Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
Time Warner Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Price to Book Value (P/BV) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Time Warner Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
Time Warner Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
The analysis of liquidity ratios over the given periods shows varying trends that highlight changes in short-term financial stability and cash management efficiency.
- Current ratio
- The current ratio demonstrates fluctuations within a range generally above 1.4, indicating that the company maintained sufficient current assets to cover current liabilities during most quarters. Notably, the ratio peaked at 1.97 in June 2014, reflecting a period of strong liquidity. However, from December 2016 onwards, there is a discernible decline, culminating in a low of 1.08 by March 2018. This decrease suggests a weakening in the company's ability to meet short-term obligations with current assets toward the end of the period under review.
- Quick ratio
- The quick ratio mirrors the overall pattern of the current ratio but remains consistently lower, which is expected as it excludes inventory. It peaked at 1.59 in June 2014, coinciding with the high point of the current ratio, indicative of strong liquid assets excluding inventories. Post that peak, the quick ratio experienced a downward trend, falling below 1.0 in the final quarters, with a minimum of 0.85 in March 2018. This decline underscores a reduction in highly liquid assets relative to current liabilities, signaling potential liquidity concerns.
- Cash ratio
- The cash ratio shows the most volatility and generally registers the lowest values among the liquidity ratios, consistently below 0.5. There was a significant increase reaching 0.62 in June 2014, suggesting improved cash and cash equivalents availability at that time. However, thereafter, the ratio decreased and fluctuated at lower levels, dropping to as low as 0.13 by March 2018. This trend indicates reduced cash reserves relative to current liabilities in the later periods, raising concerns about immediate cash availability for obligations.
In summary, the liquidity position exhibited a peak around mid-2014 followed by a gradual and sustained decline through early 2018. While the company generally maintained a current ratio above 1 through most of the timeframe, both quick and cash ratios show a more pronounced deterioration. This pattern may reflect strategic changes in asset composition, increased liabilities, or operational factors impacting liquid resources. The declining ratios toward the end of the period warrant attention to ensure ongoing liquidity sufficiency.
Current Ratio
Time Warner Inc., current ratio calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibit some volatility over the observed periods but generally display a fluctuating pattern without a consistent upward or downward trend. Starting at 12,624 million USD in March 2013, the values slightly decrease and increase intermittently, reaching a peak of 15,219 million USD in December 2017 before a small decline to 15,138 million USD by March 2018.
- Current Liabilities
- Current liabilities also fluctuate significantly during the period. An initial slight decrease from 8,170 million USD in March 2013 is followed by various increases and decreases. Notably, there is a sharp increase towards the end of the period, peaking at 14,077 million USD in December 2017, before slightly declining to 12,945 million USD by March 2018.
- Current Ratio
- The current ratio reflects the company's liquidity position and shows variability across quarters. It begins at 1.55 in March 2013, rises to a peak of 1.97 in June 2014, then declines to lower values around 1.4 to 1.5 in the mid-period. Towards the end of the observed timeline, it drops significantly to near 1.08 in December 2017 and slightly improves to 1.17 by March 2018, indicating a decreasing liquidity trend relative to earlier periods.
- Overall Analysis
- Throughout the period, current assets remain relatively stable with moderate fluctuations, whereas current liabilities show an upward trend, especially in the last year. This increase in liabilities combined with relatively stable asset levels causes a decline in the current ratio, suggesting a weakening short-term liquidity position near the end of the period examined. The shrinking current ratio implies that the company's ability to cover short-term obligations with current assets has diminished, which might warrant further attention in liquidity management strategies.
Quick Ratio
Time Warner Inc., quick ratio calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | ||||||||||||||||||||||||||||
| Receivables, less allowances | ||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in the key liquidity indicators over the examined period. Total quick assets exhibit variability, with values generally ranging between approximately 8,300 million and 12,000 million US dollars. Peaks in quick assets are observed around mid-2014, mid-2016, and late 2017 to early 2018, indicating some strengthening in liquid resources during these intervals.
Current liabilities, on the other hand, demonstrate a somewhat uneven trend. After a moderate decline from early 2013 to mid-2014, liabilities spike markedly during the final quarter of 2017, reaching a high point significantly above previous figures, before slightly declining in the first quarter of 2018. The elevated liabilities in late 2017 could indicate increased short-term obligations or borrowings during that time.
The quick ratio, reflecting the company's short-term liquidity position, follows a generally fluctuating pattern. It peaks notably at 1.59 during the second quarter of 2014 and again reaches elevated levels near or above 1.3 during mid-2016. However, there is a discernible decline starting in late 2017, where the ratio drops below 1, reaching approximately 0.85 before a mild recovery to 0.92. This decline below unity suggests a potential decrease in liquidity strength relative to immediate liabilities during that period.
Overall, the data indicates periods of both strengthening and weakening liquidity. The fluctuations in quick assets combined with largely variable current liabilities result in a quick ratio oscillating above and below the critical threshold of 1. This signals caution in assessing the company's ability to meet short-term obligations consistently across quarters. The pronounced increase in current liabilities and simultaneous decline in the quick ratio towards the end of the data set warrant focused attention for potential liquidity risks during that timeframe.
- Total Quick Assets
- Show consistent variability with peaks in mid-2014, mid-2016, and late 2017 to early 2018, ranging roughly between 8,300 and 12,000 million USD.
- Current Liabilities
- Trend generally uneven; notable decrease from early 2013 to mid-2014 followed by a significant spike in late 2017, reaching the highest levels in the observed period.
- Quick Ratio
- Fluctuates notably, with highs above 1.3 during 2014 and 2016 but declining below 1 in late 2017, indicating a reduction in immediate liquidity coverage relative to current liabilities.
Cash Ratio
Time Warner Inc., cash ratio calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | ||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit a fluctuating trend over the observed periods. Beginning at 2,493 million USD in March 2013, the value declines through September of the same year to a low of 1,567 million USD before recovering to 3,546 million USD in March 2014. Following this peak, the cash assets decrease again with intermittent increases, peaking notably in June 2014 at 4,480 million USD, then gradually declining overall toward early 2015 and remaining relatively volatile thereafter. A significant downward movement is seen in December 2016 and March 2017, reaching amounts near or below 1,600 million USD, before displaying some recovery and volatility through March 2018, ending at 1,691 million USD.
- Current Liabilities
- Current liabilities remain consistently high throughout the periods analyzed, fluctuating within the range of approximately 7,000 to over 14,000 million USD. Early in the series, liabilities hover around 8,000 million USD, decreasing slightly mid-2014, then rising again with notable spikes especially in late 2016 through 2017. The period ends with the highest liabilities recorded in the entire sequence, peaking at 14,077 million USD in December 2017 and slightly decreasing to 12,945 million USD in March 2018, illustrating growing short-term financial obligations.
- Cash Ratio
- The cash ratio, which measures the ability to cover current liabilities with cash assets, shows a declining trend overall, indicating reduced liquidity relative to short-term obligations. Starting at a moderate 0.31 in March 2013, it decreases to a low of 0.20 by September 2013 before a brief improvement peaking at 0.62 in June 2014. After this peak, the ratio trends downward with fluctuations, reaching as low as 0.13 in March 2018. This declining ratio signals increasing pressure on liquid assets to meet current liabilities, reflecting diminishing short-term financial flexibility.