Charter Communications Inc. (NASDAQ:CHTR)

Cable distribution systems

The value of cable distribution systems has shown a consistent upward trend from 33,693 million USD in 2020 to 49,211 million USD in 2024. This represents substantial growth over the five-year period, with an especially marked increase between 2022 and 2024, indicating ongoing investment or expansion in this asset category.

Customer premise equipment and installations

Values for customer premise equipment and installations were relatively stable between 2020 and 2022, fluctuating narrowly between 17,756 million USD and 18,196 million USD. However, a decline is observed in 2023 to 17,043 million USD, followed by a slight recovery in 2024 to 17,270 million USD. This suggests possible reduced investment or asset disposals during the middle of the period, with modest stabilization afterward.

Vehicles and equipment

This category has experienced steady, moderate growth from 1,932 million USD in 2020 to 2,251 million USD in 2024. The incremental increases each year reflect ongoing, incremental additions or replacements within vehicles and equipment.

Buildings and improvements

Values for buildings and improvements have increased gradually but marginally, moving from 5,396 million USD in 2020 to 5,966 million USD in 2024. The slow pace of growth indicates limited expansion or capitalization in this asset class during the period, potentially pointing to stable property holdings with minor enhancements.

Furniture, fixtures and equipment

This asset category demonstrated fluctuations but overall growth from 7,219 million USD in 2020 to 7,624 million USD in 2024. A slight dip occurred in 2021 to 7,015 million USD, but values recovered and steadily increased through 2024, indicating some replacement or refurbishment activity.

Property, plant and equipment, gross

The aggregate gross property, plant, and equipment increased each year, from 65,996 million USD in 2020 to 82,322 million USD in 2024. The steady year-over-year growth suggests consistent capital expenditures and asset additions across the various categories over the five-year period.

Accumulated depreciation

Accumulated depreciation steadily increased in absolute value, moving from -31,639 million USD in 2020 to -39,409 million USD in 2024. This reflects ongoing depreciation charges applied to the asset base, consistent with the aging and usage of property, plant, and equipment over time.

Property, plant and equipment, net of accumulated depreciation

The net property, plant, and equipment balance remained relatively flat between 2020 and 2021, then showed progressive growth from 34,357 million USD in 2020 to 42,913 million USD in 2024. This indicates that asset additions and capital investments have outpaced depreciation charges in recent years, enhancing the company's net asset base.

Analysis of the annual property, plant, and equipment data reveals nuanced changes in the age and estimated useful life of these assets over the observed periods.

Average Age Ratio

The average age ratio shows a fluctuating trend, initially increasing from 47.94% in 2020 to a peak of 50.09% in 2022. This was followed by a decrease to 48.86% in 2023 and further down to 47.87% by the end of 2024. This suggests a period of aging assets up to 2022, with subsequent asset renewal or addition activities that reduced the relative age thereafter.

Estimated Total Useful Life

The estimated total useful life of the assets has steadily increased throughout the timeline, moving from 8 years in 2020 up to 11 years by 2024. This could indicate either an extension in the lifespan expectations of existing assets due to improved maintenance, or the acquisition of newer assets with longer useful lives.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets remains relatively stable, with 4 years recorded from 2020 to 2021, then increasing to 5 years from 2022 through 2024. This stability indicates a consistent approach in asset replacement or acquisition intervals over the period.

Estimated Remaining Life

The estimated remaining life of assets maintained an upward trajectory, holding at 4 years in 2020 and 2021, then increasing to 5 years for 2022 and 2023, and further to 6 years in 2024. This suggests an improving outlook regarding asset longevity, potentially reflecting investment in newer or more durable equipment.

Overall, the data reflects a maturation in asset management, characterized by a strategic balance of aging equipment and investments in extending the useful life of the asset base. The reduction in the average age ratio after 2022 points to effective asset renewal practices, while the lengthening of total useful life and remaining life estimates suggests a positive adjustment in asset durability or replacement strategy.

Accumulated Depreciation

The accumulated depreciation of property, plant, and equipment has shown a consistent upward trend over the five-year period. Starting at $31,639 million in 2020, it increased steadily each year, reaching $39,409 million by the end of 2024. This suggests significant ongoing depreciation expenses, reflecting the aging and usage of assets.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment has also exhibited a continuous increase from $65,996 million in 2020 to $82,322 million in 2024. This indicates continued investments in new assets or capital expenditures that have expanded the asset base over the years.

Average Age Ratio

The average age ratio percentage, which indicates the age composition of the asset base relative to its depreciation, fluctuated slightly during the period. It increased from 47.94% in 2020 to a peak of 50.09% in 2022, followed by a decline to 47.87% in 2024. This pattern suggests that assets reached a slightly older average age by 2022 before newer assets or replacements began to lower the average age towards 2024.

Overall Insights

The data illustrates a significant increase both in the gross value and accumulated depreciation of property, plant, and equipment, consistent with ongoing investment and asset use. The relatively stable average age ratio around 48-50% implies a balanced asset portfolio in terms of age, with no drastic shifts in asset turnover or replacement policies. The company's capital asset management appears to maintain steady growth while managing asset aging effectively.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment shows a consistent upward trend over the five-year period. Starting from $65,996 million at the end of 2020, it increased each year, reaching $82,322 million by the end of 2024. This indicates ongoing investment and expansion in tangible assets.

Depreciation Expense

Depreciation expense demonstrates a relatively stable pattern, with slight fluctuations. It decreased marginally from $7,800 million in 2020 to $7,700 million in 2021 and further to $7,600 million in 2022 and 2023. In 2024, it returned to $7,800 million. This suggests that while the asset base is growing, the annual depreciation charge remains fairly constant, possibly influenced by the estimated increase in useful life.

Estimated Total Useful Life

The estimated total useful life of the property, plant, and equipment has gradually extended over the period. Starting at 8 years in 2020, it increased to 9 years in 2021, then stabilized at 10 years for 2022 and 2023, and finally extended to 11 years in 2024. This trend may indicate improvements in asset durability or changes in depreciation policies, contributing to the stable depreciation expense despite asset growth.

Accumulated Depreciation

The accumulated depreciation amount shows a consistent upward trend over the analyzed period, increasing each year from $31,639 million at the end of 2020 to $39,409 million by the end of 2024. This indicates continuous aging or usage of the property, plant, and equipment assets, reflecting the ongoing allocation of cost over their useful lives.

Depreciation Expense

Depreciation expense remains relatively stable throughout the period, fluctuating slightly between $7,600 million and $7,800 million annually. There is a slight dip noted in 2021 to 2023 where the expense settles at $7,600 million, but it returns to $7,800 million in 2024. This stability suggests consistent depreciation policies and asset usage patterns over these years.

Time Elapsed Since Purchase

The average time elapsed since purchase moves from 4 years in 2020 and 2021 to 5 years for the years 2022 through 2024. This indicates that the equipment on the books is aging, and there may be less acquisition of new assets relative to the aging of the existing asset base during this timeframe.

Overall Analysis

Overall, the data demonstrates a clear pattern of increasing accumulated depreciation, driven by steady depreciation expense and an aging asset base. The lack of significant variation in depreciation expenses combined with a modest increase in the average asset age may reflect a stable asset replacement or acquisition strategy with minimal changes in the composition or scale of property, plant, and equipment holdings over these years.

Property, plant and equipment, net of accumulated depreciation

The net value of property, plant, and equipment shows an overall increasing trend from 2020 through 2024. Beginning at 34,357 million USD in 2020, the asset value remained relatively stable into 2021 with a slight decrease to 34,310 million USD. From 2021 onwards, there is a noticeable upward trend, rising to 36,039 million USD in 2022, then to 39,520 million USD in 2023, and further to 42,913 million USD by the end of 2024. This suggests ongoing investment or capital expenditure exceeding depreciation and disposals during this period.

Depreciation expense

The depreciation expense demonstrates relative stability throughout the five-year period. It started at 7,800 million USD in 2020, experienced a minor decline to 7,700 million USD in 2021, and then decreased slightly again to 7,600 million USD in both 2022 and 2023. The expense rose back to 7,800 million USD by the end of 2024. The limited fluctuation suggests consistent depreciation policies and asset base aging patterns.

Estimated remaining life

The estimated remaining useful life of the assets increased over the examined period. It remained constant at 4 years for 2020 and 2021, then increased to 5 years in 2022 and 2023, and further to 6 years by 2024. This upward adjustment may reflect improvements in asset longevity, changes in asset mix towards longer-lived assets, or reassessments extending the useful life estimates.