Charter Communications Inc. (NASDAQ:CHTR)

The data reveals several notable trends in the intangible asset categories over the five-year period from 2019 to 2023.

Franchises

The value of franchises showed a very slight upward trend, increasing incrementally from 67,322 million USD in 2019 to 67,396 million USD in 2023. This indicates a relatively stable franchise base with marginal growth over the period.

Goodwill

Goodwill remained almost constant from 2019 through 2022, fluctuating marginally around 29,554 to 29,563 million USD, with a small increase to 29,668 million USD in 2023. This suggests limited impairment or acquisition activities affecting goodwill.

Wireless Spectrum Licenses

The value appeared first in 2020 at 464 million USD and remained unchanged through 2023, which reflects acquisition or recognition of wireless spectrum assets starting in 2020 and stability thereafter.

Trademarks

The trademark value was steady at 159 million USD throughout the entire period, indicating no revaluation or significant changes in this intangible asset class.

Indefinite-lived Intangible Assets

These assets slightly increased from 97,035 million USD in 2019 to 97,687 million USD in 2023, suggesting minor additions or revaluations but overall stability in indefinite-lived assets.

Customer Relationships

Customer relationships remained quite stable, with a slight increase from 18,230 million USD in 2019 to 18,268 million USD in 2023, implying minimal change in customer-related intangible assets.

Other Intangible Assets

A gradual increase was observed from 405 million USD in 2019 to 450 million USD in 2023, indicating steady additions or capitalizations of other intangibles.

Finite-lived Intangible Assets

The gross carrying amount showed a slow but consistent rise from 18,635 million USD to 18,718 million USD over five years.

Accumulated Amortization

There was a significant increase in accumulated amortization, rising from -10,899 million USD in 2019 to -16,801 million USD in 2023. This increase evidences increasing amortization expenses reflecting the aging of finite-lived intangible assets.

Finite-lived Intangible Assets, Net Carrying Amount

The net carrying amount declined notably from 7,736 million USD in 2019 to 1,917 million USD in 2023, a reduction consistent with the increasing accumulated amortization, indicating acceleration in amortization expense relative to additions or impairments.

Franchises, Goodwill and Other Intangible Assets, Total

This aggregate intangible asset measure showed a downward trend from 104,771 million USD in 2019 to 99,604 million USD in 2023, suggesting a net reduction in total intangible assets, likely driven by amortization and potential impairments exceeding new additions.

The financial data exhibits distinct trends in both reported and goodwill-adjusted figures over the five-year period ending December 31, 2023.

Total Assets

Reported total assets demonstrated a slight overall decline from US$148,188 million in 2019 to US$142,491 million in 2021, followed by a modest recovery to US$147,193 million by 2023. This trend indicates relative stability in asset size with minor fluctuations. Similarly, the adjusted total assets, which exclude goodwill, followed a parallel pattern, decreasing from US$118,634 million in 2019 to US$112,929 million in 2021, then increasing to US$117,525 million by 2023. The adjusted asset values remain consistently lower than the reported values, highlighting the impact of goodwill on the asset base.

Shareholders’ Equity

Reported total Charter shareholders’ equity showed a pronounced downward trend, declining sharply from US$31,445 million in 2019 to US$9,119 million in 2022. A slight recovery was noted in 2023 with equity increasing to US$11,086 million. This significant reduction suggests persistent challenges affecting retained earnings or other components of equity during the period.

The adjusted total shareholders’ equity, which accounts for goodwill reductions, showed a more severe deterioration. Starting from a positive balance of US$1,891 million in 2019, it dropped into negative territory in 2020 at -US$5,749 million and continued declining to -US$20,444 million by 2022. A minor improvement was observed in 2023, with adjusted equity improving slightly to -US$18,582 million. This persistently negative adjusted equity underscores the substantial impact of goodwill impairments or write-downs and suggests potential concerns regarding net asset value from an adjusted perspective.

Overall, the analysis reveals a moderately stable asset base with fluctuations in equity values, particularly when adjusting for goodwill effects. The sharp declines in both reported and adjusted shareholders’ equity point to underlying financial pressures, which are more pronounced when goodwill is excluded, potentially indicating impairments and reduced net worth over the period reviewed.

The analysis of the financial data reveals several notable trends across the key performance metrics over the five-year period.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios show a consistent upward trend from 2019 through 2022, with reported figures increasing from 0.31 to 0.37 and adjusted figures ranging from 0.39 to a peak of 0.47. In 2023, reported turnover stabilizes at 0.37, while adjusted turnover experiences a slight decrease to 0.46. This overall improvement indicates enhanced efficiency in using assets to generate revenue, although the minor decline in adjusted turnover in the latest period suggests a potential plateau or slight reduction in asset utilization efficiency.

Financial Leverage

The reported financial leverage ratio demonstrates a significant upward trajectory from 4.71 in 2019 to a high of 15.85 in 2022, before declining to 13.28 in 2023. This pattern suggests an increasing reliance on debt financing until 2022 followed by a partial deleveraging in the most recent year. Adjusted financial leverage, available only for 2019 at an extraordinarily high level of 62.74, does not provide sufficient data for trend analysis, but the magnitude indicates that goodwill and other adjustments dramatically affect leverage ratios when considered.

Return on Equity (ROE)

Reported ROE shows substantial growth throughout the period, rising steadily from 5.3% in 2019 to a peak of 55.43% in 2022 before retreating to 41.11% in 2023. This indicates increasing profitability and returns generated for shareholders until 2022, with a notable moderation afterward, which could reflect operational challenges, increased costs, or capital structure changes. Adjusted ROE is only reported for 2019 at an extremely high 88.21%, again illustrating the significant influence of adjustments on profitability measurements, but limiting trend insights.

Return on Assets (ROA)

Both reported and adjusted ROA demonstrate an upward trend from 2019 to 2022, with reported ROA increasing from 1.13% to 3.5% and adjusted ROA rising more sharply from 1.41% to 4.4%. In 2023, both measures experience a slight decline, reported ROA falling to 3.1% and adjusted ROA to 3.88%. The improvements indicate growing operational efficiency and asset profitability until 2022, with a small downturn in 2023 that may suggest emerging inefficiencies or external pressures affecting asset returns.

In summary, the data reflect a period of expanding operational effectiveness and increasing leverage contributing to enhanced profitability up to 2022. The partial reversals in leverage, ROE, and ROA in 2023 hint at a possible strategic shift or external factors impacting performance. The sizable differences between reported and adjusted figures underscore the material impact of goodwill and other adjustments on financial metrics, warranting careful consideration in financial analysis.

The analysis of the financial data over the five-year period reveals several noteworthy trends regarding total assets and asset turnover ratios.

Total Assets

The reported total assets exhibit a slight overall decline from US$148,188 million in 2019 to US$147,193 million in 2023, with a noticeable decrease during 2020 and 2021 before a modest recovery in 2022 and 2023. This indicates a relatively stable asset base with minor fluctuations likely influenced by external factors or company-specific events.

The adjusted total assets, which presumably exclude goodwill, follow a similar downward trend from US$118,634 million in 2019 to US$117,525 million in 2023. The decline is consistent through 2020 and 2021, followed by a gradual increase in the subsequent years, suggesting that adjustments for goodwill account for a sizeable and relatively stable portion of total assets.

Total Asset Turnover Ratios

The reported total asset turnover ratio shows a steady increase over the period, rising from 0.31 in 2019 to 0.37 by 2022 and remaining stable into 2023. This improvement suggests enhanced efficiency in utilizing assets to generate revenue or sales over time.

The adjusted total asset turnover ratio is consistently higher than the reported ratio each year, reflecting greater efficiency when goodwill is excluded from the asset base. It increases from 0.39 in 2019 to a peak of 0.47 in 2022, with a slight decrease to 0.46 in 2023, indicating sustained strong performance with marginal variability in asset utilization efficiency.

Overall, the data suggest that while the asset base has experienced minor declines and recoveries, the company’s ability to generate revenues relative to its assets has improved over time, particularly when adjusted for goodwill. The stability in both reported and adjusted total assets along with increasing turnover ratios portray gradual progress in operational efficiency during the observed timeframe.

The analysis of the annual financial data reveals several notable trends in the company's asset base, equity position, and financial leverage over the five-year period evaluated.

Total Assets

Reported total assets exhibited a gradual decline from US$148.2 billion in 2019 to US$142.5 billion in 2021, followed by a slight recovery to US$147.2 billion by the end of 2023. Adjusted total assets, which exclude goodwill, mirrored this pattern with a decrease from US$118.6 billion in 2019 to US$112.9 billion in 2021, then an increase to US$117.5 billion in 2023. Overall, the asset base remained relatively stable with minor fluctuations.

Shareholders’ Equity

Reported total shareholders’ equity showed a marked and consistent downward trend, falling from US$31.4 billion in 2019 to a low of US$9.1 billion in 2022 before a modest increase to US$11.1 billion in 2023. Conversely, adjusted shareholders' equity, which excludes the impact of goodwill, deteriorated into negative territory, starting at US$1.9 billion in 2019 and declining significantly to negative US$18.6 billion by 2023. This persistent negative adjusted equity reflects substantial goodwill impairments or write-downs and indicates a weakening in the net asset value when goodwill is excluded.

Financial Leverage

Reported financial leverage ratios increased sharply from 4.71 in 2019 to a peak of 15.85 in 2022, followed by a reduction to 13.28 in 2023. This trend supports the observation of a declining equity base relative to total assets, signaling higher reliance on debt financing or other liabilities over the period. Notably, adjusted financial leverage was extremely elevated at 62.74 in 2019, with subsequent values not reported. Such a high adjusted leverage ratio reflects the significant impact of the reduced equity base after excluding goodwill and underscores considerable financial risk.

In summary, the data indicate relative stability in total assets alongside a serious erosion of shareholders' equity, particularly when adjusted for goodwill, resulting in elevated financial leverage. This combination suggests an increasing financial risk profile over the period analyzed, driven primarily by declining net equity under adjusted metrics and increased leverage ratios.

The financial data reveals notable trends in both reported and adjusted figures related to shareholders' equity and return on equity (ROE) over the five-year period ending in 2023.

Reported Total Charter Shareholders’ Equity

There is a clear downward trend from 2019 through 2022, with the equity declining from $31,445 million in 2019 to $9,119 million in 2022. However, a recovery appears in 2023, as equity rises to $11,086 million. Despite this increase, the 2023 figure remains significantly lower than the initial 2019 value.

Adjusted Total Charter Shareholders’ Equity

The adjusted equity values demonstrate a consistent negative trajectory across all periods, starting from a positive $1,891 million in 2019, moving sharply into negative territory at -$5,749 million in 2020, and continuing to worsen through 2023, ending at -$18,582 million. This persistent negative adjusted equity suggests significant goodwill adjustments have a material impact on the company’s net position.

Reported Return on Equity (ROE)

Reported ROE shows a strong increasing trend between 2019 and 2022, rising from 5.3% to a peak of 55.43% in 2022, before declining to 41.11% in 2023. The initial low value followed by a steep rise indicates improving profitability relative to reported shareholders’ equity, albeit with some moderation in the most recent year.

Adjusted Return on Equity (ROE)

Adjusted ROE data is only available for 2019, where it stands at an exceptionally high 88.21%. Absence of data in subsequent years prevents a trend analysis, but the initial figure suggests a considerably higher profitability when considering goodwill adjustments in that year.

Overall, the reported equity exhibits a significant decline over the initial four years with partial recovery later, while adjusted equity consistently remains negative and deteriorates further. Despite this, reported returns on equity improve markedly until 2022 before easing somewhat in 2023. The discrepancy between reported and adjusted values underscores substantial intangible asset impacts affecting the company’s financial positioning and profitability metrics.

The analysis of the financial data over the five-year period reveals several notable trends concerning the company's asset base and profitability metrics.

Total Assets

The reported total assets display a generally stable pattern with minor fluctuations. There is a slight decrease from 148,188 million USD in 2019 to 142,491 million USD in 2021, followed by a modest recovery to 147,193 million USD by the end of 2023. The adjusted total assets, which exclude goodwill, follow a similar trajectory but at lower values, declining from 118,634 million USD in 2019 to 112,929 million USD in 2021, then increasing gradually to 117,525 million USD in 2023. This indicates that the underlying asset base, excluding goodwill, also experienced a minor contraction and subsequent recovery.

Return on Assets (ROA)

The reported ROA shows a clear upward trend from 1.13% in 2019 to a peak of 3.5% in 2022, followed by a slight decline to 3.1% in 2023. The adjusted ROA, which presumably reflects profitability excluding the effect of goodwill, demonstrates a similar but more pronounced pattern, improving from 1.41% in 2019 to 4.4% in 2022 before decreasing to 3.88% in 2023. Both sets of ROA figures indicate improving efficiency in asset utilization over the period with a slight weakening in the most recent year.

Insights

The overall data indicate that while the company's asset base has remained relatively consistent with minor fluctuations, profitability as measured by ROA has improved substantially until 2022. The slight decline in ROA in 2023 could suggest emerging challenges or diminishing returns on assets after a period of significant improvement. The adjustments excluding goodwill amplify the trends observed, implying that goodwill has some impact on reported figures but the core asset performance trends remain consistent. This pattern suggests ongoing operational efficiency gains with a potential need to monitor and address factors causing the recent decrease in returns.