Common-Size Income Statement
Charter Communications Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Revenue Composition and Cost Structure
- The total revenues remained constant as a baseline of 100% throughout the periods analyzed. Programming expenses as a percentage of revenues declined steadily from -23.7% in 2020 to -17.52% in 2024, indicating a reduction in relative spending on programming over time. Conversely, other costs of revenue increased from -8.21% to -11.53%, suggesting rising expenses in components outside of programming. Field and technology operations and customer operations, starting from 2022, hovered around -9% and -6% respectively, displaying stability with slight fluctuations.
- Sales and Marketing and Other Expense Trends
- Sales and marketing expenses showed a gradual increment in relative terms, moving from -6.3% to -6.74%. Stock compensation expense, recorded from 2022, increased from -0.87% to a peak of -1.27% in 2023 before a modest decrease to -1.18% in 2024. Other operating costs remained relatively stable, around -8% of revenues, with minor yearly variations.
- Overall Operating Costs and Gross Profitability
- Operating costs and expenses as a percentage of revenues showed a slight decrease from -62.23% in 2020 to -60.21% in 2024, indicating improved cost efficiency. Correspondingly, gross profit margins increased from 37.77% to 39.79%, reflecting enhanced profitability at the gross level, despite fluctuations in individual cost categories.
- Depreciation, Amortization, and Special Charges
- Depreciation and amortization expenses displayed a consistent downward trend relative to revenues, decreasing from -20.18% to -15.74%, signifying potential optimization or maturation of capital assets. Special charges were minimal and showed a declining tendency from -0.19% to -0.25%, peaking modestly mid-period.
- Operating Income and Related Items
- Income from operations as a percentage of revenues improved steadily from 17.48% in 2020 to 23.81% in 2024, demonstrating improved operational profitability. Other operating income and expenses fluctuated, with a minor positive spike in 2023, but generally remained a small negative component.
- Interest and Financial Gains/Losses
- Net interest expense exhibited slight growth from -8% to approximately -9.5%, reflecting increased financing costs or debt levels. Gains or losses related to debt extinguishment and financial instruments remained negligible to slightly negative, with some minor positive deviations in recent years.
- Non-Operating Income and Pension Costs
- Other pension benefits demonstrated variability, moving from a small negative effect to a positive impact in 2021-2022, then reverting to near neutral in the final years. Losses from equity investments deepened slightly in 2023 and 2024, and other income (expense) presented variability with a more pronounced negative impact in 2023 and 2024.
- Pre-Tax Income and Taxation
- Income before income taxes rose from 8.94% to 13.62% over the period, showing solid improvement in overall profitability before tax considerations. The income tax expense increased in absolute terms as a percentage of revenues from -1.3% to about -3%, aligned with rising pre-tax income.
- Net Income and Shareholder Return
- Consolidated net income as a percentage of revenues increased from 7.64% in 2020 to 10.63% in 2024, illustrating enhanced net profitability. Net income attributable to noncontrolling interests increased slightly but remained around -1.3% to -1.4%. Net income attributable to Charter shareholders rose from 6.7% to 9.23%, indicating improved returns to core shareholders despite slight dips in intermediary years.