Debt to Equity
since 2005
Calculation
Time Warner Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total Time Warner Inc. shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2017 | 0.84 | = | 23,744) | ÷ | 28,375) |
| Dec 31, 2016 | 1.00 | = | 24,339) | ÷ | 24,335) |
| Dec 31, 2015 | 1.01 | = | 23,792) | ÷ | 23,619) |
| Dec 31, 2014 | 0.92 | = | 22,494) | ÷ | 24,476) |
| Dec 31, 2013 | 0.67 | = | 20,165) | ÷ | 29,904) |
| Dec 31, 2012 | 0.67 | = | 19,871) | ÷ | 29,877) |
| Dec 31, 2011 | 0.65 | = | 19,524) | ÷ | 29,957) |
| Dec 31, 2010 | 0.50 | = | 16,549) | ÷ | 32,940) |
| Dec 31, 2009 | 0.46 | = | 15,416) | ÷ | 33,383) |
| Dec 31, 2008 | 0.94 | = | 39,683) | ÷ | 42,288) |
| Dec 31, 2007 | 0.63 | = | 37,130) | ÷ | 58,536) |
| Dec 31, 2006 | 0.58 | = | 34,997) | ÷ | 60,389) |
| Dec 31, 2005 | 0.32 | = | 20,330) | ÷ | 62,715) |
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 financial trajectory between 2005 and 2017 is characterized by a general increase in financial leverage, marked by significant volatility in total debt levels and a long-term decline in shareholders' equity. The debt-to-equity ratio, which began at a conservative 0.32 in 2005, experienced two distinct peaks, reflecting periods of increased borrowing or equity erosion.
- Total Debt Volatility
- A substantial increase in total debt occurred between 2005 and 2008, with obligations rising from 20,330 million USD to a peak of 39,683 million USD. This was followed by a sharp contraction in 2009, where total debt dropped to 15,416 million USD. From 2010 through 2016, a steady upward trend resumed, peaking again at 24,339 million USD before a slight decrease to 23,744 million USD in 2017.
- Shareholders' Equity Erosion
- Shareholders' equity exhibited a consistent downward trend over the analyzed period. Starting at 62,715 million USD in 2005, equity declined steadily, falling below the 30,000 million USD threshold by 2011. The lowest point was reached in 2015 at 23,619 million USD, although a modest recovery to 28,375 million USD was noted by the end of 2017.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio mirrored the fluctuations in both debt and equity, showing a primary spike to 0.94 in 2008. The significant debt reduction in 2009 corrected the ratio to 0.46. However, the combination of rising debt and diminishing equity throughout the early 2010s led to a second surge, with the ratio exceeding 1.00 in 2015. This indicates a period where total debt surpassed total shareholders' equity. The ratio concluded the period at 0.84 in 2017, reflecting a slight improvement in the leverage position.
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Comparison to Competitors
Time Warner Inc., debt to equity, long-term trends, comparison to competitors
| Time Warner Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2017 | 0.84 | 0.03 | 0.94 | 0.00 | 1.81 | 0.61 |
| Dec 31, 2016 | 1.00 | 0.03 | 1.13 | 0.00 | 1.26 | 0.47 |
| Dec 31, 2015 | 1.01 | 0.04 | 1.01 | 0.00 | 1.07 | 0.39 |
| Dec 31, 2014 | 0.92 | 0.05 | 0.92 | 0.01 | 0.48 | 0.33 |
| Dec 31, 2013 | 0.67 | 0.06 | 0.94 | 0.03 | 0.37 | 0.31 |
| Dec 31, 2012 | 0.67 | 0.08 | 0.82 | 0.20 | 0.54 | 0.36 |
| Dec 31, 2011 | 0.65 | 0.07 | 0.83 | — | 0.62 | 0.37 |
| Dec 31, 2010 | 0.50 | 0.07 | 0.71 | — | 0.69 | 0.33 |
| Dec 31, 2009 | 0.46 | 0.00 | 0.68 | — | 1.00 | 0.38 |
| Dec 31, 2008 | 0.94 | 0.00 | 0.80 | — | 0.00 | 0.45 |
| Dec 31, 2007 | 0.63 | 0.00 | 0.76 | — | 0.00 | 0.49 |
| Dec 31, 2006 | 0.58 | 0.00 | 0.70 | — | 0.00 | 0.43 |
| Dec 31, 2005 | 0.32 | 0.00 | 0.58 | — | 0.00 | 0.48 |
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., debt to equity, long-term trends, comparison to sector (media & entertainment)
| Time Warner Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2017 | 0.84 | 0.29 |
| Dec 31, 2016 | 1.00 | 0.30 |
| Dec 31, 2015 | 1.01 | 0.29 |
| Dec 31, 2014 | 0.92 | 0.29 |
| Dec 31, 2013 | 0.67 | 0.34 |
| Dec 31, 2012 | 0.67 | 0.36 |
| Dec 31, 2011 | 0.65 | 0.40 |
| Dec 31, 2010 | 0.50 | 0.37 |
| Dec 31, 2009 | 0.46 | 0.37 |
| Dec 31, 2008 | 0.94 | 0.46 |
| Dec 31, 2007 | 0.63 | 0.49 |
| Dec 31, 2006 | 0.58 | 0.47 |
| Dec 31, 2005 | 0.32 | 0.47 |
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., debt to equity, long-term trends, comparison to industry (communication services)
| Time Warner Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2017 | 0.84 | 0.75 |
| Dec 31, 2016 | 1.00 | 0.75 |
| Dec 31, 2015 | 1.01 | 0.81 |
| Dec 31, 2014 | 0.92 | 0.81 |
| Dec 31, 2013 | 0.67 | 0.75 |
| Dec 31, 2012 | 0.67 | 0.62 |
| Dec 31, 2011 | 0.65 | 0.62 |
| Dec 31, 2010 | 0.50 | 0.60 |
| Dec 31, 2009 | 0.46 | 0.69 |
| Dec 31, 2008 | 0.94 | 0.73 |
| Dec 31, 2007 | 0.63 | 0.54 |
| Dec 31, 2006 | 0.58 | 0.54 |
| Dec 31, 2005 | 0.32 | 0.62 |
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).