Comparison of Comcast and Twc

Topics: Time Warner Cable, Generally Accepted Accounting Principles, Financial ratios Pages: 7 (1583 words) Published: June 19, 2013

Time Warner vs. Comcast Cable
Group Fact Sheet

* Cable, Internet, and phone provider. They also make revenues in other areas such as theme parks, film, advertising, and home security. * Residential and commercial customers in 40 different states. * In the past five years Comcast has acquired several holdings, other cable networks, and related businesses.

* Fortune 500 rank: 2009: 68
2010: 59
2011: 66
2012: 49
2013: 46

* Position in the telecommunications industry: 4

Time Warner Cable
* Cable, Internet, and phone provider. They also make revenues in other areas such as advertising, film, and home security. * Operates in 28 different states.
* In March of 2009 Time Warner Cable split off from Time Warner.

* Fortune 500 rank: 2009: New independent entity did not have high enough revenue to rank.
2010: 131
2011: 137
2012: 142
2013: 134

* Position in the telecommunications industry: 6


* Comcast consistently increases revenues at a higher percentage than Time Warner cable. * Comcast has a huge percentage change from 2011 to 2012 due to the Olympic coverage that was on NBC a Comcast affiliate. * Time Warner Cable is increasing revenues but at a slower rate than Comcast.


Time Warner Cable


* Time Warner Cable and Comcast’s change of assets are not significant, with the exception of Comcast from 2011 to 2012. This increase is due to the acquisition of NBC that began in 2011.

Debt and Equity Levels


* Comcast has a big increase in liabilities from 2011 to 2012. This is likely due to the acquisition of NBC that started in 2011.

Time Warner Cable

* Time Warner Cable had extreme drop in equity from 2009 to 2010. This is due to a 1 for 3 reverse stock split in 2009.

Debt Coverage Ratio

* Time Warner Cable’s debt coverage ratio is on a negative trend. The amount of debt has increased compared to the cash from operations to pay off the debt. * Comcast’s debt coverage ratio has a positive trend. Their cash from operations has been increasing. This gives them the ability to pay off their debt if they choose to. * Both Comcast and Time Warner Cable have increasing total debt figures. However, Comcast has shown a better ability to manage their total debt because their cash from operations has also increased along with the rising debt.

Long Term Debt to Shareholders Equity

* Time Warner Cable’s long-term debt is on an increasing trend. However, their shareholders equity has decreased indicating that they may have lost financing and equity or repurchase of stock. * Comcast’s long-term debt remains steady through 2009-2011. While in 2012 there is a large increase in long-term debt. During 2012 there was also an increase in shareholders’ equity, which leads to a bigger increase in shareholders’ equity in 2013. * Comcast’s long-term debt ratio in recent years has shown that their solvency has gotten to an acceptable level of 76%. More investors have invested capital in the company. This gives Comcast a better ability to manage debt.


Gross Profit:

* Time Warner Cable has been increasing their gross profit slowly from 9,055 in 2009 to 11,444 in 2013 (in millions). * Comcast also had an increasing trend in their gross profit from 26,336 in 2009 and made even larger gains in recent years creating a profit of 42,641 in 2013 (in millions). * Comcast almost doubled their gross profit in five years, while Time Warner Cable made minimal gains in the same five-year span. * Comcast increased their gross profit due to the large amount of money they made from the Olympics airing on their affiliate NBC.

Net Profit:

* Time Warner Cable is increasing their net profit.
* Comcast Cable also has an increasing trend net profit. Comcast has a higher overall...
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