Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Time Warner Inc., solvency 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).
- Debt to Equity Ratio
-
The debt to equity ratio exhibited an overall upward trend from March 31, 2013 to December 31, 2015, rising from 0.65 to a peak of 1.01. This indicates an increasing reliance on debt financing relative to equity during this period. Subsequently, from March 31, 2016 to March 31, 2018, the ratio generally declined from around 0.99 to 0.75, reflecting a reduction in leverage relative to equity toward the end of the series.
- Debt to Capital Ratio
-
The debt to capital ratio showed a steady increase between March 31, 2013 and June 30, 2016, moving from 0.39 to a stable range around 0.5. This indicates a gradual shift toward greater use of debt as part of the total capital structure. However, from June 30, 2016 to March 31, 2018, the ratio declined moderately to 0.43, suggesting a slight decrease in debt proportion in the capital employed.
- Debt to Assets Ratio
-
This ratio remained relatively steady, fluctuating slightly between 0.29 at the beginning of the period and a slight peak of 0.38 by mid-2016. Thereafter, it followed a modest downward trend from 0.37 to 0.32 by the end of the observation period. This trend suggests a stable or mildly improving asset coverage relative to debt over time.
- Financial Leverage Ratio
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The financial leverage ratio increased from 2.23 in March 2013 to a peak of around 2.71 between September 2016 and December 2016, indicating higher amplification of equity returns due to use of debt or other liabilities. From early 2017 onward, the ratio gradually declined to 2.31 by March 2018, pointing to a modest deleveraging or increased equity base supporting assets.
Debt Ratios
Debt to Equity
Time Warner Inc., debt to equity 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) | ||||||||||||||||||||||||||||
| Debt due within one year | 3,922) | 5,450) | 1,157) | 1,155) | 808) | 1,947) | 52) | 50) | 51) | 198) | 199) | 1,513) | 1,299) | 1,118) | 1,168) | 168) | 65) | 66) | 18) | 317) | 316) | |||||||
| Long-term debt, excluding due within one year | 18,331) | 18,294) | 21,898) | 21,843) | 22,402) | 22,392) | 24,419) | 24,418) | 23,622) | 23,594) | 22,728) | 22,281) | 21,172) | 21,376) | 21,389) | 22,395) | 20,226) | 20,099) | 19,145) | 19,129) | 19,125) | |||||||
| Total debt | 22,253) | 23,744) | 23,055) | 22,998) | 23,210) | 24,339) | 24,471) | 24,468) | 23,673) | 23,792) | 22,927) | 23,794) | 22,471) | 22,494) | 22,557) | 22,563) | 20,291) | 20,165) | 19,163) | 19,446) | 19,441) | |||||||
| Total Time Warner Inc. shareholders’ equity | 29,805) | 28,375) | 27,267) | 25,987) | 25,425) | 24,335) | 24,278) | 23,888) | 23,843) | 23,619) | 23,648) | 24,025) | 24,198) | 24,476) | 25,230) | 25,907) | 30,044) | 29,904) | 29,929) | 29,782) | 29,991) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 0.75 | 0.84 | 0.85 | 0.88 | 0.91 | 1.00 | 1.01 | 1.02 | 0.99 | 1.01 | 0.97 | 0.99 | 0.93 | 0.92 | 0.89 | 0.87 | 0.68 | 0.67 | 0.64 | 0.65 | 0.65 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, 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
Debt to equity = Total debt ÷ Total Time Warner Inc. shareholders’ equity
= 22,253 ÷ 29,805 = 0.75
2 Click competitor name to see calculations.
The financial data exhibits distinct trends in the company's debt and equity positions over the observed quarters. There is a noticeable escalation in total debt from March 2013 to December 2016, peaking close to the end of 2016. Following this period, total debt generally decreases through to March 2018. This suggests an initial phase of increased borrowing followed by a strategic reduction in debt levels.
Total shareholders’ equity shows a fluctuating pattern with a significant decline occurring between March 2014 and December 2014. After reaching this trough, equity stabilizes and then gradually increases, with a marked improvement starting in early 2017 and continuing into 2018. This trend could indicate periods of operational or market challenges followed by recovery and enhanced shareholder value.
The debt to equity ratio mirrors these movements. It rises steadily from early 2014, peaking above 1.0 around late 2015 through mid-2016, indicating that the company was financing more through debt relative to equity during these quarters. After mid-2016, the ratio declines consistently, falling below 1 by the end of 2017 and further decreasing to 0.75 by March 2018. This decline points to a deleveraging trend and potentially an improvement in the company's capital structure and risk profile.
- Total Debt
- Increased from around $19.4 billion in early 2013 to approximately $24.5 billion by late 2016, followed by a decrease to about $22.3 billion by early 2018.
- Total Shareholders’ Equity
- Remained near $30 billion until early 2014, then dropped to roughly $24.5 billion by the end of 2014, stabilizing thereafter and rising to nearly $29.8 billion by the first quarter of 2018.
- Debt to Equity Ratio
- Rose from 0.65 in early 2013 to slightly above 1.0 by late 2015 to mid-2016, indicating increased leverage, then declined consistently to 0.75 by early 2018, reflecting deleveraging and a stronger equity base relative to debt.
Debt to Capital
Time Warner Inc., debt to capital calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Debt due within one year | 3,922) | 5,450) | 1,157) | 1,155) | 808) | 1,947) | 52) | 50) | 51) | 198) | 199) | 1,513) | 1,299) | 1,118) | 1,168) | 168) | 65) | 66) | 18) | 317) | 316) | |||||||
| Long-term debt, excluding due within one year | 18,331) | 18,294) | 21,898) | 21,843) | 22,402) | 22,392) | 24,419) | 24,418) | 23,622) | 23,594) | 22,728) | 22,281) | 21,172) | 21,376) | 21,389) | 22,395) | 20,226) | 20,099) | 19,145) | 19,129) | 19,125) | |||||||
| Total debt | 22,253) | 23,744) | 23,055) | 22,998) | 23,210) | 24,339) | 24,471) | 24,468) | 23,673) | 23,792) | 22,927) | 23,794) | 22,471) | 22,494) | 22,557) | 22,563) | 20,291) | 20,165) | 19,163) | 19,446) | 19,441) | |||||||
| Total Time Warner Inc. shareholders’ equity | 29,805) | 28,375) | 27,267) | 25,987) | 25,425) | 24,335) | 24,278) | 23,888) | 23,843) | 23,619) | 23,648) | 24,025) | 24,198) | 24,476) | 25,230) | 25,907) | 30,044) | 29,904) | 29,929) | 29,782) | 29,991) | |||||||
| Total capital | 52,058) | 52,119) | 50,322) | 48,985) | 48,635) | 48,674) | 48,749) | 48,356) | 47,516) | 47,411) | 46,575) | 47,819) | 46,669) | 46,970) | 47,787) | 48,470) | 50,335) | 50,069) | 49,092) | 49,228) | 49,432) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 0.43 | 0.46 | 0.46 | 0.47 | 0.48 | 0.50 | 0.50 | 0.51 | 0.50 | 0.50 | 0.49 | 0.50 | 0.48 | 0.48 | 0.47 | 0.47 | 0.40 | 0.40 | 0.39 | 0.40 | 0.39 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, 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
Debt to capital = Total debt ÷ Total capital
= 22,253 ÷ 52,058 = 0.43
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in the company's leverage metrics over the observed periods. Total debt fluctuated modestly but generally experienced an upward trajectory from March 2013 to December 2016, peaking in mid-2016 at approximately $24.5 billion. Following this peak, total debt showed periods of slight reduction and minor increases, ultimately decreasing towards $22.3 billion by March 2018.
Total capital demonstrated a relatively stable trend with minor variations throughout the period. It started near $49.4 billion in early 2013, experienced a mild decline toward approximately $46.7 billion by the end of 2014, then displayed gradual growth afterward, reaching over $52 billion by March 2018. This indicates overall growth in the capital base after a temporary dip during 2014.
The debt to capital ratio followed a noteworthy pattern, reflecting the dynamics between debt and capital components. Beginning at about 0.39 in early 2013, the ratio increased steadily through 2014 and 2015, reaching a high near 0.51 by mid-2016. This upward trend suggests increasing reliance on debt financing relative to total capital during this timeframe. Following mid-2016, the ratio gradually declined to 0.43 by early 2018, signaling a reduction in leverage relative to capital.
Overall, the data indicates a phase of rising leverage through the middle of the examined period, driven by increased debt levels alongside relatively stable or slightly declining capital. After this peak, deleveraging tendencies emerged with a reduction in the debt to capital ratio and stabilization or growth in total capital. The trends imply strategic adjustments in capital structure, potentially reflecting responses to market conditions, financing needs, or corporate policies aimed at optimizing financial leverage.
- Total Debt
- Generally increased from around $19.4 billion to a peak near $24.5 billion by June 2016, followed by moderate fluctuations and a decline to approximately $22.3 billion by March 2018.
- Total Capital
- Experienced an initial decrease from roughly $49.4 billion to $46.7 billion through 2014, then showed a steady increase to exceed $52 billion by early 2018, indicating growth in the company’s capital base.
- Debt to Capital Ratio
- Rose from about 0.39 in early 2013 to a peak near 0.51 by mid-2016, reflecting increased leverage, then declined steadily to 0.43 by early 2018, indicating a reduction in leverage relative to capital.
Debt to Assets
Time Warner Inc., debt to assets calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Debt due within one year | 3,922) | 5,450) | 1,157) | 1,155) | 808) | 1,947) | 52) | 50) | 51) | 198) | 199) | 1,513) | 1,299) | 1,118) | 1,168) | 168) | 65) | 66) | 18) | 317) | 316) | |||||||
| Long-term debt, excluding due within one year | 18,331) | 18,294) | 21,898) | 21,843) | 22,402) | 22,392) | 24,419) | 24,418) | 23,622) | 23,594) | 22,728) | 22,281) | 21,172) | 21,376) | 21,389) | 22,395) | 20,226) | 20,099) | 19,145) | 19,129) | 19,125) | |||||||
| Total debt | 22,253) | 23,744) | 23,055) | 22,998) | 23,210) | 24,339) | 24,471) | 24,468) | 23,673) | 23,792) | 22,927) | 23,794) | 22,471) | 22,494) | 22,557) | 22,563) | 20,291) | 20,165) | 19,163) | 19,446) | 19,441) | |||||||
| Total assets | 68,997) | 69,209) | 68,343) | 66,096) | 65,649) | 65,966) | 65,764) | 64,127) | 63,254) | 63,848) | 62,674) | 63,425) | 62,195) | 63,259) | 63,095) | 64,490) | 68,199) | 67,994) | 66,453) | 66,322) | 66,947) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.32 | 0.34 | 0.34 | 0.35 | 0.35 | 0.37 | 0.37 | 0.38 | 0.37 | 0.37 | 0.37 | 0.38 | 0.36 | 0.36 | 0.36 | 0.35 | 0.30 | 0.30 | 0.29 | 0.29 | 0.29 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, 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
Debt to assets = Total debt ÷ Total assets
= 22,253 ÷ 68,997 = 0.32
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited moderate fluctuations across the reported periods. Initially, it remained relatively stable around 19,400 million US dollars through the first year. From early 2014, a noticeable upward trend emerged, peaking at approximately 24,800 million US dollars in late 2016. Following this peak, total debt generally stabilized, with some minor variances, ending at 22,253 million US dollars by the first quarter of 2018. Overall, the data reflects a gradual increase in debt over the five-year span, with the highest levels recorded between 2015 and 2017 before a slight tapering.
- Total Assets
- Total assets remained mostly stable with minor variations. Starting near 67,000 million US dollars in early 2013, total assets displayed some decline reaching a low of approximately 63,000 million US dollars around late 2014 and early 2015. After this period, a steady recovery is evident, with assets increasing progressively towards the end of the timeline, reaching nearly 69,000 million US dollars by the first quarter of 2018. This indicates gradual asset growth following a mid-period dip, suggesting potential reinvestment or asset value appreciation over time.
- Debt to Assets Ratio
- The debt to assets ratio shows a clear increasing trend from 0.29 in early 2013 to a peak of about 0.38 in mid-2015 and mid-2016, indicating a growing proportion of debt relative to total assets during this timeframe. After reaching these elevated levels, the ratio demonstrates a gradual decline, finishing at 0.32 by the first quarter of 2018. This pattern reflects an initial rise in financial leverage followed by a measured deleveraging or asset base growth outpacing debt increases in the later periods.
Financial Leverage
Time Warner Inc., financial leverage 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) | ||||||||||||||||||||||||||||
| Total assets | 68,997) | 69,209) | 68,343) | 66,096) | 65,649) | 65,966) | 65,764) | 64,127) | 63,254) | 63,848) | 62,674) | 63,425) | 62,195) | 63,259) | 63,095) | 64,490) | 68,199) | 67,994) | 66,453) | 66,322) | 66,947) | |||||||
| Total Time Warner Inc. shareholders’ equity | 29,805) | 28,375) | 27,267) | 25,987) | 25,425) | 24,335) | 24,278) | 23,888) | 23,843) | 23,619) | 23,648) | 24,025) | 24,198) | 24,476) | 25,230) | 25,907) | 30,044) | 29,904) | 29,929) | 29,782) | 29,991) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 2.31 | 2.44 | 2.51 | 2.54 | 2.58 | 2.71 | 2.71 | 2.68 | 2.65 | 2.70 | 2.65 | 2.64 | 2.57 | 2.58 | 2.50 | 2.49 | 2.27 | 2.27 | 2.22 | 2.23 | 2.23 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, 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
Financial leverage = Total assets ÷ Total Time Warner Inc. shareholders’ equity
= 68,997 ÷ 29,805 = 2.31
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's financial position over the evaluated periods.
- Total Assets
- Total assets exhibited a generally stable trend with slight fluctuations across the quarters. Beginning at approximately $66.9 billion in March 2013, total assets marginally decreased and experienced some volatility, reaching a low near $62.0 billion by March 2015. From mid-2015 onwards, the asset base showed a recovery, gradually increasing to around $69.0 billion by March 2018. This reflects a moderate growth in asset accumulation over the five-year period, with some periods of contraction likely related to operational or investment adjustments.
- Total Shareholders’ Equity
- Shareholders’ equity displayed a downward trend from March 2013, starting near $30.0 billion, declining significantly to about $23.4 billion by December 2014. This decline indicates possible equity reductions through losses, dividends, or share repurchases during that timeframe. From early 2015 through to March 2018, equity stabilized and then gradually increased, reaching approximately $29.8 billion. This suggests a recovery in retained earnings or capital inflows, contributing to improved equity standing toward the end of the period.
- Financial Leverage Ratio
- Financial leverage showed an overall increasing trend from 2.23 in March 2013 to a peak around 2.71 during late 2016. This indicates that the company increased its use of debt relative to equity, corresponding with the earlier decline in equity figures. However, after the peak, the leverage ratio declined steadily to about 2.31 by March 2018, reflecting a deleveraging phase, potentially due to equity growth or debt reduction. This pattern suggests evolving risk management strategies and capital structure optimization in response to changing financial conditions.
In summary, the company experienced an initial phase of equity reduction accompanied by higher leverage, potentially increasing financial risk. Subsequently, the financial position improved with asset growth, shareholder equity recovery, and reduced leverage, indicating a gradual reinforcement of financial stability by the end of the observed period.