Charter Communications Inc. (NASDAQ:CHTR)

The financial data reveals notable trends in long-term debt, shareholders' equity, and the debt-to-equity ratio over the examined period.

Long-term debt, including current portion

The long-term debt exhibited a steady increase throughout the years, starting from approximately $12.3 billion in 2010 and rising consistently to reach nearly $97.8 billion by the end of 2023. Significant increases can be observed from 2014 onwards, with the debt nearly tripling from 2014 ($21.0 billion) to 2016 ($61.7 billion). After 2016, the growth rate of the long-term debt slowed but continued an upward trajectory, indicating ongoing borrowing or financing activities.

Total Charter shareholders’ equity (deficit)

Shareholders' equity experienced considerable fluctuations during the timeframe. Initially, it showed a downward trend, declining from $1.5 billion in 2010 to a negative position (-$46 million) in 2015. From 2016 onwards, there was a sharp recovery, with equity increasing substantially to a peak around $40.1 billion in 2016. Following that peak, shareholders' equity gradually decreased year-over-year, falling to approximately $11.1 billion in 2023. This pattern suggests an initial period of financial strain followed by significant recapitalization or asset revaluation, but also a later decline in net equity value.

Debt to equity ratio

The debt-to-equity ratio reflects considerable volatility. Initially, it was elevated, rising dramatically from 8.33 in 2010 to an extreme high of 143.99 in 2014, indicating a heavily leveraged position and potentially amplified financial risk. After 2014, data is missing for 2015, but from 2016 onwards, the ratio decreased significantly to 1.54, signaling an improvement in equity relative to debt or changes in capital structure. However, from 2017 to 2021, the ratio rose progressively from 1.8 to a peak of 10.7 in 2022, then slightly declined to 8.82 in 2023, suggesting renewed increases in leverage or reductions in equity.

Overall, the company’s capital structure appears to have undergone substantial transformation, with marked increases in debt financing and variable equity levels. The elevated and fluctuating debt-to-equity ratios point to periods of high leverage, which may impact financial stability and risk profile. The data indicates proactive management of equity and debt, perhaps in response to strategic financing needs or market conditions, with a focus on balancing growth and financial risk over time.