Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Two-Component Disaggregation of ROE

Charter Communications Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 41.11% = 3.10% × 13.28
Dec 31, 2022 55.43% = 3.50% × 15.85
Dec 31, 2021 33.12% = 3.27% × 10.14
Dec 31, 2020 13.53% = 2.23% × 6.06
Dec 31, 2019 5.30% = 1.13% × 4.71

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.


Three-Component Disaggregation of ROE

Charter Communications Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 41.11% = 8.35% × 0.37 × 13.28
Dec 31, 2022 55.43% = 9.36% × 0.37 × 15.85
Dec 31, 2021 33.12% = 9.01% × 0.36 × 10.14
Dec 31, 2020 13.53% = 6.70% × 0.33 × 6.06
Dec 31, 2019 5.30% = 3.64% × 0.31 × 4.71

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.


Five-Component Disaggregation of ROE

Charter Communications Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 41.11% = 0.74 × 0.54 × 20.76% × 0.37 × 13.28
Dec 31, 2022 55.43% = 0.76 × 0.59 × 20.78% × 0.37 × 15.85
Dec 31, 2021 33.12% = 0.81 × 0.59 × 18.88% × 0.36 × 10.14
Dec 31, 2020 13.53% = 0.84 × 0.50 × 16.00% × 0.33 × 6.06
Dec 31, 2019 5.30% = 0.79 × 0.36 × 12.90% × 0.31 × 4.71

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.


Two-Component Disaggregation of ROA

Charter Communications Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 3.10% = 8.35% × 0.37
Dec 31, 2022 3.50% = 9.36% × 0.37
Dec 31, 2021 3.27% = 9.01% × 0.36
Dec 31, 2020 2.23% = 6.70% × 0.33
Dec 31, 2019 1.13% = 3.64% × 0.31

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in profitability measured by net profit margin ratio.


Four-Component Disaggregation of ROA

Charter Communications Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 3.10% = 0.74 × 0.54 × 20.76% × 0.37
Dec 31, 2022 3.50% = 0.76 × 0.59 × 20.78% × 0.37
Dec 31, 2021 3.27% = 0.81 × 0.59 × 18.88% × 0.36
Dec 31, 2020 2.23% = 0.84 × 0.50 × 16.00% × 0.33
Dec 31, 2019 1.13% = 0.79 × 0.36 × 12.90% × 0.31

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in effect of interest expense measured by interest burden ratio.


Disaggregation of Net Profit Margin

Charter Communications Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 8.35% = 0.74 × 0.54 × 20.76%
Dec 31, 2022 9.36% = 0.76 × 0.59 × 20.78%
Dec 31, 2021 9.01% = 0.81 × 0.59 × 18.88%
Dec 31, 2020 6.70% = 0.84 × 0.50 × 16.00%
Dec 31, 2019 3.64% = 0.79 × 0.36 × 12.90%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the decrease in net profit margin ratio over 2023 year is the decrease in effect of interest expense measured by interest burden ratio.