Charter Communications Inc. (NASDAQ:CHTR)

The financial data reveals a declining trend in current assets from 2019 to 2021, followed by a modest recovery in the subsequent two years. Specifically, current assets decreased significantly from $6,471 million in 2019 to $3,566 million in 2021, indicating a reduction of approximately 45%. This decline suggests a possible contraction in liquid or short-term assets over the initial three-year period.

After reaching the low in 2021, current assets experienced a gradual increase, reaching $4,017 million in 2022 and $4,132 million in 2023. While the recovery is evident, current assets in 2023 remain notably below the 2019 peak, implying that the company might still be in a phase of rebuilding its short-term asset base or managing more conservative asset holdings.

The "Adjusted current assets" category follows a similar pattern but is consistently slightly higher than reported current assets across all years. Adjusted current assets decreased from $6,622 million in 2019 to $3,723 million in 2021. Afterward, this figure rose to $4,236 million in 2022 and $4,400 million in 2023. The consistent premium of adjusted current assets over current assets may be due to adjustments for certain receivables or inventory valuations, reflecting management's attempt to present a more accurate or conservative measure of liquidity.

Overall, the data indicates that the company experienced a noteworthy contraction of short-term assets through 2021, with subsequent partial recovery in the following two years. The steady improvement in adjusted current assets suggests ongoing efforts to maintain or improve operational liquidity and possibly working capital efficiency.

The analysis of the annual financial data reveals a relatively stable asset base over the five-year period under review. Total assets experienced a modest decline from 2019 to 2021, moving from approximately 148 billion US dollars to around 142.5 billion US dollars. This period reflects a slight contraction in asset size by about 3.8%. However, beginning in 2022, total assets demonstrated a recovering trend, increasing gradually in subsequent years to reach approximately 147.2 billion US dollars by the end of 2023. This recovery indicates a return towards the asset levels observed at the start of the period.

Similarly, adjusted total assets, which likely account for certain recalculations or eliminations to better reflect the economic reality, follow a comparable pattern. Starting at roughly 148.3 billion US dollars in 2019, these adjusted figures decreased slightly through 2021 before rising again through to 2023, where they settled at around 147.5 billion US dollars. This parallel trend between total assets and adjusted total assets suggests consistency in asset composition and valuation adjustments over the years.

Trends in Asset Base

A moderate reduction in asset totals occurred from 2019 through 2021, followed by a recovery phase from 2022 onwards.

This pattern suggests that the company possibly underwent a consolidation or asset optimization phase before stabilizing its holdings.

Comparative Asset Measures

Both total assets and adjusted total assets move in close alignment, indicating that adjustments made for financial reporting purposes did not drastically alter the overall asset valuation.

Stability and Growth

By the end of 2023, asset figures had almost regained their initial levels, pointing to a regained stability and possible growth momentum after a short period of decline.

Current Liabilities

Current liabilities exhibited a fluctuating trend over the five-year period. Initially, there was a decrease from 12,385 million USD in 2019 to 9,875 million USD in 2020, indicating a reduction in short-term obligations. However, this was followed by an increase in 2021 to 12,458 million USD. The level then slightly declined in 2022 to 12,065 million USD but rose again to 13,214 million USD in 2023, reaching the highest point in the observed period.

Adjusted Current Liabilities

Adjusted current liabilities generally mirrored the movements of current liabilities, with an initial decrease from 11,925 million USD in 2019 to 9,439 million USD in 2020. After this drop, values rose to 11,997 million USD in 2021, followed by a moderate decline to 11,554 million USD in 2022. In 2023, adjusted current liabilities increased to 12,705 million USD. The adjusted figures consistently remained somewhat below the unadjusted current liabilities but followed a similar overall pattern of decline in 2020 and subsequent recovery.

Summary

The data reveals variability in short-term financial obligations over the period, with a significant dip in 2020 likely reflecting some operational or strategic response to external factors. The rebound in subsequent years suggests a return to or expansion of activities resulting in increased liabilities. Both the reported current liabilities and adjusted current liabilities show parallel trends, indicating consistency in adjustments applied. The rising liabilities in 2023 could imply an increase in operational scale or changes in working capital management that should be monitored for implications on liquidity and financial risk.

The financial data indicates an overall increasing trend in both total liabilities and adjusted total liabilities over the five-year period from 2019 to 2023. This suggests that the company has been incrementally increasing its financial obligations each year.

Total liabilities

Started at 109,377 million US dollars in 2019 and grew steadily each year, reaching 132,475 million US dollars by the end of 2023. This represents a cumulative increase of approximately 21% over the five years, with the most notable incremental increases occurring between 2020 and 2021, and continuing with moderate growth through 2022 and 2023.

Adjusted total liabilities

Also displayed a consistent upward trajectory from 91,172 million US dollars in 2019 to 113,012 million US dollars in 2023. This is a rise of roughly 24% over the observed period. The adjusted figures are consistently lower than the total liabilities, indicating some form of adjustment or exclusion applied to the total liabilities figure, which also follows a growth pattern similar to the unadjusted total liabilities.

The steady growth in liabilities suggests the company may be financing expansion, operations, or other activities through increased debt or obligations. The parallel upward trend in both total and adjusted figures implies stability in how adjustments are proportionally applied over time. However, the increasing liability levels may also indicate a rising financial risk if not accompanied by commensurate growth in assets or equity.

The analysis of the shareholders’ equity data over the five-year period highlights a notable downward trend in the total Charter shareholders’ equity from 2019 through 2022, followed by a moderate recovery in 2023. Specifically, total shareholders’ equity declined sharply from 31,445 million USD in 2019 to 9,119 million USD in 2022, representing a significant reduction. This decline indicates substantial erosion in the book value attributable to shareholders during these years. However, in 2023, there is a partial reversal with total shareholders’ equity increasing to 11,086 million USD, suggesting some recovery or stabilization.

The adjusted total shareholders’ equity follows a similar pattern but with higher absolute values across all years. It decreased from 57,167 million USD in 2019 to 32,337 million USD in 2022, showing a consistent declining trend, albeit less steep than the unadjusted figures. Unlike total shareholders’ equity, adjusted equity experiences a slight increase in 2023 to 34,449 million USD, indicating a modest rebound.

The overall pattern suggests that while the company faced erosion in shareholder equity—potentially due to factors such as losses, dividend payments exceeding earnings, share repurchases, or other equity reductions—there is evidence in the latest year of a turnaround or at least a slowing of equity depletion. The difference in magnitude between total and adjusted shareholders’ equity points to the impact of adjustments that may account for non-recurring items, fair value changes, or other comprehensive income elements, which affect the equity position differently than the reported totals.

The financial data exhibits distinct trends in the company's debt, equity, and capital over the five-year period from 2019 to 2023.

Total reported debt

The total reported debt shows a consistent upward trajectory, increasing from approximately US$79.1 billion in 2019 to about US$97.8 billion in 2023. This steady rise suggests ongoing borrowing or debt issuance activities, reflecting either financing for expansion, acquisitions, or other capital-intensive undertakings.

Total Charter shareholders’ equity

There is a notable decline in total shareholders’ equity from US$31.4 billion in 2019 to a low of roughly US$9.1 billion in 2022, followed by a modest recovery to approximately US$11.1 billion in 2023. This sharp decrease over the initial four years indicates significant erosion in equity value, potentially due to losses, share buybacks, or dividend payments exceeding earnings, with partial stabilization observed in the final year.

Total reported capital

Total reported capital remains relatively stable across the period, fluctuating mildly between US$105.6 billion and US$110.5 billion. This stability arises from the inverse relationship between increasing debt and decreasing equity, maintaining the overall capital structure within a narrow range.

Adjusted total debt

Adjusted total debt follows a slightly higher but similar increasing pattern to total reported debt, rising from approximately US$80.3 billion in 2019 to nearly US$99.2 billion in 2023. The adjustment implies recognition of additional financial obligations not captured in the reported debt, reinforcing the upward debt trend and highlighting growing leverage.

Adjusted total shareholders’ equity

Adjusted equity demonstrates a decline from about US$57.2 billion in 2019 to US$32.3 billion in 2022, with a moderate recovery to US$34.4 billion in 2023. Despite being consistently higher than the reported equity values, the downward trend remains clear, signaling persistent erosion of the equity base even when adjustments are considered.

Adjusted total capital

This metric shows relative stability similar to the reported total capital, marginally decreasing from roughly US$137.4 billion in 2019 to about US$131.3 billion in 2022, and rising slightly to US$133.6 billion in 2023. The steadiness suggests that overall capital composition remains balanced despite fluctuations in debt and equity components.

Revenue Growth

Revenues demonstrated a consistent upward trajectory over the five-year period analyzed. Starting at approximately 45.8 billion US dollars at the end of 2019, revenues increased steadily each year, reaching approximately 54.6 billion US dollars by the end of 2023. This represents a cumulative growth of roughly 19.3% over the period, indicating stable expansion in the company’s top-line performance.

Adjusted Revenues Trend

The adjusted revenues closely mirror the reported revenues, with minor variations each year. Beginning at around 45.7 billion US dollars in 2019, adjusted revenues rose steadily to about 54.6 billion US dollars by 2023. The close alignment between reported and adjusted figures suggests that adjustments made for non-recurring items or other factors had minimal impact on overall revenue trends.

Year-over-Year Changes

The annual increase in revenues decreased slightly over time. From 2019 to 2020, revenues increased by approximately 5.1%. The growth continued but at a slightly tapered pace, with increases of around 7.5% in 2021, 4.5% in 2022, and 1.1% in 2023. This pattern may indicate a maturing market position or rising market saturation, resulting in slower revenue expansion in recent years.

Overall Performance Insight

The consistent growth in both reported and adjusted revenues suggests effective business operations and sustained demand for the company’s services or products. While revenue growth has moderated in the latest year, the overall trend remains positive, reflecting resilience and steady performance in a competitive environment.

Net income attributable to Charter shareholders

The net income showed a marked upward trend from 2019 to 2022, increasing from $1,668 million in 2019 to a peak of $5,055 million in 2022. This represents a significant growth over the four-year period. However, in 2023, there was a noticeable decline to $4,557 million, indicating a reduction in net income compared to the previous year despite being substantially higher than the 2019 level.

Adjusted consolidated net income

Adjusted consolidated net income followed a similar pattern, rising steadily from $2,302 million in 2019 to a high of $6,105 million in 2021. It then slightly decreased to $6,048 million in 2022 and further declined in 2023 to $5,228 million. Despite the recent decreases, adjusted consolidated net income remains robust and significantly above the starting point in 2019.

Overall trend and insights

Both net income attributable to Charter shareholders and adjusted consolidated net income experienced strong growth through 2021 and 2022, reflecting improved profitability and possibly operational efficiencies during this period. The declines in 2023 suggest emerging challenges or changes in market conditions impacting earnings. These decreases warrant further investigation to determine underlying causes, such as increased costs, changes in revenue, or external economic factors. Nevertheless, profitability levels remain elevated relative to the 2019 base, indicating a solid overall financial position.