Time Warner Cable Inc. (NYSE:TWC)

Net Fixed Asset Turnover

The net fixed asset turnover ratio displayed a gradual increase from 1.37 at the end of the first quarter of 2012 to a peak of approximately 1.51 in the third quarter of 2013. Following this peak, the ratio stabilized around 1.40 to 1.43 during 2014 and remained steady at about 1.40 through the first quarter of 2016. This trend suggests improved efficiency in utilizing fixed assets until late 2013, after which the utilization rate plateaued.

Total Asset Turnover

The total asset turnover ratio showed a consistent upward trend over the entire observed period. Starting at 0.41 in March 2012, it increased steadily reaching 0.48 by the first quarter of 2016. This indicates progressive enhancement in the efficiency of using overall assets to generate revenue, reflecting potentially better asset management or increased operational effectiveness.

Equity Turnover

The equity turnover ratio experienced growth from 2.66 in March 2012 to a peak of 3.31 in the third quarter of 2013. After this high point, the ratio declined steadily, reaching 2.58 by the end of the first quarter of 2016. The initial increase indicates more effective use of shareholders' equity to generate sales, while the subsequent decline suggests a reduction in this efficiency over the later periods, possibly due to changes in equity base or sales performance.

Revenue Trend

Revenue demonstrates a generally upward trajectory over the observed periods from March 2012 through March 2016. Starting at approximately 5,134 million US dollars, revenue increases steadily to reach around 6,191 million US dollars by the end of the period. Although fluctuations occur quarter to quarter, the overall trend indicates sustained growth. Notably, the revenue growth appears somewhat consistent with minor decelerations during some quarters, but the long-term pattern remains positive.

Property, Plant, and Equipment (PP&E), Net

The net value of property, plant, and equipment shows a continuous increase over the periods under review. Beginning at roughly 14,542 million US dollars in March 2012, the net PP&E rises progressively to approximately 17,276 million US dollars by March 2016. This increase suggests ongoing investments and capital expenditures to support the company's operations and possibly capacity expansion, reflecting a commitment to maintaining or enhancing productive assets.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, a measure of how efficiently the company utilizes its fixed assets to generate revenue, initially rises from 1.37 in March 2012 to a peak near 1.51 during mid-to-late 2013. Following this peak, there is a gradual decline and stabilization around 1.4 through early 2016. This pattern implies that while asset utilization efficiency improved in the earlier years, it slightly diminished or plateaued in the later periods, despite the steady increase in net PP&E and revenue.

Summary Insights

The financial data reflects a company experiencing healthy revenue growth paralleled by increased capital investment in fixed assets. However, the slight decline in the net fixed asset turnover could suggest that the rate of asset investment outpaces the immediate revenue gains, potentially indicating a lag in realizing full productive efficiency from new or existing assets. Overall, the company maintains a balance between expanding its asset base and generating growing revenue, though attention might be warranted to ensure asset utilization efficiency does not deteriorate further.

Revenue Trends

The revenue demonstrated a consistent upward trajectory over the examined periods, starting at $5,134 million in the first quarter of 2012 and reaching $6,191 million by the first quarter of 2016. Quarterly revenue fluctuations were relatively minor, with a general pattern of steady growth. Notably, the revenue increased progressively each year, signifying strong sales performance and possibly enhanced market presence or pricing power.

Total Assets Trends

Total assets fluctuated with a mild decreasing tendency from approximately $49,296 million in the first quarter of 2012 to a low of near $47,431 million in the third quarter of 2013. Subsequently, assets stabilized and showed slight increases, ending around $49,751 million in the first quarter of 2016. This pattern indicates some asset base restructuring or divestments followed by stabilization or moderate growth in asset holdings.

Total Asset Turnover Analysis

The total asset turnover ratio exhibited a positive trend, improving from 0.41 in early 2012 to 0.48 by the first quarter of 2016. The ratio increased steadily over time, highlighting enhanced efficiency in the use of assets to generate revenue. This improvement suggests better operational management or more effective utilization of the asset base, contributing to stronger revenue generation relative to asset size.

Summary of Financial Trends

Over the observed periods, the financial data indicates growing revenues alongside a stable yet slightly fluctuating asset base. Increased asset turnover ratios reflect improved operational efficiency. The company appears to be managing its resources effectively to produce higher sales without proportionate increases in assets, which could positively impact profitability margins and return on assets.

The financial data reveals several notable trends in the quarterly performance across the observed periods.

Revenue

Over the quarters, revenue demonstrates a consistent upward trend. Beginning at approximately $5,134 million in early 2012, revenue experiences periodic increases each quarter, reaching around $6,191 million by the first quarter of 2016. This steady growth indicates a positive sales trajectory, with no significant declines or volatility across the reported periods.

Total Shareholders’ Equity

Shareholders' equity shows some fluctuations initially, with a slight decline from about $7,518 million in early 2012 to a low near $6,662 million in late 2013. However, following this period, there is a clear recovery and upward movement, culminating at approximately $9,357 million by the first quarter of 2016. This pattern suggests periods of equity contraction likely offset by subsequent growth, reflecting changes in retained earnings, capital adjustments, or other equity factors over time.

Equity Turnover Ratio

The equity turnover ratio, calculated as revenue divided by shareholders’ equity, rises from 2.66 in early 2012 to a peak around 3.31 in late 2013, indicating increasing efficiency in generating revenue from equity during this phase. However, starting late 2013, the ratio begins a gradual decline to about 2.58 by early 2016. This downturn in turnover ratio is attributable to the rising equity base outpacing revenue growth, suggesting a slight reduction in the relative efficiency of equity utilization.

In summary, the company exhibits steady revenue growth coupled with an increasing equity base after an initial period of contraction. The equity turnover ratio’s initial rise followed by a subsequent decline reflects shifting dynamics between revenue generation and equity growth, highlighting changes in operational efficiency or capital structure over the observed quarters.