Time Warner Cable Inc. (NYSE:TWC)

The financial data reveals several significant trends over the five-year period analyzed. The total asset turnover ratios, both reported and adjusted, show a consistent upward trend, indicating improved efficiency in utilizing assets to generate revenue. Specifically, the reported total asset turnover increased from 0.41 to 0.48, while the adjusted counterpart rose from 0.40 to 0.47.

Current ratios, reflecting short-term liquidity, show a marked decline initially, reaching the lowest point around 2013, followed by a moderate recovery by 2015. The reported current ratio fell from 1.19 in 2011 to 0.41 in 2013, then improved to 0.62 by 2015. The adjusted figures follow a similar path, suggesting a period of constrained liquidity with some stabilization towards the end of the period.

Leverage metrics display a downward trend, indicating a reduction in financial leverage and reliance on debt over time. The reported debt to equity ratio decreased from 3.51 to 2.50, while the adjusted ratio dropped more significantly from 1.53 to 1.05. Similarly, debt to capital ratios show a gradual decline from 0.78 to 0.71 (reported) and from 0.60 to 0.51 (adjusted). Financial leverage ratios also diminished, with reported leverage falling from 6.41 to 5.48 and adjusted leverage from 2.75 to 2.26. These declines suggest improved balance sheet strength and reduced risk exposure.

Profitability indicators demonstrate a mixed pattern. Reported net profit margins initially increased from 8.46% to a peak of 10.08% in 2012, followed by fluctuations and a decline to 7.78% by 2015. Adjusted net profit margins rose more substantially, peaking at 13.82% in 2013 before decreasing to 9.96% in 2015. This variance may highlight differences in accounting treatments or one-time adjustments affecting profitability.

Return measures show a generally decreasing trend. Reported return on equity (ROE) peaked at 29.61% in 2012 and then decreased steadily to 20.5% by 2015. Adjusted ROE followed a similar pattern but with lower values, dropping from 16.07% in 2013 to 10.66% in 2015. Return on assets (ROA), both reported and adjusted, increased up to 2013 but subsequently declined, with reported ROA falling from 4.33% in 2012 to 3.74% in 2015 and adjusted ROA moving from 6.27% in 2013 to 4.72% in 2015. These trends may indicate challenges in maintaining profitability levels despite improved asset utilization.

In summary, the data suggests enhanced operational efficiency and reduced financial leverage over the examined period. However, liquidity experienced pressure early on with some recovery later, and profitability, while initially strong, showed a decline in later years. These patterns point to a company undergoing strategic adjustments in asset management and capital structure, facing some headwinds in sustaining profit margins and returns.

The financial data reflects steady growth in several key metrics over the five-year period ending December 31, 2015. Revenue shows consistent annual increases, rising from approximately 19.7 billion US dollars in 2011 to nearly 23.7 billion US dollars in 2015. This indicates a positive trend in the company's ability to generate sales.

Total assets remain relatively stable throughout the period, fluctuating slightly but generally maintaining a level around 48 to 49 billion US dollars. The marginal increase observed by the end of 2015 suggests cautious asset expansion or asset management strategies aimed at optimizing the asset base.

Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit a gradual upward trend. The reported total asset turnover improves from 0.41 in 2011 to 0.48 in 2015, while the adjusted ratio follows a similar pattern, increasing from 0.40 to 0.47 over the same period. This enhancement suggests a more efficient utilization of assets to generate revenue over time.

Adjusted Figures

Adjusted revenue and adjusted total assets closely mirror the reported figures, with slightly higher values in most years. Adjusted revenue increases consistently, paralleling the growth seen in reported revenue. Adjusted total assets also track closely with reported total assets but show a marginally higher asset base by 2015, which might reflect more comprehensive asset valuation or reclassification.

In summary, the data indicates a company experiencing steady revenue growth while maintaining a fairly stable asset base. The upward trajectory in asset turnover ratios highlights improvements in asset efficiency, suggesting enhanced operational performance. The alignment between reported and adjusted figures further supports the reliability of the observed trends.

The analysis of the annual financial data reveals several noteworthy trends regarding liquidity and short-term financial health.

Current Assets

There is a marked decline in current assets from 2011 to 2013, dropping from 6,398 million US dollars to 2,144 million US dollars. Following this low point, current assets exhibit a modest recovery, increasing to 2,459 million US dollars by 2015.

Current Liabilities

Current liabilities demonstrate a more gradual decrease over the same period, falling from 5,370 million US dollars in 2011 to 3,949 million US dollars in 2015. The reduction is steady and less volatile compared to current assets.

Reported Current Ratio

The reported current ratio declines sharply from 1.19 in 2011 to a low of 0.41 in 2013, indicating a deterioration in the company’s ability to cover short-term obligations with current assets. After 2013, the ratio improves somewhat but remains below 1.0, reaching 0.62 in 2015, which suggests ongoing liquidity concerns.

Adjusted Current Assets and Liabilities

The adjusted current assets and liabilities follow a similar pattern to their reported counterparts, with adjusted assets dropping significantly until 2013 before recovering somewhat, and adjusted liabilities declining steadily. These adjustments slightly alter the absolute values but do not change the overall trend.

Adjusted Current Ratio

The adjusted current ratio also diminishes sharply to 0.38 in 2013, reflecting a weak liquidity position, before a gradual improvement to 0.69 by 2015. Although better than the reported ratio in 2013, the adjusted ratio remains below 1.0 throughout the observed period, indicating persistent short-term solvency issues.

Overall, the data evidences a significant liquidity decline culminating in 2013, followed by moderate recovery. However, current ratios remain below the generally accepted threshold of 1.0 in all years except 2011, suggesting the company faced ongoing challenges in maintaining sufficient current assets relative to current liabilities during the period under review.

The financial data reveals several noteworthy trends in the company's capital structure over the five-year period.

Total debt

There is a consistent decline in total debt from US$26,442 million in 2011 to US$22,502 million in 2015. This reduction indicates a gradual decrease in leverage and potential deleveraging efforts by the company.

Total shareholders’ equity

Total equity experienced a slight decrease from US$7,530 million in 2011 to US$6,943 million in 2013, followed by a recovery and growth to US$8,995 million by 2015. This upward trend in the latter years suggests improving retained earnings or additional equity financing.

Reported debt to equity ratio

The reported debt to equity ratio starts at 3.51 in 2011 and increases marginally to 3.67 in 2012 before declining steadily to 2.5 in 2015. The initial increase reflects a short-term rise in leverage or reduced equity, whereas the subsequent decline points to a stronger equity base relative to debt and an overall improvement in financial stability.

Adjusted total debt

Adjusted total debt follows a similar downward path as total debt, decreasing from US$27,138 million in 2011 to US$23,183 million in 2015. This consistency confirms the company's efforts to lower its debt obligations.

Adjusted total equity

The adjusted total equity figures show continuous growth from US$17,732 million in 2011 to US$22,159 million in 2015, indicating favorable adjustments likely associated with non-reported equity components or revaluations. This rise reflects strengthening financial position over time.

Adjusted debt to equity ratio

The adjusted debt to equity ratio decreases steadily from 1.53 in 2011 to 1.05 in 2015. This consistent decline corroborates the company's successful strategy to reduce debt relative to its equity base, enhancing financial leverage and minimizing risk exposure.

In summary, the data demonstrates a clear trend towards deleveraging, an improvement in shareholder equity, and strengthened capital structure over the five-year period. Both reported and adjusted metrics show consistent progress in reducing leverage, indicative of improved financial health and enhanced capacity for sustaining growth or absorbing shocks.

Over the five-year period, several notable trends emerge in the financial leverage metrics. The total debt decreased from $26,442 million in 2011 to $22,502 million in 2015, reflecting a gradual reduction in nominal debt levels. Correspondingly, total capital also showed a slight decline from $33,972 million to $31,497 million during the same timeframe.

The reported debt to capital ratio remained relatively stable between 0.78 and 0.79 from 2011 to 2013, before steadily declining to 0.71 by 2015. This indicates a modest improvement in the company's debt structure relative to its total capital base.

When considering adjusted figures, the adjusted total debt followed a similar downward trajectory, falling from $27,138 million in 2011 to $23,183 million in 2015. In contrast, adjusted total capital experienced a slight increase, rising from $44,870 million to $45,342 million, suggesting growth in the capital base after adjustments.

The adjusted debt to capital ratio exhibited a clearer improvement trend, lowering from 0.60 in 2011 to 0.51 in 2015. This progressive decline indicates enhanced financial leverage conditions, implying that the company was reducing its reliance on debt relative to its adjusted capital over this period.

Total Debt

Decreased steadily over five years, indicating active debt reduction efforts.

Total Capital

Declined slightly, suggesting some contraction in total capital base or changes in capital structure.

Reported Debt to Capital Ratio

Stable initially, followed by a gradual improvement, reflecting a modest strengthening of the balance sheet.

Adjusted Total Debt

Mirrored the reduction seen in total debt, emphasizing consistent deleveraging.

Adjusted Total Capital

Increased marginally, hinting at possible asset growth or revaluation after adjustments.

Adjusted Debt to Capital Ratio

Showed the most pronounced improvement, decreasing steadily and indicating improved leverage and financial stability.

The analysis of the annual financial data reveals several notable trends in the company’s financial position from 2011 to 2015. Total assets exhibited a relatively stable pattern, with minor fluctuations around the 48,000 to 49,000 million US dollar range. This stability suggests a consistent asset base without significant expansion or contraction during the period under review.

In contrast, total shareholders’ equity, as reported, demonstrated a fluctuating but overall increasing trend. After a decline from 7,530 million US dollars in 2011 to 6,943 million in 2013, equity rebounded to 8,995 million by the end of 2015. This rebound indicates a recovery and strengthening of the company’s reported net worth over the latter half of the period.

The reported financial leverage ratio showed a rising trend from 6.41 in 2011 to a peak of 6.95 in 2013, followed by a marked decline to 5.48 in 2015. This pattern suggests that the company initially increased its use of debt or liabilities relative to equity before undertaking deleveraging efforts to improve its financial structure in subsequent years.

When considering adjusted values, adjusted total assets mirrored the trend of total assets closely, maintaining a stable range just above 48,000 million US dollars, with a slight increase toward 50,052 million by 2015. Adjusted total equity, however, steadily increased throughout the period, rising from 17,732 million in 2011 to 22,159 million in 2015, indicating an improving capital base when accounting for adjustments that may better reflect the company’s economic position.

The adjusted financial leverage ratio demonstrated a steady decrease from 2.75 in 2011 to 2.26 in 2015. This consistent decline signifies an ongoing reduction in leverage and potentially enhanced financial stability when considering adjusted measures.

Summary of Key Trends:

Total assets remained largely constant, indicating asset base stability.

Reported shareholders’ equity initially decreased then improved significantly by 2015.

Reported financial leverage increased until 2013, then declined notably, suggesting deleveraging post-2013.

Adjusted equity showed a continuous increase, reflecting strengthening adjusted net worth.

Adjusted financial leverage consistently decreased, indicating improved financial health with adjustments.

Revenue Trends

The revenue demonstrated consistent growth over the five-year period, rising from $19,675 million in 2011 to $23,697 million in 2015. The year-over-year increases were steady, reflecting an expanding top line without any signs of decline or stagnation.

Net Income Attributable to Shareholders

Net income attributable to shareholders rose sharply from $1,665 million in 2011 to a peak of $2,155 million in 2012, followed by a decline in 2013 to $1,954 million. It then saw a modest recovery in 2014 to $2,031 million before decreasing again in 2015 to $1,844 million. This pattern suggests fluctuations in profitability despite the steady revenue growth.

Reported Net Profit Margin

The reported net profit margin increased from 8.46% in 2011 to 10.08% in 2012, marking the highest margin during the period. It then declined steadily, reaching 7.78% in 2015. This decline indicates that profitability relative to revenue was pressured in the latter years, despite increasing revenues.

Adjusted Net Income

Adjusted net income followed an upward trajectory from $2,042 million in 2011 to a peak of $3,057 million in 2013. However, it subsequently decreased to $2,426 million in 2014 and slightly further to $2,362 million in 2015. This trend mirrors the pattern seen in reported net income but at generally higher levels, reflecting adjustments for non-recurring or non-cash items.

Adjusted Revenue

Adjusted revenue closely tracked reported revenue, increasing from $19,681 million in 2011 to $23,723 million in 2015. The growth pattern remained consistent and steady throughout the period.

Adjusted Net Profit Margin

The adjusted net profit margin improved notably from 10.38% in 2011 to a peak of 13.82% in 2013. After this peak, it declined to 10.63% in 2014 and further to 9.96% in 2015. Despite a decrease after 2013, the margin remained above the 2011 level, indicating a relatively favorable adjusted profitability performance overall.

Overall Insights

The data indicates a strong revenue growth trajectory throughout the analyzed period. Profitability, as measured by both reported and adjusted net income and profit margins, peaked in 2012-2013 and then declined in the subsequent years. This suggests increasing pressures on profit margins, which may stem from rising costs, operational challenges, or other profitability constraints. The difference between reported and adjusted figures implies the presence of significant adjustments impacting net income, particularly around 2013.

The financial data presents several notable trends for the company over the five-year period ending December 31, 2015.

Net Income Attributable to TWC Shareholders

This metric increased from 2011 to 2012, rising from 1,665 million US dollars to 2,155 million US dollars. Subsequently, it declined somewhat in 2013 to 1,954 million US dollars, then experienced a modest recovery in 2014 to 2,031 million US dollars, followed by a further decrease to 1,844 million US dollars in 2015. Overall, net income shows a peak in 2012, with fluctuations thereafter and a general downward trend after 2012.

Total TWC Shareholders’ Equity

Shareholders' equity decreased gradually from 7,530 million US dollars in 2011 to 6,943 million US dollars in 2013. After this period of decline, it reversed direction, increasing to 8,013 million US dollars in 2014 and further to 8,995 million US dollars in 2015. This signals a recovery in the company’s equity base starting in 2014, reaching its highest point in the period under review by 2015.

Reported Return on Equity (ROE)

Reported ROE showed a strong performance in 2011 at 22.11%, rising significantly to 29.61% in 2012. After 2012, it experienced a downward trajectory for the remaining years, declining to 28.14% in 2013, 25.35% in 2014, and further to 20.5% in 2015. Despite this decline, ROE remained relatively elevated but suggests diminishing profitability relative to shareholder equity after 2012.

Adjusted Net Income

Adjusted net income followed an increasing trend from 2,042 million US dollars in 2011 to 3,057 million US dollars in 2013. However, it then decreased significantly to 2,426 million US dollars in 2014 and slightly further to 2,362 million US dollars in 2015. This pattern parallels the trend in reported net income but demonstrates consistently higher values, indicating adjustments made for possibly non-recurring or non-operational items.

Adjusted Total Equity

Adjusted total equity rose steadily for each year, climbing from 17,732 million US dollars in 2011 to 22,159 million US dollars in 2015. The consistent increase suggests growth in the adjusted equity base, which may incorporate additional factors beyond the reported shareholders' equity, indicating strengthening financial position under adjusted accounting metrics.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE increased from 11.52% in 2011 to 16.07% in 2013, followed by a drop to 11.76% in 2014 and a slight further decline to 10.66% in 2015. This decline in adjusted ROE after 2013 aligns with the reduction in adjusted net income and points to decreased profitability efficiency relative to adjusted equity, mirroring the trend observed in reported ROE but at a lower level overall.

In summary, the company experienced peak profitability and returns on equity around 2012 and 2013, followed by a general decline through 2015. While the reported shareholders’ equity initially decreased before improving in the last two years, the adjusted equity consistently increased, revealing a stronger capital base under adjusted accounting measures. Decreases in both reported and adjusted ROE in later years indicate challenges in maintaining high returns on the growing equity base. These patterns highlight a period of initial earnings growth and strong returns, followed by a phase of moderated profitability and efficiency.

Net Income Attributable to TWC Shareholders

The net income exhibited an overall upward trend from 2011 through 2014, increasing from $1,665 million to a peak of $2,155 million in 2012, followed by a slight decline to $1,954 million in 2013 and a moderate recovery to $2,031 million in 2014. However, in 2015, net income declined to $1,844 million, indicating some volatility and a downward adjustment after previous gains.

Total Assets

Total assets showed relative stability over the five-year period, fluctuating narrowly around the range of $48,000 million to $49,800 million. This indicates that the company's asset base remained largely consistent without significant expansion or contraction.

Reported Return on Assets (ROA)

The reported ROA experienced an initial increase from 3.45% in 2011 to 4.33% in 2012, signaling improved efficiency in asset utilization. A slight decrease occurred in 2013 (4.05%), followed by a modest rebound in 2014 (4.19%), before declining again in 2015 to 3.74%. Overall, the ROA demonstrated moderate fluctuations without a sustained upward or downward trajectory.

Adjusted Net Income

Adjusted net income revealed a more pronounced growth trend, rising steadily from $2,042 million in 2011 to a peak of $3,057 million in 2013. Subsequently, a decline to $2,426 million in 2014 and a slight further decrease to $2,362 million in 2015 were observed. These adjustments suggest that while operational or non-recurring factors positively influenced net income until 2013, such effects diminished in later years.

Adjusted Total Assets

Adjusted total assets showed a pattern consistent with reported total assets, maintaining a stable range from approximately $48,700 million in 2011 to $50,052 million in 2015. This stability indicates no significant changes in asset valuation after adjustments.

Adjusted Return on Assets (ROA)

Adjusted ROA exhibited a significant improvement early in the period, climbing from 4.19% in 2011 to a notable high of 6.27% in 2013, reflecting enhanced operational profitability relative to asset base when adjustments are considered. Following this peak, adjusted ROA decreased to 4.94% in 2014 and further to 4.72% in 2015, indicating some reduction in efficiency or profitability adjusted for specific items.

Overall Analysis

The financial data reveals that the company experienced growth in profitability, particularly evident in adjusted measures, up until 2013. Post-2013, profitability indicators, including both reported and adjusted net income and ROA metrics, experienced declines, suggesting challenges in sustaining earlier performance levels. Total assets remained largely stable, indicating no major asset acquisitions or disposals. The pattern suggests that while operational performance improved in the earlier years, maintaining that momentum became difficult in later periods, warranting further analysis into underlying causes such as market conditions, operational changes, or one-time events.