Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Time Warner Cable Inc., short-term (operating) 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Time Warner Cable Inc. receivables turnover ratio improved from 2013 to 2014 and from 2014 to 2015. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Time Warner Cable Inc. payables turnover ratio increased from 2013 to 2014 but then slightly decreased from 2014 to 2015 not reaching 2013 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Time Warner Cable Inc. number of days of receivables outstanding improved from 2013 to 2014 and from 2014 to 2015. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Time Warner Cable Inc. number of days of payables outstanding decreased from 2013 to 2014 but then increased from 2014 to 2015 not reaching 2013 level. |
Receivables Turnover
Time Warner Cable Inc., receivables 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) | |
| Receivables, less allowances | 916) | 949) | 954) | 883) | 767) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 25.87 | 24.04 | 23.19 | 24.22 | 25.65 | |
| Benchmarks | ||||||
| Receivables Turnover, 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
Receivables turnover = Revenue ÷ Receivables, less allowances
= 23,697 ÷ 916 = 25.87
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Time Warner Cable Inc. receivables turnover ratio improved from 2013 to 2014 and from 2014 to 2015. |
Payables Turnover
Time Warner Cable Inc., payables 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) | ||||||
| Programming and content | 5,815) | 5,294) | 4,950) | 4,703) | 9,138) | |
| Accounts payable | 656) | 567) | 565) | 653) | 545) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 8.86 | 9.34 | 8.76 | 7.20 | 16.77 | |
| Benchmarks | ||||||
| Payables Turnover, 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
Payables turnover = Programming and content ÷ Accounts payable
= 5,815 ÷ 656 = 8.86
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Time Warner Cable Inc. payables turnover ratio increased from 2013 to 2014 but then slightly decreased from 2014 to 2015 not reaching 2013 level. |
Working Capital Turnover
Time Warner Cable Inc., working capital 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) | ||||||
| Current assets | 2,459) | 2,316) | 2,144) | 4,877) | 6,398) | |
| Less: Current liabilities | 3,949) | 4,497) | 5,226) | 5,325) | 5,370) | |
| Working capital | (1,490) | (2,181) | (3,082) | (448) | 1,028) | |
| Revenue | 23,697) | 22,812) | 22,120) | 21,386) | 19,675) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | 19.14 | |
| Benchmarks | ||||||
| Working Capital Turnover, 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
Working capital turnover = Revenue ÷ Working capital
= 23,697 ÷ -1,490 = —
2 Click competitor name to see calculations.
Average Receivable Collection Period
Time Warner Cable Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 25.87 | 24.04 | 23.19 | 24.22 | 25.65 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 14 | 15 | 16 | 15 | 14 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 25.87 = 14
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Time Warner Cable Inc. number of days of receivables outstanding improved from 2013 to 2014 and from 2014 to 2015. |
Average Payables Payment Period
Time Warner Cable Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 8.86 | 9.34 | 8.76 | 7.20 | 16.77 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 41 | 39 | 42 | 51 | 22 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.86 = 41
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Time Warner Cable Inc. number of days of payables outstanding decreased from 2013 to 2014 but then increased from 2014 to 2015 not reaching 2013 level. |