The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Time Warner's quick ratio for the quarter that ended in Mar. 2018 was 1.01.
Time Warner has a quick ratio of 1.01. It generally indicates good short-term financial strength.
The historical rank and industry rank for Time Warner's Quick Ratio or its related term are showing as below:
TWX's Quick Ratio is not ranked *
in the Media - Diversified industry.
Industry Median: 1.45 * Ranked among companies with meaningful Quick Ratio only.
Time Warner Quick Ratio Historical Data
The historical data trend for Time Warner's Quick Ratio 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.
Competitive Comparison of Time Warner's Quick Ratio
For the Broadcasting subindustry, Time Warner's Quick Ratio, along with its competitors' market caps and Quick Ratio 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's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Time Warner's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Time Warner's Quick Ratio falls into.
Time Warner Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Time Warner's Quick Ratio for the fiscal year that ended in Dec. 2017 is calculated as
* 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.
Time Warner (NYSE:TWX) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Time Warner Quick Ratio Related Terms
Thank you for viewing the detailed overview of Time Warner's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Time Warner is a pure-play entertainment company that owns several television networks, including HBO, CNN, TNT, and the CW. The filmed entertainment segment creates and distributes movies and television programming for internal and external distribution outlets. Warner Bros. and New Line Cinema combine to form the largest filmmaker in the world. The company owns a deep and valuable content library that includes popular movie franchises such as DC Comics and Harry Potter and television programs such as Friends and The Big Bang Theory.
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