Charter Communications Inc. (NASDAQ:CHTR)

The analysis of the financial data over the five-year period reveals a generally positive trend in current asset levels. The reported current assets show a slight decline from 3,906 million US dollars at the end of 2020 to 3,566 million US dollars in 2021. However, thereafter, there is a consistent increase each year, reaching 4,233 million US dollars by the end of 2024. This indicates an overall strengthening of the company's short-term financial position over the period.

Similarly, adjusted current assets follow a comparable trend with values consistently higher than the reported current assets, suggesting adjustments that enhance the liquidity or quality of the assets considered. Starting at 4,100 million US dollars in 2020, they decrease slightly to 3,723 million US dollars in 2021 but rise steadily in subsequent years, reaching 4,437 million US dollars by 2024.

Year-over-year comparison:

Both current assets and adjusted current assets experienced a decline in 2021 relative to 2020, which might reflect temporary liquidity constraints or accounting changes. From 2021 onward, the growth in these asset categories suggests improved asset management or increased asset base potentially due to business expansion or improved operational cash flows.

Magnitude of change:

The increase in current assets from 2021 to 2024 is approximately 18.7%, while adjusted current assets increased approximately 19.2% during the same period. The adjusted figures remain consistently above the reported current assets, highlighting adjustments possibly related to inventory valuation, receivables quality, or other liquidity-related reclassifications.

Insight:

The steady recovery and growth in both current and adjusted current assets after 2021 might indicate improved financial stability and operational efficiency. The consistent upward trend in adjusted current assets suggests a positive reassessment of asset quality or liquidity.

Total Assets

The total assets exhibit a generally increasing trend over the five-year period. Starting at 144,206 million US dollars in 2020, the total assets slightly decreased to 142,491 million US dollars in 2021, indicating a minor contraction during that year. Subsequently, the assets increased each year: reaching 144,523 million in 2022, 147,193 million in 2023, and further growing to 150,020 million by 2024. This steady growth after 2021 suggests a consistent expansion of the company's asset base in recent years.

Adjusted Total Assets

Adjusted total assets mirror the total asset figures closely but present slightly higher values across the years. Beginning at 144,400 million US dollars in 2020, a minor decline to 142,648 million occurred in 2021, consistent with the trend seen in total assets. Thereafter, adjusted total assets experienced gradual increases to 144,742 million in 2022, 147,461 million in 2023, and 150,224 million in 2024. The marginally higher adjusted figures suggest certain valuation or accounting adjustments but reinforce the overall pattern of asset growth observed in the company.

The financial data for current liabilities over the five-year period exhibits a generally increasing trend. The reported current liabilities increased from US$9,875 million at the end of 2020 to US$13,486 million by the end of 2024. This represents a cumulative rise of approximately 36.6% over the period, indicating a growing short-term obligation on the company’s balance sheet.

Adjusted current liabilities, which likely represent a refined measure excluding certain items for improved comparability, also show a similar upward trajectory. These values increased from US$9,439 million in 2020 to US$13,030 million in 2024. The adjusted figures consistently remain slightly below the reported current liabilities, suggesting some recurring adjustments in the short-term liabilities.

Trend Analysis for Current Liabilities

The year 2021 saw a significant increase of roughly 26.2% compared to 2020, rising from US$9,875 million to US$12,458 million. This substantial jump was followed by a modest decrease in 2022, where liabilities declined to US$12,065 million. However, from 2022 onwards, current liabilities resumed an upward path, reaching the highest level in 2024.

Trend Analysis for Adjusted Current Liabilities

Adjusted current liabilities followed a similar pattern: a sharp increase between 2020 and 2021, a small decline in 2022, and continuous growth in the following years. This consistency indicates the adjustments applied do not significantly alter the overall trend of increasing short-term liabilities.

Implications

The increasing current liabilities may reflect the company's growing operational scale or possibly changes in working capital management strategies, such as increased accounts payable or short-term borrowings. The reduction observed in 2022 could suggest corrective actions or seasonal factors impacting the liabilities management. The continued rise post-2022 indicates ongoing pressure or strategic choice to maintain higher levels of current liabilities.

Total liabilities

The total liabilities demonstrate a consistent upward trend from 113,925 million USD at the end of 2020 to a peak of 132,475 million USD at the end of 2023. However, there is a slight decrease observed in 2024, where total liabilities decline to 130,313 million USD. Overall, the liabilities increased by approximately 14.5% over the five-year period, indicating a growing leverage or obligations during this time frame.

Adjusted total liabilities

Adjusted total liabilities follow a similar trajectory, rising steadily from 95,346 million USD in 2020 to a maximum of 113,012 million USD in 2023. In 2024, a reduction is noted, bringing the figure down to 111,012 million USD. This trend closely mirrors the total liabilities but consistently remains lower by around 15-20%, which might reflect adjustments for certain liabilities excluded or modified to provide a more conservative or operational perspective. The increase over the period is roughly 16.5%, with a slight reduction in the final year mitigating total growth.

Trend analysis summary

Both total and adjusted total liabilities exhibit steady growth over the initial four years, suggesting expansion or increased financing activities. The marginal decline in 2024 could indicate strategic deleveraging or repayment of debts. The parallel movement of adjusted liabilities with total liabilities implies that the adjustments maintain a proportional relationship and do not significantly alter the overall leverage profile during this period.

The analysis of the shareholders’ equity data over the five-year period reveals notable fluctuations and trends. The total Charter shareholders’ equity experienced a significant decline from 23,805 million US dollars at the end of 2020 to 9,119 million US dollars by the end of 2022. This downward trend reverses starting in 2023, with total shareholders’ equity increasing to 11,086 million US dollars and further to 15,587 million US dollars in 2024. Despite the recovery, the total shareholders’ equity in 2024 remains below the 2020 level.

Adjusted total shareholders’ equity follows a somewhat similar trajectory but at consistently higher values than the unadjusted figures. It begins at 49,054 million US dollars in 2020 and declines steadily to 32,337 million US dollars by the end of 2022. From 2023 onward, adjusted total shareholders’ equity shows moderate growth, reaching 34,449 million US dollars and then 39,212 million US dollars in 2024. This suggests a partial recovery but also indicates that the adjusted equity level in 2024 is still lower than the starting point in 2020.

Total Charter Shareholders’ Equity

Displayed a sharp decline in the first three years, losing more than 60% of its value from 2020 to 2022.

Recovered by approximately 71% from the 2022 low to 2024, though it remained below the initial 2020 level.

Adjusted Total Shareholders’ Equity

Also experienced a downward trend initially, decreasing by about 34% during 2020 to 2022.

Showed a gradual increase thereafter, recovering about 21% between 2022 and 2024.

Overall, both total and adjusted shareholders’ equity experienced a pronounced decrease during the first three years analyzed, indicative of possible financial challenges or significant equity reductions. The subsequent upward trend in both categories starting from 2023 points to an improvement or stabilization in shareholder value, although levels have not fully returned to those observed in 2020. The gap between total and adjusted equity figures suggests that adjustments—likely related to accounting or valuation methodologies—play an important role in understanding the company’s underlying financial position.

The financial data reveals several notable trends regarding the debt, equity, and overall capital structure over the five-year period considered.

Total Reported Debt

The total reported debt increased steadily from $82,752 million in 2020 to a peak of $98,202 million in 2023, before slightly declining to $95,763 million in 2024. This suggests a period of growing indebtedness, followed by a modest reduction in the latest year.

Total Charter Shareholders’ Equity

The shareholders’ equity exhibits a significant decline from $23,805 million in 2020 to a low of $9,119 million in 2022. Subsequently, equity improved to $15,587 million by 2024, indicating some recovery in the company’s net asset base after prior contractions.

Total Reported Capital

Total reported capital, the sum of debt and shareholders’ equity, remained relatively stable, ranging between approximately $106 billion and $111 billion over the entire timeline. This suggests that changes in debt and equity offset each other to maintain overall capital levels.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported debt, increasing from $84,097 million in 2020 to a high of $99,620 million in 2023, then decreasing to $97,176 million in 2024. The adjusted measure consistently shows slightly higher debt values compared to the reported figures.

Adjusted Total Shareholders’ Equity

The adjusted equity demonstrates a declining trend from $49,054 million in 2020 to $32,337 million in 2022, followed by gradual improvement, reaching $39,212 million in 2024. This pattern aligns broadly with the reported shareholders' equity trend but on a larger scale.

Adjusted Total Capital

Adjusted total capital remains fairly consistent, increasing modestly from $133,151 million in 2020 to $136,388 million in 2024. This indicates a stable capital base after accounting for adjustments.

Overall, the data indicates that while the company’s debt levels increased over the initial years before stabilizing and slightly declining, shareholders’ equity experienced a significant reduction followed by recovery. The total capital remained relatively stable, implying that fluctuations in debt and equity were inverse and balanced over the five-year horizon. The adjusted figures suggest that measurements considering additional factors portray higher equity and capital levels compared to the reported figures, which may reflect differences in accounting or valuation methods used for the adjustments.

The financial data reveals a consistent upward trend in both reported and adjusted revenues over the five-year period. Starting from 48,097 million US dollars in 2020, reported revenues have grown steadily each year, reaching 55,085 million US dollars by the end of 2024. This represents a total increase of approximately 14.5% over the period.

Similarly, adjusted revenues follow a nearly identical trajectory, starting at 48,074 million US dollars in 2020 and increasing to 55,032 million US dollars in 2024. The minor differences between reported and adjusted revenues suggest stability in any adjustments applied, indicating that non-recurring items or accounting adjustments have had a limited impact on revenue figures during this time frame.

The year-over-year increases are relatively modest but consistent, with revenue growth slowing slightly after 2022. Between 2020 and 2021, revenues increased by approximately 7.4%, followed by a 4.5% increase from 2021 to 2022. Growth then decelerates, with annual increases of around 1.1% and 0.9% for 2023 and 2024 respectively. This pattern may suggest nearing market saturation or increased competitive pressures affecting the revenue growth rate.

Overall, the revenue performance reflects steady expansion with a gradual deceleration in growth rate, maintaining a positive trend without significant volatility or dramatic fluctuations.

Net Income Attributable to Charter Shareholders

The net income attributable to Charter shareholders demonstrated a general upward trend over the analyzed period, with fluctuations observed in certain years. Starting at $3,222 million at the end of 2020, net income increased substantially to $4,654 million in 2021. This growth continued into 2022, reaching $5,055 million. However, there was a notable decline in 2023, with net income decreasing to $4,557 million. By 2024, net income rebounded to $5,083 million, marking the highest value in the period examined.

Adjusted Consolidated Net Income

The adjusted consolidated net income also exhibited an overall ascending trajectory. From $4,161 million in 2020, this metric rose sharply to $6,105 million in 2021, reflecting strong operational performance or favorable adjustments. In 2022, it slightly decreased to $6,048 million but remained relatively stable compared to the previous year. A more pronounced drop occurred in 2023, with adjusted net income falling to $5,228 million. In 2024, recovery was evident as adjusted consolidated net income increased again to $5,649 million.

Comparative Insights

Both net income attributable to shareholders and adjusted consolidated net income followed similar patterns of growth during the early years, followed by declines in 2023 and subsequent recovery in 2024. The adjusted consolidated net income consistently exceeded the net income attributable to shareholders by a considerable margin each year, indicating ongoing adjustments that enhance or normalize earnings figures. The fluctuations in 2023 suggest the presence of adverse factors affecting profitability during that year, with resilience shown in the recovery phase of 2024.