Charter Communications Inc. (NASDAQ:CHTR)

The financial data over the period from 2019 to 2023 reveals several notable trends in operational efficiency, liquidity, leverage, and profitability metrics.

Asset Turnover

The reported and adjusted total asset turnover ratios show a gradual improvement, increasing from 0.31 in 2019 to 0.37 in 2023. This indicates a steady enhancement in the company’s efficiency in utilizing its assets to generate revenue over the five-year period.

Liquidity

Both reported and adjusted current ratios exhibit a declining trend through the period. The reported current ratio drops from 0.52 in 2019 to 0.31 in 2023, while the adjusted ratio falls from 0.56 to 0.35. These values, all below 1.0, suggest a consistent and relatively low level of short-term liquidity, which may indicate challenges in covering short-term liabilities with current assets.

Leverage

Leverage metrics indicate an increase in reported debt-related ratios from 2019 through 2022, followed by a slight reduction in 2023. The reported debt to equity ratio rises sharply from 2.51 in 2019 to a peak of 10.7 in 2022, then decreases to 8.82 in 2023. Similarly, the reported debt to capital grows from 0.72 to 0.91 before slightly declining to 0.9, and reported financial leverage escalates from 4.71 to 15.85 before decreasing to 13.28. The adjusted counterparts follow the same general trend but reflect more moderate levels, indicating adjustments that temper the extremity of leverage. Overall, the data points to a significant increase in financial leverage over the period, with a modest pullback in the most recent year.

Profitability

Profit margins and returns show a positive trajectory during the first four years and a slight decline in 2023. The reported net profit margin rises from 3.64% in 2019 to 9.36% in 2022 before decreasing to 8.35% in 2023. Adjusted net profit margins follow a similar pattern, reaching a high of 11.81% in 2021 and declining thereafter. Return on equity (ROE) exhibits a dramatic increase, from 5.3% reported in 2019 to a peak of 55.43% in 2022, before falling to 41.11% in 2023. Adjusted ROE also increases but at a more moderate pace, peaking at 18.7%. Return on assets (ROA) metrics similarly improve through 2022 and then slightly decline, with reported ROA going from 1.13% to 3.5%, then down to 3.1%. Adjusted ROA reaches 4.28% before dropping to 3.55%. These profitability trends imply enhanced operational performance and profitability until 2022, with some moderation in the latest year.

In summary, the company demonstrates improved asset utilization and profitability over the period, albeit coupled with increased financial leverage and declining liquidity ratios. The spike in leverage and ROE through 2022 suggests a greater reliance on debt financing driving higher returns, though this is accompanied by elevated risk as reflected in the declining liquidity and subsequent reduction in profitability metrics in 2023.

The financial data indicates a consistent upward trend in both revenues and asset utilization ratios over the examined period. Revenues increased steadily from US$45,764 million in 2019 to US$54,607 million in 2023, reflecting a cumulative growth that demonstrates positive business expansion and sales performance.

Total assets experienced a slight decline initially, dropping from US$148,188 million in 2019 to US$142,491 million in 2021, but subsequently recovered to US$147,193 million by the end of 2023. This suggests an initial period of asset base contraction followed by stabilization and slight growth toward the end of the period.

The reported total asset turnover ratio, which measures the efficiency of asset use in generating revenue, improved gradually from 0.31 in 2019 to 0.37 in both 2022 and 2023. This indicates a more efficient use of assets over time, with revenues generated per unit of assets increasing steadily. The adjusted total asset turnover ratio corroborates this trend, showing identical values and reinforcing the conclusion of improved asset efficiency.

Revenues

Show consistent growth year-over-year, increasing roughly 19% over five years.

Total Assets

Exhibit a slight decline in the initial years, followed by recovery near the starting value by the end of the period.

Total Asset Turnover Ratios

Improve steadily, indicating enhanced effectiveness in leveraging assets to produce revenues.

Overall, the data suggests a positive trajectory in operational performance, with increasing revenues accompanied by a more effective use of the asset base, even as the asset volumes themselves fluctuate slightly. This pattern points to sound asset management and consistent growth in business operations over the five-year span.

The financial data presents a detailed view of liquidity trends over a five-year period. The analysis focuses on current assets, current liabilities, and their adjusted counterparts, as well as the related current ratios.

Current Assets

The value of current assets exhibited a notable decline from 6,471 million US dollars in 2019 to 3,566 million US dollars in 2021. Subsequently, there was a modest recovery, with current assets increasing to 4,132 million US dollars by the end of 2023. This pattern suggests an initial reduction in liquid resources followed by a gradual rebuilding phase.

Current Liabilities

Current liabilities decreased from 12,385 million US dollars in 2019 to 9,875 million US dollars in 2020, indicating improved short-term obligations management during that year. However, from 2020 onwards, liabilities increased steadily to reach 13,214 million US dollars in 2023, surpassing the 2019 level. This upward trend denotes growing short-term financial commitments over the latest years.

Reported Current Ratio

The reported current ratio declined significantly from 0.52 in 2019 to a low of 0.29 in 2021. Despite some improvement to 0.33 in 2022, the ratio decreased again to 0.31 in 2023. These values consistently remain below 1.0, indicating that current liabilities exceed current assets throughout the period, thus pointing to potential liquidity challenges.

Adjusted Current Assets

The adjusted current assets mirror the trend observed in reported current assets, starting at 6,622 million US dollars in 2019, dipping to 3,723 million in 2021, and thereafter climbing moderately to 4,400 million in 2023. These adjustments appear to slightly elevate asset values but retain the overall declining and recovering pattern.

Adjusted Current Liabilities

The adjusted current liabilities started at 11,925 million US dollars in 2019 and decreased to 9,439 million in 2020. Subsequently, they rose gradually to 12,705 million by 2023. This trend is consistent with reported liabilities but reflects slightly lower absolute values.

Adjusted Current Ratio

The adjusted current ratio follows a similar trajectory to the reported ratio, declining from 0.56 in 2019 to 0.31 in 2021, followed by a recovery to 0.37 in 2022 and a slight fall to 0.35 in 2023. Despite adjustments, the ratio remains substantially below 1.0, reinforcing the observation of constrained liquidity.

Overall, the data illustrates a period of decreasing liquidity from 2019 through 2021, with current assets shrinking and liabilities either remaining high or increasing. The subsequent partial recovery in assets and current ratios through 2023 is positive but remains insufficient to achieve a current ratio above unity, indicating ongoing liquidity risk and potential short-term solvency pressures.

The financial data analyzed over the five-year period displays significant trends in the company's debt levels, equity base, and corresponding leverage ratios.

Total Debt

The total debt shows a consistent upward trajectory from 79,078 million USD at the end of 2019 to 97,777 million USD by the end of 2023. This steady increase indicates the company has been progressively increasing its debt obligations over the observed period.

Total Charter Shareholders’ Equity

The shareholders’ equity has declined sharply from 31,445 million USD in 2019 down to 11,086 million USD in 2023. The most pronounced decreases occurred between 2019 and 2022, with a slight recovery observed in 2023. This diminishing equity base highlights a potential erosion in net assets from a reported perspective.

Reported Debt to Equity Ratio

The reported debt-to-equity ratio has escalated dramatically from 2.51 in 2019 to a peak of 10.7 in 2022 before decreasing to 8.82 in 2023. This sharp rise mainly reflects the faster growth of debt relative to the shrinking equity base, suggesting increased financial leverage and potentially elevated financial risk.

Adjusted Total Debt

The adjusted total debt figures align closely with total debt, rising steadily from 80,271 million USD in 2019 to 99,195 million USD in 2023. This consistency reinforces the observation of increasing leverage when considering adjusted measures.

Adjusted Total Shareholders’ Equity

The adjusted shareholders’ equity, which presents a notably higher base than the reported equity, also experiences a continual decrease from 57,167 million USD in 2019 to 34,449 million USD in 2023. Despite this decline, the adjusted equity remains substantially above the reported measure, indicating a different valuation or accounting adjustments impacting the equity figures.

Adjusted Debt to Equity Ratio

The adjusted debt-to-equity ratio rises from 1.4 in 2019 to 3.06 in 2022 before slightly declining to 2.88 in 2023. Though this trend mirrors the reported ratio directionally, the adjusted ratio’s more moderate increase reflects a less severe leverage position when taking into account the adjusted equity values.

Overall, the data reveals an environment of increasing indebtedness coupled with a declining equity base, leading to significantly higher leverage ratios. While adjusted measures offer a somewhat less severe picture, the general trend points to growing financial leverage and a potential increase in financial risk over the five-year horizon.

The financial data reflects an overall increasing trend in the company's debt levels from 2019 to 2023. Total debt rose from US$79,078 million in 2019 to US$97,777 million in 2023, showing a steady increase each year. This growth suggests a rising reliance on debt financing over the five-year period.

Total capital, by comparison, exhibits slight fluctuations but remains relatively stable, with a modest increase from US$110,523 million in 2019 to US$108,863 million in 2023. The marginal decline in 2020 and 2021 followed by recovery implies the company managed to maintain its capital base despite increasing debt.

The reported debt to capital ratio climbed from 0.72 in 2019 to a peak of 0.91 in 2022, before slightly declining to 0.90 in 2023. This upward trend indicates that debt has constituted a larger proportion of capital over time, potentially implying increased financial leverage and associated risk.

When considering adjusted figures, adjusted total debt similarly increased from US$80,271 million in 2019 to US$99,195 million in 2023. Adjusted total capital showed some volatility, decreasing from US$137,438 million in 2019 to US$130,911 million in 2021, then gradually rising to US$133,644 million in 2023.

The adjusted debt to capital ratio also rose from 0.58 in 2019 to 0.75 in 2022, slightly decreasing to 0.74 in 2023. This pattern aligns with the reported ratio but at a lower magnitude, suggesting that the adjusted calculations paint a somewhat less leveraged picture, although still reflecting an increasing debt burden relative to capital.

Overall, the data points to a consistent increase in both reported and adjusted debt levels, accompanied by a stable to slightly recovering capital base, resulting in higher leverage ratios over the five years. These trends may indicate the company’s growing dependence on debt financing, which could have implications for its financial risk profile and capital structure strategy going forward.

The financial data reveals several notable trends in the company's asset base, equity, and leverage metrics over the five-year period ending in 2023.

Total assets

Total assets showed a moderate decline from 2019 to 2021, decreasing from approximately $148.2 billion to $142.5 billion. This was followed by a gradual recovery through 2022 and 2023, reaching about $147.2 billion. The overall asset base remained relatively stable across this period with slight fluctuations indicative of possible asset optimization or disposals.

Total Charter shareholders’ equity

Shareholders’ equity experienced a sharp downward trend from $31.4 billion at the end of 2019 to a low of $9.1 billion in 2022. By 2023, it modestly increased to $11.1 billion, though still substantially below the 2019 level. This significant contraction suggests either substantial losses, dividend distributions exceeding earnings, or increases in liabilities impacting net equity.

Reported financial leverage

Reported financial leverage increased markedly from 4.71 in 2019 to a peak of 15.85 in 2022, before partially retreating to 13.28 in 2023. This sharp rise in leverage corresponds inversely with the declining shareholders’ equity, indicating increased reliance on debt or other liabilities to finance assets.

Adjusted total assets

The adjusted total assets closely mirror the reported total assets, showing a slight dip from $148.3 billion in 2019 to $142.6 billion in 2021, followed by a gradual increase to $147.5 billion in 2023. This consistency between reported and adjusted figures implies minimal adjustments affecting asset valuation.

Adjusted total shareholders’ equity

Adjusted equity follows a declining trend as well, beginning at $57.2 billion in 2019 and dropping to $32.3 billion by 2022, with a minor recovery to $34.4 billion in 2023. Although adjusted equity figures are higher than reported equity, the downward pattern remains consistent, pointing to fundamental challenges affecting equity value.

Adjusted financial leverage

Adjusted leverage increased steadily from 2.59 in 2019 to 4.48 in 2022 before slightly decreasing to 4.28 in 2023. This moderated increase compared to reported leverage suggests that adjustments reduce the leverage impact but do not alter the overall trend toward greater leverage over time.

In summary, the analysis indicates that the company experienced a period of declining equity and rising leverage from 2019 through 2022, potentially signaling financial pressure or strategic uses of debt. Asset levels remained fairly stable with only minor fluctuations. The partial improvements in equity and leverage ratios in 2023 suggest initial stabilization efforts. However, the elevated leverage compared to 2019 levels implies ongoing financial risk that warrants continued monitoring.

The financial data reveals a general upward trajectory in several key metrics over the five-year period, with some fluctuations observed in the most recent year.

Net income attributable to Charter shareholders

The net income demonstrates considerable growth from 2019 to 2022, increasing from 1,668 million USD to 5,055 million USD. However, there is a noticeable decline in 2023, dropping to 4,557 million USD. Despite this decrease, the 2023 figure remains significantly higher than in 2019.

Revenues

Revenues exhibit a steady increase from 45,764 million USD in 2019 to 54,607 million USD in 2023. The growth is gradual each year, with the largest annual increment between 2020 and 2021. The revenue growth appears stable and consistent across the timeline.

Reported net profit margin

The reported net profit margin doubles from 3.64% in 2019 to around 9.36% in 2022, indicating an improvement in profitability. In 2023, there is a decline to 8.35%, which could suggest increased costs or other operational challenges affecting net profitability.

Adjusted consolidated net income

Adjusted net income follows a rising trend similar to net income, increasing substantially from 2,302 million USD in 2019 to a peak of 6,105 million USD in 2021. Subsequently, it slightly decreases over the following two years, with 5,228 million USD reported in 2023. This decline parallels the trend seen in net income, suggesting broader impacts on profitability.

Adjusted revenues

Adjusted revenues parallel the trend in reported revenues, rising from 45,730 million USD in 2019 to 54,605 million USD in 2023. Minor variations exist but the overall progression remains steady and closely matches the reported revenue figures.

Adjusted net profit margin

The adjusted net profit margin exhibits a marked improvement from 5.03% in 2019 to 11.81% in 2021, indicating enhanced operational efficiency or reduced costs on an adjusted basis. Post-2021, there is a decline to 9.57% in 2023, mirroring the trend in reported net profit margin and suggesting challenges in maintaining the earlier peak margin levels.

Overall, the data indicates a period of strong growth in both revenues and profitability up to 2021-2022, followed by a moderate contraction in profitability metrics in 2023. The continued growth in revenues despite the shrinking profit margins may imply increasing expenses or investments impacting net income, warranting further examination of cost structures and operational dynamics in the latest period.

Net income attributable to Charter shareholders

The net income shows a strong upward trend from 2019 to 2022, increasing from $1,668 million in 2019 to a peak of $5,055 million in 2022. However, in 2023, there is a noticeable decline to $4,557 million, indicating a reduction in profitability compared to the previous year.

Total Charter shareholders’ equity

The total shareholders' equity experiences a declining trend throughout the period from $31,445 million in 2019 to a low of $9,119 million in 2022, followed by a slight recovery to $11,086 million in 2023. This decline suggests significant reductions in book value or accumulation of losses during the earlier years, with a minor improvement in the latest year.

Reported Return on Equity (ROE)

Reported ROE shows a significant rise from 5.3% in 2019 to a high of 55.43% in 2022, indicating improved profitability relative to shareholders’ equity. Despite the decrease in net income in 2023, ROE remains elevated at 41.11%, reflecting the lower equity base contributing to amplified returns.

Adjusted consolidated net income

The adjusted net income follows a pattern similar to the reported net income, increasing from $2,302 million in 2019 to a peak of $6,105 million in 2021, then slightly decreasing to $6,048 million in 2022 and further to $5,228 million in 2023. The adjusted figures generally reflect stronger profitability compared to reported net income across all years.

Adjusted total shareholders’ equity

The adjusted shareholders' equity declines steadily from $57,167 million in 2019 to $32,337 million in 2022, followed by a modest increase to $34,449 million in 2023. The higher magnitude compared to reported equity suggests adjustments account for additional factors affecting equity valuation.

Adjusted Return on Equity (ROE)

Adjusted ROE grows from 4.03% in 2019 to 18.7% in 2022, indicating improving profitability on an adjusted equity basis. In 2023, adjusted ROE declines to 15.18%, mirroring the decrease in adjusted net income and the slight recovery in adjusted equity.

The analysis of the annual financial data reveals several notable trends in the company's financial performance over the five-year period.

Net Income Attributable to Charter Shareholders

Net income showed significant growth from 2019 to 2022, increasing from $1,668 million in 2019 to a peak of $5,055 million in 2022. However, there was a decline in 2023, with net income decreasing to $4,557 million. Despite this reduction, the 2023 figure remains substantially higher than the 2019 base level, indicating overall positive profitability growth.

Total Assets

Total assets experienced a slight decline from $148,188 million in 2019 to $142,491 million in 2021, followed by a moderate recovery to $147,193 million by 2023. This trend suggests a period of asset optimization or divestment in the early years, with stabilization in the latter period.

Reported Return on Assets (ROA)

The reported ROA displayed a general upward trend from 1.13% in 2019 to a high of 3.5% in 2022, reflecting increasing efficiency in asset utilization to generate net income. The ROA slightly declined to 3.1% in 2023, consistent with the observed decrease in net income, but still denotes an overall improvement compared to earlier years.

Adjusted Consolidated Net Income

Adjusted net income followed a similar positive trajectory to reported net income, rising from $2,302 million in 2019 to its highest point at $6,105 million in 2021. It then slightly decreased yet remained robust at $6,048 million in 2022 before declining to $5,228 million in 2023. The adjustments indicate that underlying profitability, excluding certain items, experienced strong growth and maintained a high level despite the recent decline.

Adjusted Total Assets

Adjusted total assets mirrored the pattern of total assets with a decrease from $148,339 million in 2019 to $142,648 million in 2021, followed by a gradual increase to $147,461 million by 2023. This pattern aligns with the company's overall asset base management strategies.

Adjusted Return on Assets (ROA)

The adjusted ROA showed strong improvement, increasing markedly from 1.55% in 2019 to a peak of 4.28% in 2021. There was a slight decrease to 4.18% in 2022 and a more pronounced drop to 3.55% in 2023. These figures imply enhanced asset efficiency after adjustments over the bulk of the period, with a recent moderation consistent with the declines in adjusted net income.

Overall, the data illustrate sustained growth in profitability and improved asset efficiency over the analyzed years, despite some volatility in the most recent period. Asset levels demonstrate moderate fluctuation but appear to stabilize toward the end of the period. The divergence between reported and adjusted figures highlights the impact of non-operating factors or accounting adjustments on the company’s financial outcomes.