Time Warner Cable Inc. (NYSE:TWC)

Debt to Equity Ratio

The debt to equity ratio demonstrated a general upward trend from the first quarter of 2011 through mid-2013, increasing from 2.67 to a peak near 3.93. Starting in the third quarter of 2013, the ratio began a gradual decline, falling to 2.4 by the first quarter of 2016. This pattern suggests a period of increasing reliance on debt relative to equity up to mid-2013, followed by a strategic reduction in financial leverage or an increase in equity thereafter.

Debt to Capital Ratio

This ratio remained relatively stable throughout the observed period, fluctuating narrowly around the 0.73 to 0.80 range. The highest levels were recorded between 2011 and early 2013, consistently near or slightly above 0.78, after which there was a subtle decreasing tendency reaching 0.71 by early 2016. The minimal variation indicates a consistent capital structure with only slight adjustments to the proportion of debt in total capital.

Debt to Assets Ratio

The debt to assets ratio mirrored the trend of the debt to capital ratio, initially rising from 0.51 in early 2011 to about 0.55 by late 2011. It then stabilized around 0.53 to 0.54 during 2012 and early 2013 before progressively declining to 0.45 by the first quarter of 2016. This decline suggests a moderate reduction in the overall leverage relative to the asset base in the later years, indicating improved asset backing or a reduction of debt.

Financial Leverage Ratio

Financial leverage showed significant variation during the period, increasing consistently from 5.23 in the first quarter of 2011 to a peak of approximately 7.34 in mid-2013. Following this peak, a steady decrease is observed, with financial leverage falling to 5.32 by the end of the dataset in early 2016. The initial increase indicates a growing use of debt financing relative to equity, followed by a deliberate effort to deleverage or strengthen equity financing over the subsequent years.

Overall Observations

Over the examined period, the company exhibited a clear cycle in its capital structure management. The first phase, covering 2011 to mid-2013, was characterized by increased leverage and higher ratios indicating greater debt relative to equity, capital, and assets. In the second phase, from mid-2013 onward, a consistent shift towards lower leverage is visible across all ratios. This pattern suggests a strategic intent to moderate financial risk and improve the balance sheet strength through deleveraging or enhanced equity financing.

The financial data over the analyzed periods indicate several notable trends regarding the company’s debt, equity, and leverage ratios.

Total debt

The total debt exhibited an overall declining trend after peaking around late 2011 and early 2012. Initially, the debt increased from 23,077 million USD at the end of March 2011 to a high of 27,236 million USD by June 2012. Subsequently, there was a gradual reduction in total debt over the following years, declining to 22,492 million USD by the end of the first quarter of 2016. This reduction suggests active debt management or repayments during this timeframe.

Total shareholders’ equity

Shareholders’ equity showed a generally positive and increasing trend throughout the periods. Starting at 8,632 million USD in March 2011, equity declined somewhat until the end of 2012, reaching a low point of 6,662 million USD in September 2013. From that point forward, equity steadily increased, reaching 9,357 million USD by March 2016. This pattern indicates strengthening in the company’s net asset base during the latter part of the period under review.

Debt to equity ratio

The debt to equity ratio increased significantly from 2.67 in March 2011 to a peak of approximately 3.93 in June 2013, reflecting a higher leverage position likely due to increased debt relative to equity declines in the earlier periods. Following this peak, the ratio demonstrated a consistent downward trend, falling to 2.4 by March 2016. This sharper decrease is consistent with reduced total debt combined with growing equity, signaling lower financial risk and improved balance sheet strength over time.

In summary, the company initially experienced a period of increasing leverage and debt levels coupled with declining equity until around mid-2013. Afterward, the financial condition improved steadily with reduced debt, increased equity, and a correspondingly lower debt to equity ratio, indicating enhanced financial stability and lower relative risk by early 2016.

Total Debt

The total debt showed a gradual upward trend from March 31, 2011, reaching a peak around June 30, 2012, with $27,236 million. After this peak, total debt began a steady decline, dropping to approximately $22,492 million by March 31, 2016. This decline indicates a consistent reduction in debt levels over the last several quarters observed.

Total Capital

Total capital exhibited a similar pattern initially, increasing from $31,709 million in March 2011 to a peak near mid-2012 at around $34,672 million. Following that peak, total capital declined gradually, stabilizing around $31,000 to $32,000 million in the later periods. By March 31, 2016, total capital was reported as $31,849 million, which is slightly above its lowest point within the dataset.

Debt to Capital Ratio

The debt to capital ratio started at 0.73 in March 2011 and rose steadily to reach the highest values between 0.78 and 0.80 from mid-2011 through early 2014. From mid-2014 onwards, the ratio demonstrated a consistent downward trend. By the end of the period analyzed, March 2016, the ratio had decreased to approximately 0.71, indicative of a reduced proportion of debt relative to total capital.

Overall Insights

Over the period analyzed, there is clear evidence of prudent financial management efforts to reduce leverage. After peaking around mid-2012, both total debt and total capital decreased gradually. The declining debt to capital ratio from 2014 onward suggests a trend toward stronger capital structure and lower financial risk. The data reflects a shift towards improved balance sheet strength through debt reduction while maintaining relatively stable total capital levels.

The quarterly financial data reveals several notable trends in the company’s capital structure and asset base over the period from March 2011 through March 2016.

Total Debt

Total debt exhibited a gradual increase from $23,077 million in March 2011, peaking around the latter half of 2011 and mid-2012 near $27,236 million. After this peak, a consistent downward trajectory is observed, with total debt declining steadily each quarter to approximately $22,492 million by March 2016. This trend suggests active debt management and possible deleveraging efforts in the latter years.

Total Assets

Total assets grew moderately from $45,139 million in March 2011, reaching a high of about $50,085 million by September 2012. Following this peak, total assets fluctuated slightly but generally trended lower through 2013 and 2014, settling near $48,330 million by March 2015. However, from mid-2015 onwards, a modest recovery is noted, culminating in approximately $49,751 million by March 2016. Overall, total assets demonstrated relative stability with mild fluctuations throughout the period.

Debt to Assets Ratio

The debt to assets ratio remained fairly stable in the early periods, starting at 0.51 in March 2011 and increasing slightly to reach about 0.55 through 2011 into early 2012. From mid-2012 onward, a clear downward trend emerges, with the ratio declining incrementally each quarter. By March 2016, the ratio had decreased to 0.45, indicating an improving leverage position and potentially a reduced financial risk associated with debt levels relative to assets.

In summary, while total assets maintained a fairly steady level with some volatility, total debt was reduced consistently in the later years, leading to an improved debt to assets ratio. This pattern indicates a strengthening balance sheet with slower growth or divestment in debt obligations compared to asset holdings, reflecting a strategic shift towards lower leverage over the observed timeframe.

The analysis of the quarterly financial data reveals several notable trends and patterns concerning total assets, shareholders’ equity, and financial leverage over the observed periods.

Total Assets

Total assets showed a gradual upward trend from the beginning of the period, increasing steadily from approximately 45.1 billion US dollars at the end of March 2011 to nearly 49.8 billion US dollars by the first quarter of 2016. There were minor fluctuations, such as a slight decline around the end of 2012 and again between 2013 and 2014, but overall, the asset base expanded moderately over the five-year span.

Total Shareholders’ Equity

In contrast, shareholders’ equity exhibited a declining trend during the initial half of the timeframe, dropping from around 8.6 billion US dollars in early 2011 to a low near 6.6 billion by late 2013. However, starting from late 2013, equity began a consistent recovery, increasing steadily to approximately 9.4 billion US dollars by March 2016. This U-shaped trend indicates a period of equity erosion followed by strengthening capitalization towards the end of the timeframe.

Financial Leverage

Financial leverage, expressed as a ratio, increased notably during the earlier periods, rising from just above 5.2 to a peak of about 7.3 by mid-2013. Following this peak, the leverage ratio began a steady decline, falling to around 5.3 by the end of the examined period in March 2016. This inverse movement relative to shareholders’ equity suggests that the company's reliance on debt intensified initially but was subsequently reduced as equity strengthened and assets stabilized.

Overall, the data indicates an initial phase characterized by cautious asset growth accompanied by declining equity and rising leverage, possibly reflecting increased borrowing or financial restructuring. The latter phase shows a strengthening of the equity position and a corresponding reduction in financial leverage, signaling improved financial stability and a potential focus on deleveraging strategies. The relatively stable asset base throughout suggests controlled growth without significant volatility.