Time Warner Inc. (NYSE:TWX)

The analysis of the annual financial data reveals trends related to current assets over the five-year period ending in 2017.

Current Assets

The current assets exhibit a general upward trend from 2013 to 2017. Starting at 12,844 million US dollars in 2013, the value slightly increased to 13,180 million in 2014. There was a minor decrease in 2015, with current assets dropping to 12,513 million, followed by a rebound and consistent growth over the next two years, reaching 15,219 million by the end of 2017.

Adjusted Current Assets

The adjusted current assets closely track the trend of current assets throughout the same period. Beginning at 12,658 million in 2013, there was a steady increase over the five years, with a slight dip in 2015 to 12,693 million. Afterward, the figures rose noticeably, peaking at 15,381 million in 2017. The adjusted current assets remain marginally below the reported current assets each year but follow a very similar pattern.

Overall, the data show an improvement in liquidity positions as indicated by the increasing current and adjusted current assets, especially from 2016 to 2017. The small dip observed in 2015 may suggest a temporary contraction or reallocation of resources, but subsequent years demonstrate recovery and growth.

Total assets

The total assets show a declining trend from 2013 to 2014, dropping from 67,994 million US dollars to 63,259 million US dollars, indicating a reduction in asset base during this period. From 2014 to 2015, total assets experienced a slight increase to 63,848 million US dollars and continued to rise gradually in the subsequent years, reaching 69,209 million US dollars by the end of 2017. This recovery and growth suggest a stabilization and eventual expansion of the company's asset holdings after the initial decline.

Adjusted total assets

The adjusted total assets follow a similar trend to the total assets but maintain consistently higher values. Starting at 69,408 million US dollars in 2013, the adjusted total assets decreased to 64,489 million US dollars in 2014, mirroring the initial drop observed in total assets. Subsequently, a gradual increase was observed over the next three years, culminating at 70,236 million US dollars in 2017. This pattern indicates that adjustments made to the total assets have a consistent effect, possibly reflecting more comprehensive asset evaluations or revaluations, which show a parallel trend of recovery and growth over the five-year period.

Current Liabilities

The current liabilities exhibit a fluctuating but overall increasing trend over the five-year period. Starting at 8,383 million USD in 2013, the amount rose to 9,204 million USD in 2014, then notably decreased to 8,002 million USD in 2015. Subsequently, it increased again to 9,703 million USD in 2016 and experienced a substantial rise to 14,077 million USD by the end of 2017. This pattern suggests variability in short-term obligations, with a marked escalation in the most recent year under review.

Adjusted Current Liabilities

Adjusted current liabilities follow a similar pattern to the unadjusted figures, indicating consistent underlying factors influencing both measures. Beginning at 7,244 million USD in 2013, the adjusted amount increased to 8,233 million USD in 2014 before decreasing to 7,173 million USD in 2015. It then rose to 9,025 million USD in 2016 and sharply increased to 13,247 million USD in 2017. The fluctuations mirror those in current liabilities but reflect lower absolute values, suggesting certain adjustments reduce the reported liabilities, yet the overall trend remains an upward trajectory.

Insights

Over the period from 2013 to 2017, the data indicates a general expansion in the company's short-term financial obligations, particularly pronounced in the final year. The decrease in 2015 in both current and adjusted liabilities could imply a temporary reduction in short-term debts or effective management of liabilities during that year. The subsequent increases may reflect increased borrowing or operational expenses requiring additional short-term funding. The increasing divergence between current and adjusted liabilities year over year highlights the impact of adjustments on highlighting the core short-term liability exposure.

Total liabilities

Total liabilities exhibited a gradual upward trend from 2013 through 2016, increasing from 38,090 million USD in 2013 to 41,600 million USD in 2016. However, in 2017, there was a slight decrease to 40,798 million USD, indicating a potential stabilization or minor reduction in overall liabilities after steady growth over the previous years.

Adjusted total liabilities

Adjusted total liabilities also showed a consistent increase over the five-year period, rising from 35,327 million USD in 2013 to 38,814 million USD in 2017. The year-on-year increments were relatively steady, with no significant fluctuations, suggesting a controlled adjustment process in the company's reported liabilities. The adjusted figures remained consistently lower than the total liabilities, with the gap between them remaining relatively stable during the period, reflecting consistent adjustment factors or reclassifications.

Trend in Total Shareholders' Equity

The total shareholders’ equity exhibited a declining trend from the end of 2013 through 2015, decreasing from 29,904 million US dollars to 23,619 million US dollars. This decline reversed slightly in 2016, with equity increasing to 24,335 million US dollars, followed by a more notable rise to 28,375 million US dollars in 2017, which approaches the equity level observed at the end of 2013.

Trend in Adjusted Total Equity

Adjusted total equity also showed a decrease from 34,081 million US dollars in 2013 to 27,369 million US dollars in 2015. From 2015 onward, it demonstrated a consistent upward trend, increasing to 28,333 million US dollars in 2016 and reaching 31,422 million US dollars by the end of 2017.

Comparison Between Total Shareholders’ Equity and Adjusted Total Equity

Throughout the period, adjusted total equity remains higher than total shareholders' equity by a range of approximately 3,000 to 6,000 million US dollars. Both measures follow similar directional trends, with declines through 2015 and increases thereafter. The gap between the two measures fluctuates but narrows slightly in 2017 as both values increase.

Overall Insights

The data indicates a period of financial contraction in equity components from 2013 to 2015, potentially reflecting company-specific challenges or market conditions affecting net asset positions. Following 2015, an improvement trend is observed, suggesting stabilization and recovery. The consistent difference between total shareholders’ equity and adjusted total equity implies adjustments that potentially account for off-balance-sheet items or valuation changes, with adjusted equity providing a higher valuation measure throughout the timeframe.

Total reported debt

The total reported debt increased steadily from 20,165 million USD at the end of 2013 to a peak of 24,494 million USD in 2014, followed by further growth reaching 24,792 million USD in 2015 and 24,339 million USD in 2016. However, in 2017, there was a slight decrease to 23,744 million USD. This indicates a general upward trend in reported debt over the five-year period, with a minor reduction in the final year.

Total Time Warner Inc. shareholders’ equity

Shareholders’ equity experienced a significant decline from 29,904 million USD in 2013 to 24,476 million USD in 2014, continuing to decrease slightly to 23,619 million USD in 2015. In 2016, equity showed a modest recovery to 24,335 million USD, and in 2017, a more pronounced increase to 28,375 million USD was observed. Overall, the equity position weakened initially but improved towards the end of the period.

Total reported capital

The total reported capital fluctuated in line with movements in debt and equity. It decreased from 50,069 million USD in 2013 to 46,970 million USD in 2014 but then showed moderate increases through 2015 and 2016 to reach 48,674 million USD. By 2017, total reported capital rose to 52,119 million USD, exceeding the opening amount for the period. This suggests an overall expansion of invested capital despite initial contractions.

Adjusted total debt

Adjusted total debt trends mirror those of reported debt but at slightly different levels. The amount increased consistently from 21,765 million USD in 2013 to a high of 25,355 million USD in 2016, before decreasing to 24,720 million USD in 2017. This pattern indicates a growing indebtedness with a minor reduction in the final year, consistent with the reported debt trend.

Adjusted total equity

Adjusted total equity declined from 34,081 million USD in 2013 to 28,076 million USD in 2014, followed by further decreases to 27,369 million USD in 2015 and a slight recovery to 28,333 million USD in 2016. The 2017 figure shows a notable improvement to 31,422 million USD. This reflects an overall trend similar to reported shareholders’ equity, with equity weakening initially then improving towards the end of the period.

Adjusted total capital

Adjusted total capital decreased from 55,846 million USD in 2013 to 51,832 million USD in 2014, then rose gradually through subsequent years, reaching 56,142 million USD in 2017. This indicates a recovery and growth in capital employed after an initial contraction, consistent with trends in adjusted equity and debt.

Summary of trends

Overall, debt levels, both reported and adjusted, exhibited a rising trend over the five years with a slight reduction in the last year. Shareholders’ equity and adjusted equity showed a notable decline in the early years followed by recovery and growth towards the end of the period. Total capital, both reported and adjusted, followed a similar pattern with an initial dip in 2014 before increasing progressively. The data suggest that the company experienced temporary pressures on equity and capital during 2014-2015, possibly due to operational or market factors, but managed to restore and increase its capital base by 2017. The moderation in debt growth in the final year may indicate a strategic shift towards stabilizing leverage.

Revenue Trends

Over the five-year period, total revenues demonstrate a slight overall upward trend despite fluctuations. Revenues decreased from approximately 29,795 million in 2013 to 27,359 million in 2014, representing a noticeable drop. This decline was followed by a recovery with revenues increasing progressively each year afterwards, reaching 31,271 million by the end of 2017. The data indicates resilience and growth in the latter years of the period.

Adjusted Revenues

Adjusted revenues closely mirror the pattern observed in total revenues, starting at 29,738 million in 2013 and dropping to 27,360 million in 2014. The adjusted figure then increases steadily over the subsequent years, surpassing the initial level to reach 31,400 million by 2017. The consistency between reported revenues and adjusted revenues suggests limited adjustments were made and that the core revenue base strengthened over time.

Overall Insights

The data indicates a company recovering from a dip in revenue early in the period and achieving growth through sustained increases in subsequent years. The increase in revenues by approximately 14% from 2014 to 2017 signals positive business momentum. Such trends suggest effective management strategies in revenue growth or favorable market conditions post-2014.

Net Income Attributable to Shareholders

The net income attributable to shareholders showed a generally increasing trend over the five-year period. From 2013 to 2016, there was a gradual upward movement from 3691 million US dollars to 3926 million US dollars. A significant increase occurred in 2017, with net income reaching 5247 million US dollars, representing a notable acceleration compared to previous years.

Adjusted Net Income

The adjusted net income displayed a different trend compared to net income attributable to shareholders. Starting at 4448 million US dollars in 2013, it declined over the next two years, reaching a low of 3662 million US dollars in 2015. Subsequently, adjusted net income rebounded in 2016 and 2017, rising to 4099 million US dollars and then to 4431 million US dollars, respectively. Despite recovery, the adjusted net income in 2017 did not surpass the initial 2013 level.

Comparative Insights

The divergence between net income attributable to shareholders and adjusted net income over these years may suggest variations in non-recurring items, accounting adjustments, or other factors impacting reported net income. The marked increase in net income in 2017, contrasted with a more moderate increase in adjusted net income, indicates that elements excluded from adjusted calculations significantly influenced the reported earnings in that year.