Time Warner Cable Inc. (NYSE:TWC)

Receivables Turnover

The receivables turnover ratio exhibits a moderate fluctuation over the five-year period. It decreased from 25.65 in 2011 to a low of 23.19 in 2013, indicating a slight slowdown in the frequency of receivables collection. However, the ratio rebounded thereafter, reaching 25.87 in 2015, marginally surpassing the initial level. This suggests a general improvement in the efficiency of collecting receivables towards the end of the period.

Payables Turnover

The payables turnover ratio shows a significant decline from 16.77 in 2011 to 7.2 in 2012, indicating the company extended its payment cycle considerably. Subsequently, the ratio somewhat recovered, rising to 8.76 in 2013, 9.34 in 2014, and slightly falling to 8.86 in 2015. Overall, the company appears to be taking longer to pay its suppliers compared to the very high turnover in 2011, suggesting a strategic or operational shift in managing payables.

Working Capital Turnover

Data for working capital turnover is only available for 2011, with a value of 19.14. The absence of data for subsequent years precludes analysis of trends or changes in this metric.

Average Receivable Collection Period

The average collection period, measured in days, fluctuates marginally across the years. It increased from 14 days in 2011 to 16 days in 2013, indicating a slight delay in customer payments. This duration then decreased slightly to 14 days by 2015, implying an improvement in the timely collection of receivables towards the end of the period.

Average Payables Payment Period

The average payment period to suppliers experienced a marked increase from 22 days in 2011 to 51 days in 2012, reflecting an extended duration before payments were made. The period declined in the following years to 42 days (2013), 39 days (2014), and increased slightly to 41 days in 2015. This pattern indicates a transition to longer payment cycles compared to the initial year, aligning with the observed trends in payables turnover.

The financial data for the periods analyzed reveals several noteworthy trends with respect to revenue, receivables, and receivables turnover ratios.

Revenue

Over the five-year period, revenue exhibited consistent growth, increasing from 19,675 million US dollars in 2011 to 23,697 million US dollars in 2015. This represents a steady upward trajectory, with annual increments reflecting the company’s ability to expand its sales or service delivery progressively each year.

Receivables, less allowances

The value of receivables, net of allowances, showed an upward trend from 767 million US dollars in 2011 to a peak of 954 million US dollars in 2013. Thereafter, a slight decline was noted, with receivables decreasing to 916 million US dollars by 2015. This pattern indicates that while the volume of outstanding receivables increased initially, the company managed to maintain or improve collections in the latter years, resulting in a reduction towards the end of the period.

Receivables turnover ratio

The receivables turnover ratio started at 25.65 times in 2011 and declined over the subsequent two years, reaching a low of 23.19 times in 2013. After this point, the ratio improved steadily, recovering to 25.87 times by 2015, surpassing the initial 2011 value. This reflects fluctuations in the efficiency of receivables collection, with a dip indicating slower collection in the middle years followed by enhanced efficiency and faster turnover in later years.

In summary, the company demonstrated overall revenue growth with a pattern of initial increases in receivables followed by a modest reduction, aligning with an eventual improvement in the receivables turnover ratio. This suggests effective management of credit and collections processes, particularly in the latter part of the evaluated timeframe, contributing to the financial health and operational efficiency.

Programming and content expenses

The expenditure on programming and content demonstrates a significant decrease from 9,138 million USD in 2011 to 4,703 million USD in 2012. Following this drop, the expenses steadily increased each year, reaching 5,815 million USD by the end of 2015. This pattern indicates a substantial reduction at the start, followed by consistent reinvestment in content over the subsequent years.

Accounts payable

The accounts payable figures show moderate fluctuations over the period. Beginning at 545 million USD in 2011, there is an increase to 653 million USD in 2012, followed by a dip to 565 million USD in 2013. The values then remain relatively stable near 567 million USD in 2014 before rising again to 656 million USD in 2015. Overall, accounts payable maintain a consistent range with some variation but no clear long-term upward or downward trend.

Payables turnover ratio

The payables turnover ratio decreases sharply from 16.77 in 2011 to 7.2 in 2012, reflecting a slower rate of payments relative to purchases or expenses. After 2012, the ratio gradually improves, increasing to 8.76 in 2013, 9.34 in 2014, and slightly declining to 8.86 in 2015. This pattern suggests an initial slowdown in the company's ability or strategy in settling payables efficiently, followed by a recovery toward more frequent payment cycles in the later years.

The financial data reflects several notable trends over the five-year period ending December 31, 2015. The revenue figures show a consistent year-over-year increase, starting from US$19,675 million in 2011 and rising steadily each year to reach US$23,697 million in 2015. This represents a growth trend which suggests expanding operations or improved sales performance during the period under review.

Conversely, working capital demonstrates a declining trajectory with a significant negative swing starting from a positive US$1,028 million in 2011 to sharply negative values in subsequent years: -US$448 million in 2012, reaching a low of -US$3,082 million in 2013, then improving slightly but remaining negative at -US$2,181 million in 2014, and -US$1,490 million in 2015. This shift from positive to negative working capital indicates a potential worsening in the company’s short-term liquidity position and may reflect increasing current liabilities relative to current assets.

The working capital turnover ratio was only reported for the year ending December 31, 2011, with a value of 19.14, which is indicative of how effectively the company used its working capital to generate revenue during that year. The absence of this ratio in subsequent years limits the ability to analyze turnover trends comprehensively. However, considering the significant negative working capital in the later years, it is likely that the efficiency metrics related to working capital could have deteriorated.

Revenue

Consistent annual growth from 2011 to 2015 indicates positive sales momentum and possible market expansion.

Working Capital

Marked decline from positive to significant negative figures suggests increasing strain on short-term financial health and potential liquidity risks.

Working Capital Turnover

Limited data available; only known in 2011, so trends in operational efficiency related to working capital cannot be fully assessed.

Receivables Turnover

The receivables turnover ratio fluctuated modestly over the five-year period. Starting at 25.65 in 2011, it declined to a low of 23.19 in 2013 before recovering to 25.87 in 2015. This pattern indicates a slight reduction in efficiency in collecting receivables during the middle years but a return to a stronger collection pace by the end of the period.

Average Receivable Collection Period

The average collection period displayed a corresponding trend inversely related to receivables turnover. It increased from 14 days in 2011 to a peak of 16 days in 2013, signifying a longer duration to collect receivables during that year. By 2015, the collection period returned to 14 days, suggesting an overall improvement in receivables management towards the end of the timeframe.

Overall Insights

The data reflects a temporary dip in collection efficiency in 2013, as evidenced by a lower receivables turnover and an increased collection period. Subsequent years show a recovery, with turnover ratios and collection periods returning to initial or improved levels by 2015, indicating enhanced operational effectiveness in managing receivables.

Payables Turnover

The payables turnover ratio exhibits a sharp decline from 16.77 in 2011 to 7.2 in 2012, indicating a significant slow down in the frequency with which payables were settled. Following 2012, the ratio shows a gradual increase to 8.76 in 2013, rising further to 9.34 in 2014 before a slight decrease to 8.86 in 2015. This pattern suggests an adjustment period after the initial drop, with payables turnover partially recovering but remaining considerably lower than the 2011 level.

Average Payables Payment Period

This metric mirrors the inverse trend seen in payables turnover. The average payment period escalates from 22 days in 2011 to 51 days in 2012, indicating that payables were paid more slowly. In subsequent years, the period gradually shortens to 42 days in 2013 and 39 days in 2014, before a small increase to 41 days in 2015. Despite these improvements after 2012, the payment period remains almost double the 2011 duration, signifying a sustained extension in payment cycles compared to earlier years.

Overall Analysis

The data reveals a notable shift in the company's payables management starting in 2012. The sharp decrease in payables turnover coupled with the substantial increase in the average payment period suggests a deliberate lengthening of payment terms or a delay in paying suppliers. Although some reversal is observed in the following years with gradual improvements in turnover and shortened payment periods, the figures indicate that the company continued to stretch out payments relative to the 2011 baseline. This trend could reflect changes in company policy, cash flow management strategies, or supplier contract terms during the period analyzed.