Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
Charter Communications Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The analysis of the financial structure over the reported quarters indicates several notable trends in liabilities and shareholders’ equity composition.
- Accounts payable and accrued liabilities
- This component shows a gradual increase from 5.72% in early 2019 to a peak of 7.62% by the end of 2023, indicating a steady rise in obligations related to operational expenses relative to the total capital structure.
- Current portion of long-term debt
- Fluctuations are observed, with values oscillating notably; for instance, a high of 3.35% in the first quarter of 2020 dropped significantly to around 0.7% later that year and stabilized near 1.3% towards 2023. This suggests varying short-term debt maturities impacting the liability mix periodically.
- Current liabilities
- Displayed variability with some upward movement across the timeline: beginning around 8.12% in early 2019, dipping mid-period, then increasing again to nearly 9% by late 2023. This reflects changes in short-term financial obligations beyond debt, inclusive of payables and accrued expenses.
- Long-term debt, less current portion
- A clear escalating trend is evident, rising from 47.92% at the start to over 65% by the end of 2023. This ongoing increase highlights the growing proportion of long-term financing within the company's capital structure relative to total liabilities and equity.
- Deferred income taxes
- A gradual but modest increase in percentage terms over time is recorded, from roughly 11.87% to just under 13%, implying growing deferred tax liabilities as part of the financial obligations.
- Other long-term liabilities
- Slight upward drift from around 2.46% to just above 3% suggests a moderate increase in miscellaneous long-term obligations.
- Long-term liabilities
- Consistent reinforcement in the share represented by long-term liabilities, escalating from approximately 62.25% to above 81%, underscoring the increasing dominance of long-term obligations in the overall financing mix.
- Total liabilities
- The total liabilities as a percentage of combined liabilities and equity rose from about 70.36% to stabilize near 90%, demonstrating a substantial increase in reliance on external financing and obligations over equity.
- Additional paid-in capital
- A declining pattern is observable, decreasing from over 22% to under 16%, indicating diminishing relative contributions from paid-in capital as part of total funding sources.
- Retained earnings (accumulated deficit)
- This category exhibits significant volatility, initially increasing up to 2.57% before plunging into negative territory notably after 2019, reaching as low as -10.26% at one point. This suggests considerable accumulated losses impacting the equity base.
- Treasury stock at cost
- Fluctuations with overall negative values but irregular data points show periods of increased treasury stock holdings, reflecting potential share repurchases or adjustments in equity treasury management.
- Total Charter shareholders’ equity
- A pronounced downward trend from roughly 24% to near 7-8% highlights a decreasing equity proportion relative to total capital. This contraction is consistent with the rising debt levels and accumulated deficits noted.
- Noncontrolling interests
- A gradual decline in proportion from around 5.37% to approximately 2.5% indicates reduced minority interests in the consolidated capital structure.
- Total shareholders’ equity
- Mirroring the trend in core equity, total shareholders’ equity diminished from nearly 30% to approximately 10%, underscoring a reduced equity cushion against liabilities over this timeframe.
In summary, the financial structure reflects a clear shift towards greater leverage, with long-term debt increasingly comprising the majority of liabilities and a significant contraction in shareholders’ equity. The rising liabilities, particularly long-term debt, coupled with decreasing retained earnings and equity levels, reveal a trend of increased financial risk and dependence on external funding sources over the analyzed periods.