Current Ratio
since 2005
Calculation
Time Warner Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2017 | 1.08 | = | 15,219) | ÷ | 14,077) |
| Dec 31, 2016 | 1.39 | = | 13,485) | ÷ | 9,703) |
| Dec 31, 2015 | 1.56 | = | 12,513) | ÷ | 8,002) |
| Dec 31, 2014 | 1.43 | = | 13,180) | ÷ | 9,204) |
| Dec 31, 2013 | 1.53 | = | 12,844) | ÷ | 8,383) |
| Dec 31, 2012 | 1.35 | = | 13,288) | ÷ | 9,829) |
| Dec 31, 2011 | 1.51 | = | 13,432) | ÷ | 8,922) |
| Dec 31, 2010 | 1.52 | = | 13,138) | ÷ | 8,643) |
| Dec 31, 2009 | 1.48 | = | 13,007) | ÷ | 8,765) |
| Dec 31, 2008 | 1.19 | = | 16,602) | ÷ | 13,976) |
| Dec 31, 2007 | 1.02 | = | 12,451) | ÷ | 12,193) |
| Dec 31, 2006 | 0.85 | = | 10,851) | ÷ | 12,780) |
| Dec 31, 2005 | 1.07 | = | 13,463) | ÷ | 12,588) |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity position of the organization from 2005 to 2017 is characterized by three distinct phases: an initial period of volatility and liquidity pressure, a sustained period of strengthened short-term solvency, and a final sharp contraction in the current ratio.
- Liquidity Volatility and Initial Pressure (2005–2008)
- During this period, the current ratio fluctuated between a high of 1.19 and a low of 0.85. A notable liquidity deficit occurred in 2006, where the current ratio fell below 1.00, indicating that current liabilities exceeded current assets. This suggests a period of heightened short-term financial risk before a recovery began in 2007.
- Sustained Liquidity Improvement (2009–2016)
- A significant structural shift in the balance sheet is observed starting in 2009, characterized by a substantial reduction in current liabilities, which dropped from 13,976 million US$ in 2008 to 8,765 million US$ in 2009. This contraction in liabilities, coupled with stable current assets, propelled the current ratio to a peak of 1.56 in 2015. Throughout this eight-year window, the ratio remained consistently above 1.35, reflecting a robust capacity to meet short-term obligations.
- Recent Liquidity Contraction (2017)
- The period of strengthened solvency concluded in 2017 with a sharp decline in the current ratio to 1.08. This movement was driven by a significant increase in current liabilities, which rose to 14,077 million US$, the highest level recorded in the analyzed period. Although current assets also increased to 15,219 million US$, the disproportionate growth in liabilities returned the company to a marginal liquidity position similar to that observed in 2005.
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Comparison to Competitors
Time Warner Inc., current ratio, long-term trends, comparison to competitors
| Time Warner Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2017 | 1.08 | 5.14 | 0.74 | 12.92 | 1.40 | 0.81 |
| Dec 31, 2016 | 1.39 | 6.29 | 0.76 | 11.97 | 1.25 | 1.01 |
| Dec 31, 2015 | 1.56 | 4.67 | 0.68 | 11.25 | 1.54 | 1.03 |
| Dec 31, 2014 | 1.43 | 4.80 | 0.78 | 9.60 | 1.48 | 1.14 |
| Dec 31, 2013 | 1.53 | 4.58 | 0.74 | 11.88 | 1.42 | 1.21 |
| Dec 31, 2012 | 1.35 | 4.22 | 1.20 | 10.71 | 1.34 | 1.07 |
| Dec 31, 2011 | 1.51 | 5.92 | 0.65 | — | 1.49 | 1.14 |
| Dec 31, 2010 | 1.52 | 4.16 | 1.08 | — | 1.65 | 1.11 |
| Dec 31, 2009 | 1.48 | 10.62 | 0.44 | — | 1.82 | 1.33 |
| Dec 31, 2008 | 1.19 | 8.77 | 0.42 | — | 1.67 | 1.01 |
| Dec 31, 2007 | 1.02 | 8.49 | 0.46 | — | 1.96 | 0.99 |
| Dec 31, 2006 | 0.85 | 10.00 | 0.70 | — | 2.21 | 0.94 |
| Dec 31, 2005 | 1.07 | 12.08 | 0.41 | — | 1.77 | 0.96 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Media & Entertainment)
Time Warner Inc., current ratio, long-term trends, comparison to sector (media & entertainment)
| Time Warner Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2017 | 1.08 | 2.85 |
| Dec 31, 2016 | 1.39 | 2.86 |
| Dec 31, 2015 | 1.56 | 2.47 |
| Dec 31, 2014 | 1.43 | 2.46 |
| Dec 31, 2013 | 1.53 | 2.35 |
| Dec 31, 2012 | 1.35 | 2.31 |
| Dec 31, 2011 | 1.51 | 2.17 |
| Dec 31, 2010 | 1.52 | 2.14 |
| Dec 31, 2009 | 1.48 | 2.33 |
| Dec 31, 2008 | 1.19 | 1.56 |
| Dec 31, 2007 | 1.02 | 1.51 |
| Dec 31, 2006 | 0.85 | 1.47 |
| Dec 31, 2005 | 1.07 | 1.27 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Communication Services)
Time Warner Inc., current ratio, long-term trends, comparison to industry (communication services)
| Time Warner Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2017 | 1.08 | 1.65 |
| Dec 31, 2016 | 1.39 | 1.69 |
| Dec 31, 2015 | 1.56 | 1.45 |
| Dec 31, 2014 | 1.43 | 1.61 |
| Dec 31, 2013 | 1.53 | 1.90 |
| Dec 31, 2012 | 1.35 | 1.44 |
| Dec 31, 2011 | 1.51 | 1.35 |
| Dec 31, 2010 | 1.52 | 1.12 |
| Dec 31, 2009 | 1.48 | 1.08 |
| Dec 31, 2008 | 1.19 | 0.93 |
| Dec 31, 2007 | 1.02 | 0.89 |
| Dec 31, 2006 | 0.85 | 0.83 |
| Dec 31, 2005 | 1.07 | 0.78 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).