Charter Communications Inc. (NASDAQ:CHTR)

Current ratio

The current ratio exhibited a decline from 0.4 in 2020 to 0.29 in 2021, indicating a reduction in short-term liquidity. Subsequently, there was a slight increase to 0.33 in 2022, followed by a marginal decrease to 0.31 in 2023, which then remained stable through 2024. Overall, the current ratio remained below 1 throughout the period, suggesting persistent challenges in covering current liabilities with current assets.

Quick ratio

The quick ratio followed a similar downward trend, decreasing from 0.32 in 2020 to 0.26 in 2021. It improved somewhat to 0.30 in 2022, indicating a modest recovery in liquid assets excluding inventory. However, the ratio declined again to 0.28 in 2023 and further to 0.26 in 2024, reflecting ongoing limited liquidity in more readily convertible assets.

Cash ratio

The cash ratio demonstrated a continuous decline across the years, starting at 0.10 in 2020 and halving to 0.05 by 2021. It then stabilized at 0.05 until 2023 before dropping further to 0.03 in 2024. This trend indicates a progressive reduction in cash and cash equivalents relative to current liabilities, signaling tightening cash reserves.

Current Assets

The current assets demonstrate a general upward trend from 2020 to 2024, increasing from $3,906 million in 2020 to $4,233 million in 2024. There was a slight decline in 2021 to $3,566 million, but the figures recovered and continued to rise in the subsequent years, reaching their highest value in 2024.

Current Liabilities

Current liabilities have consistently increased over the same period. Starting at $9,875 million in 2020, they rose sharply to $12,458 million in 2021. Although there was a slight dip to $12,065 million in 2022, the liabilities increased again in 2023 and 2024, reaching $13,486 million at the end of the period.

Current Ratio

The current ratio, representing the company's ability to cover short-term obligations with short-term assets, has remained below 1.0 throughout the period, indicating current liabilities exceeded current assets. The ratio declined from 0.4 in 2020 to 0.29 in 2021, reflecting a worsening liquidity position. Although there was a modest improvement to 0.33 in 2022, the ratio stabilized near 0.31 in both 2023 and 2024, suggesting persistent challenges in liquidity management.

The financial data reveals several notable trends related to liquidity over the five-year period.

Total Quick Assets

The value of total quick assets showed moderate fluctuations. Starting at 3,199 million US dollars at the end of 2020, it slightly decreased in 2021 to 3,180 million, followed by a rise reaching a peak of 3,674 million in 2023 before tapering down to 3,556 million in 2024. This suggests some variability but a generally stable level of quick assets over the period.

Current Liabilities

Current liabilities generally increased throughout the timeframe. From 9,875 million US dollars at the end of 2020, liabilities rose significantly to 12,458 million in 2021, then slightly declined in 2022 but increased again in subsequent years, reaching 13,486 million in 2024. The upward trend indicates growing short-term obligations.

Quick Ratio

The quick ratio, which measures the ability to cover current liabilities with quick assets, declined overall. Beginning at 0.32 in 2020, it dropped to 0.26 in 2021, showed a minor recovery to 0.30 in 2022, but then declined again to 0.28 and subsequently 0.26 by 2024. This downward trend reflects weakening liquidity, as the company's immediate asset coverage relative to current liabilities diminished.

In summary, while total quick assets remained relatively stable with slight increases and decreases, the rise in current liabilities outpaced these assets, resulting in a declining quick ratio. This trend indicates a potential increase in liquidity risk, as the company’s ability to meet short-term obligations using its most liquid assets weakened over the analyzed period.

Total Cash Assets

The total cash assets exhibit a fluctuating trend over the five-year period. Initially, there was a notable decline from $998 million at the end of 2020 to $601 million in 2021. This was followed by a moderate increase to $645 million in 2022 and a further rise to $709 million in 2023. However, in 2024, there was a significant decrease to $459 million, the lowest point in the observed timeframe.

Current Liabilities

Current liabilities demonstrate a consistent upward trajectory throughout the period. Starting at $9,875 million in 2020, liabilities increased substantially each year, reaching $12,458 million in 2021, slightly declining to $12,065 million in 2022, but then rising again to $13,214 million in 2023 and further to $13,486 million in 2024. Overall, this represents a significant growth in current liabilities over the five years.

Cash Ratio

The cash ratio steadily decreased from 0.10 in 2020 to 0.05 in 2021 and remained stable at 0.05 through 2022 and 2023. In 2024, the ratio further declined to 0.03, indicating a reduced ability to cover current liabilities with cash and cash equivalents. This reducing trend suggests increased liquidity risk over time.