Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Charter Communications Inc., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 6.52 3.48 2.51 2.01 1.80
Debt to equity (including operating lease liability) 6.62 3.53 2.55 2.01 1.80
Debt to capital 0.87 0.78 0.72 0.67 0.64
Debt to capital (including operating lease liability) 0.87 0.78 0.72 0.67 0.64
Debt to assets 0.64 0.57 0.53 0.50 0.48
Debt to assets (including operating lease liability) 0.65 0.58 0.54 0.50 0.48
Financial leverage 10.14 6.06 4.71 4.03 3.75
Coverage Ratios
Interest coverage 2.58 2.12 1.64 1.48 1.33
Fixed charge coverage 2.42 2.00 1.58 1.43 1.30

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Charter Communications Inc. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Charter Communications Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Charter Communications Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Charter Communications Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Charter Communications Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Charter Communications Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Charter Communications Inc. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Charter Communications Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Charter Communications Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity

Charter Communications Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 2,997 1,008 3,500 3,290 2,045
Long-term debt, less current portion 88,564 81,744 75,578 69,537 68,186
Total debt 91,561 82,752 79,078 72,827 70,231
 
Total Charter shareholders’ equity 14,050 23,805 31,445 36,285 39,084
Solvency Ratio
Debt to equity1 6.52 3.48 2.51 2.01 1.80
Benchmarks
Debt to Equity, Competitors2
Alphabet Inc. 0.06 0.07 0.02 0.02 0.03
Comcast Corp. 0.99 1.15 1.24 1.56 0.94
Meta Platforms Inc. 0.00 0.00 0.00 0.00 0.00
Netflix Inc. 0.97 1.47 1.95 1.98 1.81
Walt Disney Co. 0.62 0.71 0.53 0.43 0.62
Debt to Equity, Sector
Media & Entertainment 0.46 0.50 0.48 0.52 0.45
Debt to Equity, Industry
Communication Services 0.75 0.75 0.70 0.78 0.82

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity = Total debt ÷ Total Charter shareholders’ equity
= 91,561 ÷ 14,050 = 6.52

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Charter Communications Inc. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Charter Communications Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 2,997 1,008 3,500 3,290 2,045
Long-term debt, less current portion 88,564 81,744 75,578 69,537 68,186
Total debt 91,561 82,752 79,078 72,827 70,231
Operating lease liabilities, current portion 269 235 214
Operating lease liabilities, long-term portion (included within Other long-term liabilities) 1,182 1,110 979
Total debt (including operating lease liability) 93,012 84,097 80,271 72,827 70,231
 
Total Charter shareholders’ equity 14,050 23,805 31,445 36,285 39,084
Solvency Ratio
Debt to equity (including operating lease liability)1 6.62 3.53 2.55 2.01 1.80
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.11 0.13 0.08 0.02 0.03
Comcast Corp. 1.06 1.20 1.29 1.56 0.94
Meta Platforms Inc. 0.12 0.09 0.11 0.00 0.00
Netflix Inc. 1.14 1.67 2.16 1.98 1.81
Walt Disney Co. 0.66 0.75 0.53 0.43 0.62
Debt to Equity (including Operating Lease Liability), Sector
Media & Entertainment 0.53 0.56 0.54 0.52 0.45
Debt to Equity (including Operating Lease Liability), Industry
Communication Services 0.88 0.88 0.81 0.78 0.82

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Charter shareholders’ equity
= 93,012 ÷ 14,050 = 6.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Charter Communications Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Charter Communications Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 2,997 1,008 3,500 3,290 2,045
Long-term debt, less current portion 88,564 81,744 75,578 69,537 68,186
Total debt 91,561 82,752 79,078 72,827 70,231
Total Charter shareholders’ equity 14,050 23,805 31,445 36,285 39,084
Total capital 105,611 106,557 110,523 109,112 109,315
Solvency Ratio
Debt to capital1 0.87 0.78 0.72 0.67 0.64
Benchmarks
Debt to Capital, Competitors2
Alphabet Inc. 0.06 0.06 0.02 0.02 0.03
Comcast Corp. 0.50 0.53 0.55 0.61 0.48
Meta Platforms Inc. 0.00 0.00 0.00 0.00 0.00
Netflix Inc. 0.49 0.60 0.66 0.66 0.64
Walt Disney Co. 0.38 0.41 0.35 0.30 0.38
Debt to Capital, Sector
Media & Entertainment 0.32 0.33 0.33 0.34 0.31
Debt to Capital, Industry
Communication Services 0.43 0.43 0.41 0.44 0.45

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 91,561 ÷ 105,611 = 0.87

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Charter Communications Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Charter Communications Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 2,997 1,008 3,500 3,290 2,045
Long-term debt, less current portion 88,564 81,744 75,578 69,537 68,186
Total debt 91,561 82,752 79,078 72,827 70,231
Operating lease liabilities, current portion 269 235 214
Operating lease liabilities, long-term portion (included within Other long-term liabilities) 1,182 1,110 979
Total debt (including operating lease liability) 93,012 84,097 80,271 72,827 70,231
Total Charter shareholders’ equity 14,050 23,805 31,445 36,285 39,084
Total capital (including operating lease liability) 107,062 107,902 111,716 109,112 109,315
Solvency Ratio
Debt to capital (including operating lease liability)1 0.87 0.78 0.72 0.67 0.64
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.10 0.11 0.07 0.02 0.03
Comcast Corp. 0.52 0.55 0.56 0.61 0.48
Meta Platforms Inc. 0.10 0.08 0.10 0.00 0.00
Netflix Inc. 0.53 0.63 0.68 0.66 0.64
Walt Disney Co. 0.40 0.43 0.35 0.30 0.38
Debt to Capital (including Operating Lease Liability), Sector
Media & Entertainment 0.35 0.36 0.35 0.34 0.31
Debt to Capital (including Operating Lease Liability), Industry
Communication Services 0.47 0.47 0.45 0.44 0.45

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 93,012 ÷ 107,062 = 0.87

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Charter Communications Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Charter Communications Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 2,997 1,008 3,500 3,290 2,045
Long-term debt, less current portion 88,564 81,744 75,578 69,537 68,186
Total debt 91,561 82,752 79,078 72,827 70,231
 
Total assets 142,491 144,206 148,188 146,130 146,623
Solvency Ratio
Debt to assets1 0.64 0.57 0.53 0.50 0.48
Benchmarks
Debt to Assets, Competitors2
Alphabet Inc. 0.04 0.05 0.02 0.02 0.02
Comcast Corp. 0.34 0.38 0.39 0.44 0.35
Meta Platforms Inc. 0.00 0.00 0.00 0.00 0.00
Netflix Inc. 0.35 0.42 0.43 0.40 0.34
Walt Disney Co. 0.27 0.29 0.24 0.21 0.27
Debt to Assets, Sector
Media & Entertainment 0.23 0.24 0.24 0.26 0.23
Debt to Assets, Industry
Communication Services 0.29 0.29 0.28 0.31 0.32

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 91,561 ÷ 142,491 = 0.64

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Charter Communications Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

Charter Communications Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 2,997 1,008 3,500 3,290 2,045
Long-term debt, less current portion 88,564 81,744 75,578 69,537 68,186
Total debt 91,561 82,752 79,078 72,827 70,231
Operating lease liabilities, current portion 269 235 214
Operating lease liabilities, long-term portion (included within Other long-term liabilities) 1,182 1,110 979
Total debt (including operating lease liability) 93,012 84,097 80,271 72,827 70,231
 
Total assets 142,491 144,206 148,188 146,130 146,623
Solvency Ratio
Debt to assets (including operating lease liability)1 0.65 0.58 0.54 0.50 0.48
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.08 0.09 0.06 0.02 0.02
Comcast Corp. 0.37 0.40 0.41 0.44 0.35
Meta Platforms Inc. 0.09 0.07 0.08 0.00 0.00
Netflix Inc. 0.41 0.47 0.48 0.40 0.34
Walt Disney Co. 0.29 0.31 0.24 0.21 0.27
Debt to Assets (including Operating Lease Liability), Sector
Media & Entertainment 0.26 0.27 0.26 0.26 0.23
Debt to Assets (including Operating Lease Liability), Industry
Communication Services 0.35 0.34 0.32 0.31 0.32

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 93,012 ÷ 142,491 = 0.65

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Charter Communications Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

Charter Communications Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Total assets 142,491 144,206 148,188 146,130 146,623
Total Charter shareholders’ equity 14,050 23,805 31,445 36,285 39,084
Solvency Ratio
Financial leverage1 10.14 6.06 4.71 4.03 3.75
Benchmarks
Financial Leverage, Competitors2
Alphabet Inc. 1.43 1.44 1.37 1.31 1.29
Comcast Corp. 2.87 3.03 3.18 3.51 2.72
Meta Platforms Inc. 1.33 1.24 1.32 1.16 1.14
Netflix Inc. 2.81 3.55 4.48 4.96 5.31
Walt Disney Co. 2.30 2.41 2.18 2.02 2.32
Financial Leverage, Sector
Media & Entertainment 2.02 2.03 2.04 2.01 1.92
Financial Leverage, Industry
Communication Services 2.55 2.55 2.51 2.51 2.56

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Financial leverage = Total assets ÷ Total Charter shareholders’ equity
= 142,491 ÷ 14,050 = 10.14

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Charter Communications Inc. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Charter Communications Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income attributable to Charter shareholders 4,654 3,222 1,668 1,230 9,895
Add: Net income attributable to noncontrolling interest 666 454 324 276 220
Add: Income tax expense 1,068 626 439 180 (9,087)
Add: Interest expense, net 4,037 3,848 3,797 3,540 3,090
Earnings before interest and tax (EBIT) 10,425 8,150 6,228 5,226 4,118
Solvency Ratio
Interest coverage1 2.58 2.12 1.64 1.48 1.33
Benchmarks
Interest Coverage, Competitors2
Alphabet Inc. 263.24 357.16 397.25 307.25 250.48
Comcast Corp. 5.46 4.07 4.72 5.30 5.97
Meta Platforms Inc. 3,153.27 2,371.00 1,241.60 2,818.89 3,433.33
Netflix Inc. 8.63 5.17 4.29 3.92 3.04
Walt Disney Co. 2.66 -0.06 12.19 22.60 28.20
Interest Coverage, Sector
Media & Entertainment 16.64 10.19 10.64 12.21 12.14
Interest Coverage, Industry
Communication Services 10.37 5.85 6.91 7.30 6.94

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 10,425 ÷ 4,037 = 2.58

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Charter Communications Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Fixed Charge Coverage

Charter Communications Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income attributable to Charter shareholders 4,654 3,222 1,668 1,230 9,895
Add: Net income attributable to noncontrolling interest 666 454 324 276 220
Add: Income tax expense 1,068 626 439 180 (9,087)
Add: Interest expense, net 4,037 3,848 3,797 3,540 3,090
Earnings before interest and tax (EBIT) 10,425 8,150 6,228 5,226 4,118
Add: Operating lease expenses 463 439 428 382 321
Earnings before fixed charges and tax 10,888 8,589 6,656 5,608 4,439
 
Interest expense, net 4,037 3,848 3,797 3,540 3,090
Operating lease expenses 463 439 428 382 321
Fixed charges 4,500 4,287 4,225 3,922 3,411
Solvency Ratio
Fixed charge coverage1 2.42 2.00 1.58 1.43 1.30
Benchmarks
Fixed Charge Coverage, Competitors2
Alphabet Inc. 25.06 16.92 17.10 25.69 23.49
Comcast Corp. 4.48 3.47 4.00 4.53 4.90
Meta Platforms Inc. 31.41 24.62 22.41 40.75 56.81
Netflix Inc. 5.46 3.65 2.92 3.33 2.55
Walt Disney Co. 2.07 0.32 6.94 10.14 11.03
Fixed Charge Coverage, Sector
Media & Entertainment 10.04 6.57 6.90 8.49 8.40
Fixed Charge Coverage, Industry
Communication Services 5.63 3.58 4.29 4.63 4.35

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 10,888 ÷ 4,500 = 2.42

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Charter Communications Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.