Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Charter Communications Inc., solvency ratios
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data reveals notable trends in the company's leverage and coverage ratios over the five-year period.
- Debt to Equity Ratios
- The debt to equity ratio experienced a significant increase from 3.48 in 2020 to a peak of 10.7 in 2022, indicating a substantial rise in financial leverage relative to shareholders’ equity. Thereafter, it declined to 8.86 in 2023 and further to 6.14 by the end of 2024, suggesting efforts to reduce reliance on debt financing. Including operating lease liabilities, the ratios follow a similar pattern, slightly higher but mirroring the same trend.
- Debt to Capital Ratios
- The debt to capital ratio increased steadily from 0.78 in 2020 to 0.91 in 2022, reflecting a higher proportion of debt within the company’s capital structure. This ratio slightly decreased to 0.90 in 2023 and further to 0.86 in 2024, indicating some deleveraging after a peak period of elevated debt use. Ratios including operating lease liabilities present minimal deviations from these values.
- Debt to Assets Ratios
- The ratio of debt to assets rose from 0.57 in 2020 to 0.68 in 2022, coinciding with increased debt levels relative to the company’s assets. This metric decreased marginally to 0.67 in 2023 and 0.64 in 2024, consistent with overall reduction in leverage. Including lease liabilities slightly increases these values but does not alter the underlying trend.
- Financial Leverage
- Financial leverage, which measures the ratio of total assets to equity, followed a pronounced upward trajectory from 6.06 in 2020 to a high of 15.85 in 2022. It then moderated to 13.28 in 2023 and further to 9.62 in 2024, indicating a substantial increase in asset financing through liabilities before partial deleveraging.
- Interest Coverage Ratios
- Interest coverage displayed moderate fluctuation but remained relatively stable, improving from 2.12 in 2020 to 2.64 in 2022. This figure decreased to 2.32 in 2023 and recovered slightly to 2.43 in 2024, suggesting the company maintained adequate earnings to cover interest expenses despite increased debt levels.
- Fixed Charge Coverage
- Fixed charge coverage ratios saw a steady increase from 2.00 in 2020 to 2.48 in 2022, indicative of enhanced capacity to meet fixed financial obligations. Thereafter, these ratios declined to 2.20 in 2023 and marginally rose to 2.31 in 2024, reflecting stable though somewhat reduced operational earnings relative to fixed costs.
Overall, the data indicates a significant rise in leverage ratios up to 2022, followed by a consistent reduction through 2024. Despite this variability in leverage, coverage ratios suggest the company sustained its ability to meet interest and fixed charges throughout the period.
Debt Ratios
Coverage Ratios
Debt to Equity
Charter Communications Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 758) | 425) | —) | —) | —) | |
| Current portion of long-term debt | 1,799) | 2,000) | 1,510) | 2,997) | 1,008) | |
| Long-term debt, less current portion | 92,134) | 95,777) | 96,093) | 88,564) | 81,744) | |
| Equipment installment plan financing facility | 1,072) | —) | —) | —) | —) | |
| Total debt | 95,763) | 98,202) | 97,603) | 91,561) | 82,752) | |
| Total Charter shareholders’ equity | 15,587) | 11,086) | 9,119) | 14,050) | 23,805) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 6.14 | 8.86 | 10.70 | 6.52 | 3.48 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Alphabet Inc. | 0.05 | 0.05 | 0.06 | 0.06 | 0.07 | |
| Comcast Corp. | 1.16 | 1.17 | 1.17 | 0.99 | 1.15 | |
| Meta Platforms Inc. | 0.16 | 0.12 | 0.08 | 0.00 | 0.00 | |
| Netflix Inc. | 0.63 | 0.71 | 0.69 | 0.97 | 1.47 | |
| Walt Disney Co. | 0.46 | 0.47 | 0.51 | 0.62 | 0.71 | |
| Debt to Equity, Sector | ||||||
| Media & Entertainment | 0.41 | 0.45 | 0.48 | 0.46 | 0.50 | |
| Debt to Equity, Industry | ||||||
| Communication Services | 0.65 | 0.72 | 0.76 | 0.75 | 0.75 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to equity = Total debt ÷ Total Charter shareholders’ equity
= 95,763 ÷ 15,587 = 6.14
2 Click competitor name to see calculations.
- Total debt
- The total debt shows a rising trend from 82,752 million USD in 2020 to a peak of 98,202 million USD in 2023, followed by a slight reduction to 95,763 million USD in 2024. This indicates a general increase in leverage over the period, with some stabilization or modest deleveraging in the latest year.
- Total Charter shareholders’ equity
- Shareholders' equity declined markedly from 23,805 million USD in 2020 to 9,119 million USD in 2022, reflecting a substantial erosion of equity capital. However, from 2023 onwards, equity rebounded to 11,086 million USD, then further increased to 15,587 million USD in 2024, suggesting efforts to strengthen the capital base or improved retained earnings.
- Debt to equity ratio
- The debt to equity ratio exhibits a sharp increase from 3.48 in 2020 to 10.7 in 2022, indicating a significant rise in financial leverage and potentially higher financial risk. Following this peak, the ratio declines to 8.86 in 2023 and further to 6.14 in 2024, denoting a period of deleveraging and improved capital structure stability.
Debt to Equity (including Operating Lease Liability)
Charter Communications Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 758) | 425) | —) | —) | —) | |
| Current portion of long-term debt | 1,799) | 2,000) | 1,510) | 2,997) | 1,008) | |
| Long-term debt, less current portion | 92,134) | 95,777) | 96,093) | 88,564) | 81,744) | |
| Equipment installment plan financing facility | 1,072) | —) | —) | —) | —) | |
| Total debt | 95,763) | 98,202) | 97,603) | 91,561) | 82,752) | |
| Operating lease liabilities, current portion (included within Accounts payable, accrued and other current liabilities) | 278) | 290) | 295) | 269) | 235) | |
| Operating lease liabilities, long-term portion (included within Other long-term liabilities) | 1,135) | 1,128) | 1,083) | 1,182) | 1,110) | |
| Total debt (including operating lease liability) | 97,176) | 99,620) | 98,981) | 93,012) | 84,097) | |
| Total Charter shareholders’ equity | 15,587) | 11,086) | 9,119) | 14,050) | 23,805) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 6.23 | 8.99 | 10.85 | 6.62 | 3.53 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.09 | 0.11 | 0.12 | 0.11 | 0.13 | |
| Comcast Corp. | 1.23 | 1.25 | 1.26 | 1.06 | 1.20 | |
| Meta Platforms Inc. | 0.27 | 0.25 | 0.22 | 0.12 | 0.09 | |
| Netflix Inc. | 0.73 | 0.82 | 0.81 | 1.14 | 1.67 | |
| Walt Disney Co. | 0.49 | 0.51 | 0.55 | 0.66 | 0.75 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.48 | 0.52 | 0.56 | 0.53 | 0.56 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.77 | 0.86 | 0.91 | 0.88 | 0.88 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Charter shareholders’ equity
= 97,176 ÷ 15,587 = 6.23
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt shows a rising trend from 2020 to 2023, increasing from approximately $84.1 billion to almost $99.6 billion. However, in 2024, there is a slight decrease to about $97.2 billion, indicating a potential effort to reduce leverage or manage liabilities more efficiently after years of accumulation.
- Total Charter Shareholders’ Equity
- Shareholders’ equity displays a notable decline from $23.8 billion in 2020 to a low of $9.1 billion in 2022. After reaching this low point, equity figures show a recovery trend, rising to $11.1 billion in 2023 and further to $15.6 billion in 2024. Despite this partial recovery, the equity level in 2024 remains significantly below the 2020 figure, suggesting a period of financial strain followed by gradual improvement.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio experiences substantial fluctuation over the period. It more than doubles from 3.53 in 2020 to a peak of 10.85 in 2022, reflecting increasing leverage primarily due to the simultaneous rise in debt and sharp decline in equity. From 2022 onwards, the ratio begins to decrease, falling to 6.23 in 2024, which aligns with the observed reduction in debt and recovery in equity. This downward trend in leverage suggests improved capital structure management and potentially lower financial risk.
Debt to Capital
Charter Communications Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 758) | 425) | —) | —) | —) | |
| Current portion of long-term debt | 1,799) | 2,000) | 1,510) | 2,997) | 1,008) | |
| Long-term debt, less current portion | 92,134) | 95,777) | 96,093) | 88,564) | 81,744) | |
| Equipment installment plan financing facility | 1,072) | —) | —) | —) | —) | |
| Total debt | 95,763) | 98,202) | 97,603) | 91,561) | 82,752) | |
| Total Charter shareholders’ equity | 15,587) | 11,086) | 9,119) | 14,050) | 23,805) | |
| Total capital | 111,350) | 109,288) | 106,722) | 105,611) | 106,557) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.86 | 0.90 | 0.91 | 0.87 | 0.78 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Alphabet Inc. | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | |
| Comcast Corp. | 0.54 | 0.54 | 0.54 | 0.50 | 0.53 | |
| Meta Platforms Inc. | 0.14 | 0.11 | 0.08 | 0.00 | 0.00 | |
| Netflix Inc. | 0.39 | 0.41 | 0.41 | 0.49 | 0.60 | |
| Walt Disney Co. | 0.31 | 0.32 | 0.34 | 0.38 | 0.41 | |
| Debt to Capital, Sector | ||||||
| Media & Entertainment | 0.29 | 0.31 | 0.32 | 0.32 | 0.33 | |
| Debt to Capital, Industry | ||||||
| Communication Services | 0.39 | 0.42 | 0.43 | 0.43 | 0.43 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 95,763 ÷ 111,350 = 0.86
2 Click competitor name to see calculations.
- Total Debt
-
The total debt exhibited an increasing trend from 82,752 million US dollars in 2020 to a peak of 98,202 million US dollars in 2023. Following this peak, there was a slight decrease to 95,763 million US dollars in 2024. Overall, the total debt increased by approximately 15.7% over the five-year period.
- Total Capital
-
Total capital remained relatively stable with minor fluctuations across the years. It started at 106,557 million US dollars in 2020, dipped slightly to 105,611 million in 2021, then gradually increased to 111,350 million by 2024. This represents an overall increase of about 4.5% over the period analyzed.
- Debt to Capital Ratio
-
The debt to capital ratio showed a rising trend from 0.78 in 2020 to a high of 0.91 in 2022, indicating an increasing proportion of debt within the company’s capital structure. After reaching this peak, the ratio decreased slightly to 0.86 by 2024, suggesting a modest reduction in leverage, although still significantly higher than the initial 2020 level.
- Summary
-
Overall, the data indicates an increasing reliance on debt financing over the period, as demonstrated by the rise in total debt and the debt to capital ratio through 2022, with a slight deleveraging trend thereafter. Total capital remained comparatively stable but showed a modest upward trend in more recent years. The shift in leverage metrics may reflect strategic financial management decisions or changing market conditions impacting the capital structure.
Debt to Capital (including Operating Lease Liability)
Charter Communications Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 758) | 425) | —) | —) | —) | |
| Current portion of long-term debt | 1,799) | 2,000) | 1,510) | 2,997) | 1,008) | |
| Long-term debt, less current portion | 92,134) | 95,777) | 96,093) | 88,564) | 81,744) | |
| Equipment installment plan financing facility | 1,072) | —) | —) | —) | —) | |
| Total debt | 95,763) | 98,202) | 97,603) | 91,561) | 82,752) | |
| Operating lease liabilities, current portion (included within Accounts payable, accrued and other current liabilities) | 278) | 290) | 295) | 269) | 235) | |
| Operating lease liabilities, long-term portion (included within Other long-term liabilities) | 1,135) | 1,128) | 1,083) | 1,182) | 1,110) | |
| Total debt (including operating lease liability) | 97,176) | 99,620) | 98,981) | 93,012) | 84,097) | |
| Total Charter shareholders’ equity | 15,587) | 11,086) | 9,119) | 14,050) | 23,805) | |
| Total capital (including operating lease liability) | 112,763) | 110,706) | 108,100) | 107,062) | 107,902) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.86 | 0.90 | 0.92 | 0.87 | 0.78 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | |
| Comcast Corp. | 0.55 | 0.56 | 0.56 | 0.52 | 0.55 | |
| Meta Platforms Inc. | 0.21 | 0.20 | 0.18 | 0.10 | 0.08 | |
| Netflix Inc. | 0.42 | 0.45 | 0.45 | 0.53 | 0.63 | |
| Walt Disney Co. | 0.33 | 0.34 | 0.35 | 0.40 | 0.43 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.32 | 0.34 | 0.36 | 0.35 | 0.36 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.44 | 0.46 | 0.48 | 0.47 | 0.47 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 97,176 ÷ 112,763 = 0.86
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt exhibited a rising trend from 2020 through 2023, starting at $84,097 million and peaking at $99,620 million in 2023. In 2024, there was a slight decrease to $97,176 million, indicating a modest reduction in debt obligations after consecutive annual increases.
- Total Capital (including operating lease liability)
- Total capital showed a generally upward trajectory over the five-year period, increasing from $107,902 million in 2020 to $112,763 million in 2024. This steady growth suggests an expansion of overall capital base, with minor fluctuations but consistent progress.
- Debt to Capital Ratio (including operating lease liability)
- The debt-to-capital ratio rose significantly from 0.78 in 2020 to a peak of 0.92 in 2022, indicating an increasing proportion of debt relative to total capital during this period. Following this peak, the ratio declined to 0.90 in 2023 and further to 0.86 in 2024, reflecting a gradual improvement in the company’s capital structure with a lower reliance on debt financing.
Debt to Assets
Charter Communications Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 758) | 425) | —) | —) | —) | |
| Current portion of long-term debt | 1,799) | 2,000) | 1,510) | 2,997) | 1,008) | |
| Long-term debt, less current portion | 92,134) | 95,777) | 96,093) | 88,564) | 81,744) | |
| Equipment installment plan financing facility | 1,072) | —) | —) | —) | —) | |
| Total debt | 95,763) | 98,202) | 97,603) | 91,561) | 82,752) | |
| Total assets | 150,020) | 147,193) | 144,523) | 142,491) | 144,206) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.64 | 0.67 | 0.68 | 0.64 | 0.57 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Alphabet Inc. | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | |
| Comcast Corp. | 0.37 | 0.37 | 0.37 | 0.34 | 0.38 | |
| Meta Platforms Inc. | 0.11 | 0.08 | 0.06 | 0.00 | 0.00 | |
| Netflix Inc. | 0.29 | 0.30 | 0.30 | 0.35 | 0.42 | |
| Walt Disney Co. | 0.23 | 0.23 | 0.24 | 0.27 | 0.29 | |
| Debt to Assets, Sector | ||||||
| Media & Entertainment | 0.22 | 0.22 | 0.23 | 0.23 | 0.24 | |
| Debt to Assets, Industry | ||||||
| Communication Services | 0.27 | 0.29 | 0.29 | 0.29 | 0.29 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 95,763 ÷ 150,020 = 0.64
2 Click competitor name to see calculations.
- Total Debt
- The total debt has shown a generally increasing trend from 82,752 million USD in 2020 to a peak of 98,202 million USD in 2023, followed by a slight decrease to 95,763 million USD in 2024. This indicates ongoing borrowing activity, with a small reduction in the latest period.
- Total Assets
- Total assets experienced slight fluctuations but overall increased over the period. Starting at 144,206 million USD in 2020, there was a minor dip in 2021 to 142,491 million USD, after which assets grew steadily to reach 150,020 million USD by the end of 2024.
- Debt to Assets Ratio
- The debt to assets ratio rose from 0.57 in 2020 to a peak of 0.68 in 2022, indicating that debt was growing faster than assets during this timeframe. Following this peak, the ratio decreased to 0.64 by 2024, reflecting a relative improvement in the company's capital structure, with assets increasing at a higher pace or debt reducing moderately.
Debt to Assets (including Operating Lease Liability)
Charter Communications Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 758) | 425) | —) | —) | —) | |
| Current portion of long-term debt | 1,799) | 2,000) | 1,510) | 2,997) | 1,008) | |
| Long-term debt, less current portion | 92,134) | 95,777) | 96,093) | 88,564) | 81,744) | |
| Equipment installment plan financing facility | 1,072) | —) | —) | —) | —) | |
| Total debt | 95,763) | 98,202) | 97,603) | 91,561) | 82,752) | |
| Operating lease liabilities, current portion (included within Accounts payable, accrued and other current liabilities) | 278) | 290) | 295) | 269) | 235) | |
| Operating lease liabilities, long-term portion (included within Other long-term liabilities) | 1,135) | 1,128) | 1,083) | 1,182) | 1,110) | |
| Total debt (including operating lease liability) | 97,176) | 99,620) | 98,981) | 93,012) | 84,097) | |
| Total assets | 150,020) | 147,193) | 144,523) | 142,491) | 144,206) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.65 | 0.68 | 0.68 | 0.65 | 0.58 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | |
| Comcast Corp. | 0.40 | 0.39 | 0.39 | 0.37 | 0.40 | |
| Meta Platforms Inc. | 0.18 | 0.17 | 0.15 | 0.09 | 0.07 | |
| Netflix Inc. | 0.34 | 0.35 | 0.35 | 0.41 | 0.47 | |
| Walt Disney Co. | 0.25 | 0.25 | 0.26 | 0.29 | 0.31 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.25 | 0.26 | 0.27 | 0.26 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.32 | 0.34 | 0.35 | 0.35 | 0.34 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 97,176 ÷ 150,020 = 0.65
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt increased steadily from US$84,097 million at the end of 2020 to a peak of US$99,620 million in 2023. However, in 2024, there was a slight decline to US$97,176 million, suggesting a modest repayment or reduction in borrowing after several years of accumulation.
- Total assets
- Total assets showed modest growth over the observed period. Starting at US$144,206 million at the end of 2020, the assets fluctuated slightly but generally increased to reach US$150,020 million by the end of 2024. This indicates a gradual expansion of the company’s asset base.
- Debt to assets ratio (including operating lease liability)
- The debt to assets ratio increased from 0.58 in 2020 to a high of 0.68 in 2022 and 2023, reflecting a rising leverage position. This ratio slightly decreased to 0.65 in 2024, indicating a marginal improvement in the company's capital structure, consistent with the reduction in total debt observed in the same year. Overall, the company maintained a relatively high leverage ratio throughout the period, with a small improvement toward the end.
Financial Leverage
Charter Communications Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 150,020) | 147,193) | 144,523) | 142,491) | 144,206) | |
| Total Charter shareholders’ equity | 15,587) | 11,086) | 9,119) | 14,050) | 23,805) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 9.62 | 13.28 | 15.85 | 10.14 | 6.06 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Alphabet Inc. | 1.39 | 1.42 | 1.43 | 1.43 | 1.44 | |
| Comcast Corp. | 3.11 | 3.20 | 3.18 | 2.87 | 3.03 | |
| Meta Platforms Inc. | 1.51 | 1.50 | 1.48 | 1.33 | 1.24 | |
| Netflix Inc. | 2.17 | 2.37 | 2.34 | 2.81 | 3.55 | |
| Walt Disney Co. | 1.95 | 2.07 | 2.14 | 2.30 | 2.41 | |
| Financial Leverage, Sector | ||||||
| Media & Entertainment | 1.90 | 2.00 | 2.05 | 2.02 | 2.03 | |
| Financial Leverage, Industry | ||||||
| Communication Services | 2.38 | 2.52 | 2.60 | 2.55 | 2.55 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Financial leverage = Total assets ÷ Total Charter shareholders’ equity
= 150,020 ÷ 15,587 = 9.62
2 Click competitor name to see calculations.
- Total assets
- The total assets display a consistent but moderate upward trend over the five-year period. From US$144,206 million in 2020, assets marginally decreased in 2021 to US$142,491 million but then steadily increased each subsequent year, reaching US$150,020 million in 2024. This reflects a general expansion in the asset base.
- Total Charter shareholders’ equity
- Shareholders' equity exhibits a notable decline from 2020 to 2022, falling from US$23,805 million to US$9,119 million, indicating significant erosion in net equity during this period. However, equity rebounded in 2023 and further improved in 2024, rising to US$15,587 million. Despite this recovery, the equity levels in 2024 remain below those at the start of the period.
- Financial leverage
- The financial leverage ratio increased markedly from 6.06 in 2020 to a peak of 15.85 in 2022, suggesting a substantial increase in the use of debt relative to equity during these years. After 2022, the leverage ratio declined to 13.28 in 2023 and further to 9.62 in 2024, indicating a strategic reduction in leverage or improvement in equity relative to debt.
Interest Coverage
Charter Communications Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Charter shareholders | 5,083) | 4,557) | 5,055) | 4,654) | 3,222) | |
| Add: Net income attributable to noncontrolling interest | 770) | 704) | 794) | 666) | 454) | |
| Add: Income tax expense | 1,649) | 1,593) | 1,613) | 1,068) | 626) | |
| Add: Interest expense, net | 5,229) | 5,188) | 4,556) | 4,037) | 3,848) | |
| Earnings before interest and tax (EBIT) | 12,731) | 12,042) | 12,018) | 10,425) | 8,150) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 2.43 | 2.32 | 2.64 | 2.58 | 2.12 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Alphabet Inc. | 448.07 | 279.30 | 200.80 | 263.24 | 357.16 | |
| Comcast Corp. | 5.52 | 6.01 | 3.38 | 5.46 | 4.07 | |
| Meta Platforms Inc. | 99.83 | 107.34 | 164.74 | 3,153.27 | 2,371.00 | |
| Netflix Inc. | 14.87 | 9.87 | 8.45 | 8.63 | 5.17 | |
| Walt Disney Co. | 4.66 | 3.42 | 4.41 | 2.66 | -0.06 | |
| Interest Coverage, Sector | ||||||
| Media & Entertainment | 18.83 | 14.50 | 12.34 | 16.64 | 10.19 | |
| Interest Coverage, Industry | ||||||
| Communication Services | 10.63 | 8.76 | 7.40 | 10.38 | 5.86 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 12,731 ÷ 5,229 = 2.43
2 Click competitor name to see calculations.
The financial data reflects the company's operating performance and interest obligations over a five-year period. There is a discernible upward trend in earnings before interest and tax (EBIT), indicating gradual improvement in operating profitability. EBIT increased from 8,150 million US dollars in 2020 to 12,731 million US dollars in 2024. This growth suggests enhanced operational efficiency or increased revenue generation capacity.
However, the net interest expense also shows a rising pattern, growing from 3,848 million US dollars in 2020 to 5,229 million US dollars in 2024. This increase in interest expense may indicate higher debt levels or increased borrowing costs, which could impose additional financial burden on the company.
The interest coverage ratio, which measures the company's ability to meet interest payments with EBIT, exhibits some fluctuations but generally remains above 2.0. Starting at 2.12 in 2020, it rose to a peak of 2.64 in 2022, suggesting improved ability to cover interest expenses during this period. However, there is a decline to 2.32 in 2023 followed by a slight recovery to 2.43 in 2024. Although the coverage ratio remains above 2.0, the dip indicates moderately increased financial risk or pressure related to meeting interest obligations in the most recent years despite EBIT growth.
- Summary of Trends
- - Steady increase in EBIT over the five-year period, reflecting improving operational performance.
- - Interest expense rising consistently, potentially reflecting greater leverage or higher cost of debt.
- - Interest coverage ratio indicates overall satisfactory capacity to cover interest payments, but with some recent weakening, highlighting a potential concern regarding financial risk management.
Fixed Charge Coverage
Charter Communications Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Charter shareholders | 5,083) | 4,557) | 5,055) | 4,654) | 3,222) | |
| Add: Net income attributable to noncontrolling interest | 770) | 704) | 794) | 666) | 454) | |
| Add: Income tax expense | 1,649) | 1,593) | 1,613) | 1,068) | 626) | |
| Add: Interest expense, net | 5,229) | 5,188) | 4,556) | 4,037) | 3,848) | |
| Earnings before interest and tax (EBIT) | 12,731) | 12,042) | 12,018) | 10,425) | 8,150) | |
| Add: Operating lease expenses | 516) | 506) | 482) | 463) | 439) | |
| Earnings before fixed charges and tax | 13,247) | 12,548) | 12,500) | 10,888) | 8,589) | |
| Interest expense, net | 5,229) | 5,188) | 4,556) | 4,037) | 3,848) | |
| Operating lease expenses | 516) | 506) | 482) | 463) | 439) | |
| Fixed charges | 5,745) | 5,694) | 5,038) | 4,500) | 4,287) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.31 | 2.20 | 2.48 | 2.42 | 2.00 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Alphabet Inc. | 34.54 | 24.36 | 22.90 | 30.80 | 21.02 | |
| Comcast Corp. | 4.50 | 4.87 | 2.82 | 4.48 | 3.47 | |
| Meta Platforms Inc. | 23.99 | 19.69 | 15.18 | 31.41 | 24.62 | |
| Netflix Inc. | 8.20 | 5.64 | 5.00 | 5.46 | 3.65 | |
| Walt Disney Co. | 3.53 | 2.71 | 3.25 | 2.07 | 0.32 | |
| Fixed Charge Coverage, Sector | ||||||
| Media & Entertainment | 11.59 | 9.04 | 7.68 | 10.40 | 6.76 | |
| Fixed Charge Coverage, Industry | ||||||
| Communication Services | 6.21 | 5.12 | 4.13 | 5.70 | 3.61 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 13,247 ÷ 5,745 = 2.31
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax showed a consistent upward trend over the five-year period. Starting at 8,589 million US dollars in 2020, this figure increased significantly in 2021 to 10,888 million US dollars. The growth continued through 2022 and 2023, reaching 12,500 million and 12,548 million US dollars respectively. By the end of 2024, earnings climbed further to 13,247 million US dollars, indicating sustained positive performance in pre-fixed charge earnings.
- Fixed charges
- Fixed charges also exhibited an upward trend across the same timeframe. Beginning at 4,287 million US dollars in 2020, fixed charges increased moderately to 4,500 million US dollars in 2021. This upward trajectory continued with 5,038 million US dollars in 2022. There was a marked increase in 2023, reaching 5,694 million US dollars, followed by a slight rise to 5,745 million US dollars in 2024. The data suggests increasing financial obligations related to fixed charges over the years.
- Fixed charge coverage ratio
- The fixed charge coverage ratio, reflecting the ability to cover fixed charges with earnings before fixed charges and tax, showed some variability. It improved substantially from a ratio of 2 in 2020 to 2.42 in 2021, then experienced a modest increase to 2.48 in 2022. However, the ratio declined to 2.2 in 2023, before partially recovering to 2.31 in 2024. The trend indicates some fluctuation in coverage capacity, with a peak in 2022 followed by a decrease and slight stabilization.
- Overall insights
- Over the five-year period, earnings before fixed charges and tax consistently increased, reflecting positive operational performance. Fixed charges also rose steadily, indicating higher financial fixed costs or obligations. The fixed charge coverage ratio fluctuated but remained above 2, suggesting the company maintained an adequate ability to meet its fixed charges despite the increasing costs. The decrease in the coverage ratio in 2023 could imply slightly elevated risk or pressure on earnings relative to fixed charges during that year, though the partial recovery in 2024 suggests some stabilization.