Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Time Warner Cable Inc., long-term (investment) activity 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a slight upward trend from 1.41 in 2011 to 1.47 in 2013, indicating improved efficiency in using fixed assets to generate sales during this period. However, from 2014 onwards, the ratio experiences a gradual decline, reaching 1.40 in 2015. This suggests a marginal reduction in the efficiency of fixed asset utilization in the later years.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a consistent and steady increase over the five-year period, rising from 0.41 in 2011 to 0.48 in 2015. This upward trend implies an improvement in the company's overall efficiency at converting total assets into revenue, reflecting positively on asset management and operational performance.
- Equity Turnover
- The equity turnover ratio increases significantly from 2.61 in 2011 to a peak of 3.19 in 2013, indicating enhanced efficiency in utilizing shareholders' equity to generate sales during the initial years. However, a decline is observed afterward, with the ratio dropping to 2.85 in 2014 and further to 2.63 in 2015. This pattern suggests a reduction in equity utilization efficiency in the latter years, possibly reflecting changes in equity base or sales generation dynamics.
Net Fixed Asset Turnover
Time Warner Cable Inc., net fixed asset turnover 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) | ||||||
| Revenue | 23,697) | 22,812) | 22,120) | 21,386) | 19,675) | |
| Property, plant and equipment, net | 16,945) | 15,990) | 15,056) | 14,742) | 13,905) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 1.40 | 1.43 | 1.47 | 1.45 | 1.41 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Take-Two Interactive Software 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
Net fixed asset turnover = Revenue ÷ Property, plant and equipment, net
= 23,697 ÷ 16,945 = 1.40
2 Click competitor name to see calculations.
- Revenue
- The revenue of the company demonstrates a consistent upward trend over the five-year period. Starting at $19,675 million in 2011, it increased each year, reaching $23,697 million by the end of 2015. This steady growth suggests a positive expansion in the company’s sales or service activities throughout the timeframe examined.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment also shows a continuous increase from $13,905 million in 2011 to $16,945 million in 2015. This upward progression indicates ongoing investment in fixed assets, which may reflect efforts to support the company's operational capacity and future growth potential.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits relatively minor fluctuations over the period, beginning at 1.41 in 2011 and maintaining a generally stable level around 1.4 to 1.47 through 2015. The peak occurs in 2013 at 1.47, after which it slightly declines but remains close to the initial value. This pattern suggests that the company’s efficiency in generating revenue from its net fixed assets has remained consistent without significant improvement or deterioration.
- Summary Insights
- Overall, the financial data reveals a company with a growing revenue base supported by increasing investments in fixed assets. Despite these changes, the turnover ratio remains stable, indicating that the increased assets are being effectively utilized to maintain revenue generation capacity at steady levels. There is no evidence of declining asset productivity, nor is there marked improvement; rather, the data suggests balanced growth and asset management over the assessed period.
Total Asset Turnover
Time Warner Cable Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 23,697) | 22,812) | 22,120) | 21,386) | 19,675) | |
| Total assets | 49,277) | 48,501) | 48,273) | 49,809) | 48,276) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.48 | 0.47 | 0.46 | 0.43 | 0.41 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Take-Two Interactive Software 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
Total asset turnover = Revenue ÷ Total assets
= 23,697 ÷ 49,277 = 0.48
2 Click competitor name to see calculations.
- Revenue Trend Analysis
- Revenue shows a consistent upward trajectory from 2011 to 2015. Starting at $19,675 million in 2011, the figure increased each year, reaching $23,697 million in 2015. This represents a compound annual growth rate that reflects steady expansion in sales or service income over the five-year period.
- Total Assets Trend Analysis
- Total assets remained relatively stable across the observed years, beginning at $48,276 million in 2011 and fluctuating slightly before reaching $49,277 million in 2015. The marginal increase indicates a conservative asset management approach, with no significant asset base expansion or contraction during this period.
- Total Asset Turnover Ratio Analysis
- The total asset turnover ratio improved incrementally each year, rising from 0.41 in 2011 to 0.48 in 2015. This suggests enhanced efficiency in utilizing assets to generate revenue. The upward trend indicates that the company was able to extract more revenue per unit of asset value over time.
- Summary of Financial Efficiency and Growth
- The data indicate a scenario where revenue growth outpaced the growth in total assets, leading to improved asset utilization efficiency as evidenced by the increasing total asset turnover ratio. This combination suggests effective operational management and potentially better return on assets.
Equity Turnover
Time Warner Cable Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 23,697) | 22,812) | 22,120) | 21,386) | 19,675) | |
| Total TWC shareholders’ equity | 8,995) | 8,013) | 6,943) | 7,279) | 7,530) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.63 | 2.85 | 3.19 | 2.94 | 2.61 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Take-Two Interactive Software 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
Equity turnover = Revenue ÷ Total TWC shareholders’ equity
= 23,697 ÷ 8,995 = 2.63
2 Click competitor name to see calculations.
The financial data over the period from 2011 to 2015 exhibits distinct trends across revenue, shareholders’ equity, and equity turnover ratios.
- Revenue
- There is a consistent upward trend in revenue throughout the five-year span. Starting from approximately 19,675 million US dollars in 2011, revenue increased steadily each year, reaching 23,697 million US dollars by the end of 2015. This represents a cumulative increase of about 20.4%, indicating sustained growth in sales or service income.
- Total TWC shareholders’ equity
- The shareholders’ equity shows a less consistent pattern. It begins at 7,530 million US dollars in 2011 and decreases gradually over the first three years, reaching a low of 6,943 million US dollars in 2013. Subsequently, equity rises sharply, climbing to 8,013 million US dollars in 2014 and further to 8,995 million US dollars in 2015. This recovery and growth phase suggest either improved profitability, retained earnings accumulation, or possible equity injections during the later years.
- Equity Turnover Ratio
- The equity turnover ratio, which measures how efficiently equity is utilized to generate revenue, shows variability across the period. It increases from 2.61 in 2011 to a peak of 3.19 in 2013, indicating improving efficiency during this time despite declining equity values. After 2013, the ratio declines to 2.85 in 2014 and further down to 2.63 in 2015, suggesting a reduction in efficiency. The decrease corresponds with the recovery in equity, potentially reflecting that the increased equity was not matched by proportional increases in revenue.
Overall, while revenue demonstrates continuous growth, shareholders’ equity experienced a dip followed by a notable recovery, and the equity turnover ratio peaked mid-period before declining. These patterns may imply strategic financial adjustments and changes in operational efficiency impacting the company’s capital utilization over time.