to 0.80, with a slight downward shift evident after 2013, settling closer to 0.71 by the first quarter of 2016. This suggests a modest but consistent decrease in the proportion of debt financing when compared to total capital.
- Debt to Assets Ratio
- There is a modest downward trend in the debt to assets ratio over the period. Initially around 0.54 to 0.55, the metric gradually declines to approximately 0.45 by March 2016. The steady reduction indicates an improvement in asset financing, with relatively less debt used to fund total assets as time progresses.
- Financial Leverage Ratio
- The financial leverage ratio follows a declining trend as well. Starting at about 6.56 in early 2012, it experiences some fluctuations but generally decreases, reaching approximately 5.32 by the first quarter of 2016. This suggests that the company’s overall level of leverage, in terms of total assets to equity, has diminished steadily during the period reviewed, likely reflecting an effort to manage risk or adjust capital structure.
- Summary
- Overall, the financial ratios reflect a consistent strategy towards reducing leverage and debt dependency. The decline in debt relative to equity, capital, and assets points to a gradual strengthening of the company’s balance sheet and potential improvement in financial stability. The steady decrease in financial leverage complements this observation, implying a reduced use of debt to finance assets and thus possibly a shift towards more conservative financial management over the analyzed periods.
Debt Ratios
Debt to Equity
Time Warner Cable Inc., debt to equity 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 maturities of long-term debt | 5) | 5) | 6) | 320) | 647) | 1,017) | 1,540) | 1,663) | 3,062) | 1,767) | 1,771) | 3,281) | 2,273) | 1,518) | 1,876) | 1,855) | 2,495) | ||||||
| Long-term debt, excluding current maturities | 22,487) | 22,497) | 22,689) | 22,732) | 22,639) | 22,701) | 22,762) | 22,917) | 22,792) | 23,285) | 23,261) | 23,111) | 24,248) | 25,171) | 25,187) | 25,381) | 24,344) | ||||||
| Total debt | 22,492) | 22,502) | 22,695) | 23,052) | 23,286) | 23,718) | 24,302) | 24,580) | 25,854) | 25,052) | 25,032) | 26,392) | 26,521) | 26,689) | 27,063) | 27,236) | 26,839) | ||||||
| Total TWC shareholders’ equity | 9,357) | 8,995) | 8,745) | 8,508) | 8,140) | 8,013) | 7,905) | 7,410) | 7,094) | 6,943) | 6,662) | 6,708) | 6,938) | 7,279) | 7,609) | 7,357) | 7,518) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 2.40 | 2.50 | 2.60 | 2.71 | 2.86 | 2.96 | 3.07 | 3.32 | 3.64 | 3.61 | 3.76 | 3.93 | 3.82 | 3.67 | 3.56 | 3.70 | 3.57 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, 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
Debt to equity = Total debt ÷ Total TWC shareholders’ equity
= 22,492 ÷ 9,357 = 2.40
2 Click competitor name to see calculations.
- Total Debt
- The total debt experienced a generally declining trend over the observed periods. Starting at $26,839 million in March 2012, it showed minor fluctuations in the first two years but decreased steadily after mid-2013. By March 2016, the total debt had reduced to $22,492 million, indicating a gradual deleveraging process.
- Total Shareholders' Equity
- The shareholders’ equity displayed a fluctuating but overall upward trajectory throughout the time frame. It began at $7,518 million in March 2012, with slight decreases and increases through 2013. From March 2014 onward, a consistent increase is evident, culminating at $9,357 million in March 2016. This growth suggests strengthening equity base and possibly reinvestment of earnings or capital injections.
- Debt to Equity Ratio
- The debt to equity ratio exhibited a downward trend, signifying an improvement in financial leverage and capital structure. Initially, it hovered around a high range of 3.5 to 3.9 between 2012 and early 2013, reflecting a relatively high reliance on debt financing compared to equity. Starting mid-2013, this ratio declined progressively, reaching 2.4 by March 2016. This decrease implies that the company reduced its relative debt burden or increased its equity base over time, enhancing financial stability.
- Overall Analysis
- The combined trends illustrate a strategic effort to reduce dependence on debt and strengthen equity positions. The reduction in total debt, coupled with increasing shareholders’ equity, led to a considerable improvement in the debt to equity ratio. This shift in capital structure could improve the company’s credit profile and reduce financial risk, potentially enabling more flexibility for future financing or investments.
Debt to Capital
Time Warner Cable Inc., debt to capital calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current maturities of long-term debt | 5) | 5) | 6) | 320) | 647) | 1,017) | 1,540) | 1,663) | 3,062) | 1,767) | 1,771) | 3,281) | 2,273) | 1,518) | 1,876) | 1,855) | 2,495) | ||||||
| Long-term debt, excluding current maturities | 22,487) | 22,497) | 22,689) | 22,732) | 22,639) | 22,701) | 22,762) | 22,917) | 22,792) | 23,285) | 23,261) | 23,111) | 24,248) | 25,171) | 25,187) | 25,381) | 24,344) | ||||||
| Total debt | 22,492) | 22,502) | 22,695) | 23,052) | 23,286) | 23,718) | 24,302) | 24,580) | 25,854) | 25,052) | 25,032) | 26,392) | 26,521) | 26,689) | 27,063) | 27,236) | 26,839) | ||||||
| Total TWC shareholders’ equity | 9,357) | 8,995) | 8,745) | 8,508) | 8,140) | 8,013) | 7,905) | 7,410) | 7,094) | 6,943) | 6,662) | 6,708) | 6,938) | 7,279) | 7,609) | 7,357) | 7,518) | ||||||
| Total capital | 31,849) | 31,497) | 31,440) | 31,560) | 31,426) | 31,731) | 32,207) | 31,990) | 32,948) | 31,995) | 31,694) | 33,100) | 33,459) | 33,968) | 34,672) | 34,593) | 34,357) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.71 | 0.71 | 0.72 | 0.73 | 0.74 | 0.75 | 0.75 | 0.77 | 0.78 | 0.78 | 0.79 | 0.80 | 0.79 | 0.79 | 0.78 | 0.79 | 0.78 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, 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
Debt to capital = Total debt ÷ Total capital
= 22,492 ÷ 31,849 = 0.71
2 Click competitor name to see calculations.
The financial data reveals several notable trends regarding the company’s capital structure over the period analyzed.
- Total Debt
- Total debt exhibits a gradual decline from approximately 26,839 million US dollars in March 2012 to 22,492 million US dollars by March 2016. This represents a reduction of about 16% over the four-year span, indicating a consistent effort to reduce debt levels or possibly repay liabilities over time.
- Total Capital
- Total capital shows slight fluctuations but generally maintains a relatively stable range between roughly 31,426 million and 34,672 million US dollars throughout the period. After peaking close to 34,672 million in September 2012, it trends downward towards the mid-31,000 million range by early 2016, suggesting some moderation in capital growth or possible capital restructuring.
- Debt to Capital Ratio
- The debt to capital ratio starts at around 0.78 in March 2012, fluctuates marginally between 0.75 and 0.80 until late 2013, and then shows a steady decrease from 0.78 in December 2013 to 0.71 by March 2016. This downward trend in the ratio indicates an improving leverage position, reflecting a relatively faster reduction in debt compared to total capital.
Overall, the data suggests a deliberate deleveraging strategy characterized by a steady reduction in total debt and a gradual improvement in the debt to capital ratio. The company maintains a stable capital base, indicating sound financial management aimed at lowering financial risk while preserving capital stability.
Debt to Assets
Time Warner Cable Inc., debt to assets 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 maturities of long-term debt | 5) | 5) | 6) | 320) | 647) | 1,017) | 1,540) | 1,663) | 3,062) | 1,767) | 1,771) | 3,281) | 2,273) | 1,518) | 1,876) | 1,855) | 2,495) | ||||||
| Long-term debt, excluding current maturities | 22,487) | 22,497) | 22,689) | 22,732) | 22,639) | 22,701) | 22,762) | 22,917) | 22,792) | 23,285) | 23,261) | 23,111) | 24,248) | 25,171) | 25,187) | 25,381) | 24,344) | ||||||
| Total debt | 22,492) | 22,502) | 22,695) | 23,052) | 23,286) | 23,718) | 24,302) | 24,580) | 25,854) | 25,052) | 25,032) | 26,392) | 26,521) | 26,689) | 27,063) | 27,236) | 26,839) | ||||||
| Total assets | 49,751) | 49,277) | 48,721) | 48,886) | 48,330) | 48,501) | 48,636) | 48,456) | 49,153) | 48,273) | 47,431) | 49,228) | 49,299) | 49,809) | 50,085) | 49,937) | 49,296) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.45 | 0.46 | 0.47 | 0.47 | 0.48 | 0.49 | 0.50 | 0.51 | 0.53 | 0.52 | 0.53 | 0.54 | 0.54 | 0.54 | 0.54 | 0.55 | 0.54 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, 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
Debt to assets = Total debt ÷ Total assets
= 22,492 ÷ 49,751 = 0.45
2 Click competitor name to see calculations.
- Total Debt
- The company's total debt exhibited a gradual decline over the reported periods. Starting at approximately 26.8 billion US dollars in the first quarter of 2012, the debt level remained relatively stable through 2012 and early 2013, with minor fluctuations around 26.3 billion US dollars. From mid-2013 onwards, the debt consistently reduced, reaching close to 22.5 billion US dollars by the first quarter of 2016. This trend indicates an active effort to deleverage or manage liabilities more conservatively during the observed timeframe.
- Total Assets
- Total assets showed slight fluctuations but overall maintained a stable range around 49 billion US dollars throughout the periods. The assets peaked near 50 billion US dollars during late 2012, followed by a moderate dip around mid-2013. Afterwards, asset levels stabilized with minor variations, and by early 2016, there was a slight increase towards approximately 49.8 billion US dollars. The relative stability in assets suggests consistency in the company’s resource base without significant expansions or contractions.
- Debt to Assets Ratio
- The debt to assets ratio demonstrated a clear downward trend over the course of the analysis. Beginning at about 0.54-0.55 in early 2012, the ratio gradually decreased quarter by quarter, falling to approximately 0.45 by the first quarter of 2016. This decline reflects an improving balance sheet structure, characterized by a reduction in leverage relative to asset size. The consistent decrease indicates a progressive strengthening of the company's financial position, likely resulting from debt reduction and steady asset values.
Financial Leverage
Time Warner Cable Inc., financial leverage 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) | |||||||||||||||||||||||
| Total assets | 49,751) | 49,277) | 48,721) | 48,886) | 48,330) | 48,501) | 48,636) | 48,456) | 49,153) | 48,273) | 47,431) | 49,228) | 49,299) | 49,809) | 50,085) | 49,937) | 49,296) | ||||||
| Total TWC shareholders’ equity | 9,357) | 8,995) | 8,745) | 8,508) | 8,140) | 8,013) | 7,905) | 7,410) | 7,094) | 6,943) | 6,662) | 6,708) | 6,938) | 7,279) | 7,609) | 7,357) | 7,518) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 5.32 | 5.48 | 5.57 | 5.75 | 5.94 | 6.05 | 6.15 | 6.54 | 6.93 | 6.95 | 7.12 | 7.34 | 7.11 | 6.84 | 6.58 | 6.79 | 6.56 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, 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
Financial leverage = Total assets ÷ Total TWC shareholders’ equity
= 49,751 ÷ 9,357 = 5.32
2 Click competitor name to see calculations.
- Total Assets
- The total assets displayed relative stability over the observed periods, fluctuating within a range roughly between 47,000 and 50,000 million US dollars. Starting at approximately 49,296 million US dollars at the beginning of the period, the value experienced minor declines and recoveries, ending near 49,751 million US dollars. This indicates a consistent asset base with no significant expansions or contractions during the timeframe.
- Total Shareholders’ Equity
- The shareholders' equity demonstrated a gradual upward trend throughout the periods. Beginning at 7,518 million US dollars, it experienced moderate fluctuations but showed steady increases particularly from mid-2014 onward. By the last data point, shareholders' equity had increased to 9,357 million US dollars, representing a notable strengthening of the company’s net value and indicating retained earnings or capital increases over time.
- Financial Leverage
- The financial leverage ratio illustrates a clear downward trend over the periods, moving from 6.56 initially to 5.32 in the last reported quarter. This decline suggests a reduction in the extent to which the company utilized debt financing relative to equity. The consistent decrease in leverage indicates a strengthening equity base relative to debt or a reduction in total liabilities, implying an improvement in financial stability and reduced financial risk.
- Summary of Trends
- Overall, the data reflect a stable asset base combined with gradual increases in shareholders' equity and a consistent reduction in financial leverage. This pattern points to incremental strengthening of the company’s balance sheet, characterized by improved equity financing and less reliance on debt. The steady increase in equity alongside decreasing leverage may enhance financial flexibility and reduce risk exposure over time.