Time Warner Cable (Time Warner Cable) Interest Coverage : 3.26 (As of Mar. 2016)

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What is Time Warner Cable Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Time Warner Cable's Operating Income for the three months ended in Mar. 2016 was $1,145 Mil. Time Warner Cable's Interest Expense for the three months ended in Mar. 2016 was $-351 Mil. Time Warner Cable's interest coverage for the quarter that ended in Mar. 2016 was 3.26. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Time Warner Cable's Interest Coverage or its related term are showing as below:

TWC's Interest Coverage is not ranked ^*
in the Media - Diversified industry.
Industry Median: 11.96
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Time Warner Cable Interest Coverage Historical Data

The historical data trend for Time Warner Cable's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Time Warner Cable Interest Coverage Chart

Time Warner Cable Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

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2.67

2.75

2.95

3.26

3.02

Time Warner Cable Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Interest Coverage	Get a 7-Day Free Trial															3.11	2.94	2.85	3.19	3.26

Competitive Comparison of Time Warner Cable's Interest Coverage

For the Broadcasting subindustry, Time Warner Cable's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Time Warner Cable's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Time Warner Cable's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Time Warner Cable's Interest Coverage falls into.

Time Warner Cable Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Time Warner Cable's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Time Warner Cable's Interest Expense was $-1,402 Mil. Its Operating Income was $4,239 Mil. And its Long-Term Debt & Capital Lease Obligation was $22,497 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	4239	/	-1402
	=	3.02

Time Warner Cable's Interest Coverage for the quarter that ended in Mar. 2016 is calculated as

Here, for the three months ended in Mar. 2016, Time Warner Cable's Interest Expense was $-351 Mil. Its Operating Income was $1,145 Mil. And its Long-Term Debt & Capital Lease Obligation was $22,487 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2016 )	/	Interest Expense (Q: Mar. 2016 )
	=	-1	*	1145	/	-351
	=	3.26

The higher the ratio, the stronger the company's Financial Strength is.

Time Warner Cable (NYSE:TWC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Time Warner Cable Interest Coverage Related Terms

Thank you for viewing the detailed overview of Time Warner Cable's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Time Warner Cable (Time Warner Cable) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Time Warner Cable Inc (NYSE:TWC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.timewarnercable.com

Time Warner Cable Inc was incorporated as a Delaware corporation on March 21, 2003. The Company provides video, high-speed data and voice services in five geographic areas: New York State, the Carolinas, the Midwest, Southern California and Texas. The Company has three reportable segments: Residential Services, Business Services and Other Operations. Its video service provides over 300 channels and 20,000 video-on-demand choices. It offers tiers and packages of video programming and music services. Its residential video subscribers also may subscribe to premium network programming, such as Cinemax, EPIX, HBO, Showtime and Starz. The Company offers high-speed data service tiers, each with attributes tailored to meet the different needs its subscribers providing from up to 2 to up to 300 mbps downstream levels. Its high-speed data service also provides communication tools and personalized services, including email, PC security, parental controls and online radio, at no additional charge. The Company offers IntelligentHome, a security and home management service, in substantially all of its operating areas. It offers networking, voice, video, hosting and cloud computing services. The Company offers business customers a data services, including Internet access, network services and wholesale transport services. It also offers video programming tiers, music services and voice services including multi-line phone service and trunk service. The Company's Other Operations segment consists of Time Warner Cable Media, the advertising sales arm, its local sports, news and lifestyle channels and SportsNet LA. The Company delivers video, data and voice services over a network that includes a nationwide fiber backbone, fiber-rich regional and metro rings, and last mile connections to customers' homes and businesses. It contracts with third parties for goods and services related to the delivery of its video, high-speed data and voice services. The Company's residential video, high-speed data and voice services face competition from AT&T, CenturyLink, Inc., Cincinnati Bell Inc, Fairpoint Communications Inc, Frontier Communications Corp, Hawaiian Telcom Holdco Inc, Verizon and Windstream Corp. Its residential video and high-speed data services compete with Google's video and broadband services.

Executives

Donna James	director	ONE MIRANOVA PLACE, SUITE 1040, COLUMBUS OH 43215
John E Sununu	director	C/O BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752
Copeland James E Jr	director	2500 WINDY RIDGE PARKWAY, ATLANTA GA 30339
Robert D Marcus	director, officer: Chairman & CEO	C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023
Nicholas Nicholas J Jr	director	C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 16TH FLOOR, NEW YORK NY 10023
Thomas H Castro	director	C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 16TH FLOOR, NEW YORK NY 10023
Osbourn William F Jr	officer: SVP, Chief Acct Off & Co-CFO	C/O TIME WARNER CABLE, 60 COLUMBUS CIRCLE, 16TH FLOOR, NEW YORK NY 10023
Matthew Siegel	officer: SVP & Treasurer and Co-CFO	C/O TIME WARNER CABLE, 60 COLUMBUS CIRCLE, NEW YORK NY 10023
Edward D Shirley	director	SYSCO CORPORATION, 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Carole Black	director	C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 16TH FLOOR, NEW YORK NY 10023
David C Chang	director	C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 16TH FLOOR, NEW YORK NY 10023
Glenn Britt	director	C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023
Melinda Witmer	officer: EVP, Chf Video & Content Offcr	C/O TEGNA INC., 7950 JONES BRANCH DRIVE, MCLEAN VA 22107
Joan H Gillman	officer: EVP & COO, Media Services	C/O AIRGAIN, INC., 3611 VALLEY CENTRE DRIVE, SUITE 150, SAN DIEGO CA 92130
Irene M Esteves	officer: EVP & CFO	C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023