Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Debt to Equity since 2010
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Long-term Activity Ratios (Summary)
Charter Communications Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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 analysis of the financial ratios over the five-year period reveals several notable trends concerning asset utilization and turnover efficiency.
- Net Fixed Asset Turnover
- This ratio shows an initial increase from 1.4 in 2020 to a peak of 1.51 in 2021, indicating improved efficiency in generating sales from fixed assets. However, from 2022 onwards, there is a gradual decline, reaching 1.28 by the end of 2024. This suggests a decreasing ability to leverage fixed assets effectively over the latter years.
- Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
- When accounting for operating leases and right-of-use assets, the turnover ratio follows a similar trend as the net fixed asset turnover. It rises from 1.35 in 2020 to 1.45 in 2021 and 2022, then declines to 1.25 by 2024, indicating a consistent pattern of decreasing efficiency with respect to these broader asset bases in the last few years.
- Total Asset Turnover
- The total asset turnover ratio shows a steady, albeit slight, increase from 0.33 in 2020 to 0.37 by 2022, and then remains stable at 0.37 through 2024. This stability suggests consistent overall asset utilization in driving revenue despite fluctuations in fixed asset turnover.
- Equity Turnover
- Equity turnover exhibits significant volatility. Starting at 2.02 in 2020, it more than doubles to 3.68 in 2021 and dramatically peaks at 5.92 in 2022. Subsequently, there is a notable decline to 4.93 in 2023 and further down to 3.53 in 2024. This pattern may reflect substantial changes in equity levels or sales dynamics affecting the rate at which equity is turned over during the period.
Overall, the data indicate that while the company maintained stable total asset turnover, its efficiency in using fixed assets has diminished since 2021. The volatility in equity turnover suggests possible shifts in capital structure or operational performance that warrant further investigation. The decline in asset turnover ratios after 2021 could imply challenges in sustaining growth or operational efficiency in fixed assets and equity deployment.
Net Fixed Asset Turnover
Charter Communications Inc., net fixed asset turnover 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) | ||||||
| Revenues | ||||||
| Property, plant and equipment, net of accumulated depreciation | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net of accumulated depreciation
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- Revenues have exhibited a steady increase over the five-year period. Starting at approximately $48.1 billion in 2020, revenues grew each year, reaching $55.1 billion by the end of 2024. The growth rate appears to have slowed slightly after 2022, but revenues still showed positive incremental gains annually.
- Property, Plant, and Equipment (PP&E), Net
- The net value of property, plant, and equipment has consistently increased from $34.36 billion in 2020 to $42.91 billion in 2024. This suggests ongoing investment and asset accumulation, with the largest annual increases occurring in the last two years, indicating accelerated capital expenditure or asset enhancement in the recent period.
- Net Fixed Asset Turnover
- The ratio of net fixed asset turnover, which measures how efficiently the company utilizes its fixed assets to generate revenue, showed a modest increase from 1.40 in 2020 to a peak of 1.51 in 2021. Thereafter, the ratio experienced a gradual decline each year, dropping to 1.28 by 2024. This decline in asset turnover despite rising revenues and increasing net PP&E may indicate that asset growth outpaces revenue growth, resulting in relatively lower efficiency in asset utilization over time.
- Overall Insights
- The company’s financial data reflects revenue growth accompanied by significant investments in property, plant, and equipment. However, the decreasing trend in net fixed asset turnover suggests that while asset base expansion supports revenue, the incremental efficiency of asset use has diminished. The company may be in a phase of capacity expansion or modernization, which could result in reduced immediate asset turnover but potentially set a foundation for future growth.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Charter Communications Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property, plant and equipment, net of accumulated depreciation | ||||||
| Operating lease right-of-use assets (included within Other noncurrent assets) | ||||||
| Property, plant and equipment, net of accumulated depreciation (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net of accumulated depreciation (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues showed a consistent upward trend from 2020 to 2024, increasing from 48,097 million US dollars in 2020 to 55,085 million US dollars in 2024. The growth was steady each year, with the annual increment becoming smaller towards the later years, indicating a slowing growth rate.
- Property, Plant and Equipment (net of accumulated depreciation, including operating lease, right-of-use asset)
- This asset category exhibited continuous growth across the five-year period, rising from 35,571 million US dollars in 2020 to 44,157 million US dollars in 2024. The increase was particularly notable in the latter years, with a marked acceleration from 2022 onwards, suggesting substantial capital investment or asset acquisitions during the most recent years.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio increased from 1.35 in 2020 to 1.45 in 2021 and remained stable through 2022. However, it then declined in 2023 and further decreased in 2024 to 1.25. This pattern indicates that although the company initially managed to increase the efficiency of generating revenue from its fixed assets, there was a reduction in asset productivity in the last two years, potentially due to the rapid growth in fixed assets outpacing revenue growth.
Total Asset Turnover
Charter Communications Inc., total asset turnover 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) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenues have shown a consistent upward trend from 2020 through 2024. Starting at approximately US$48.1 billion in 2020, revenues increased steadily each year, reaching approximately US$55.1 billion in 2024. The year-over-year growth rate appears to slow slightly in the later years but remains positive, indicating ongoing expansion in top-line performance.
- Total Assets
- Total assets have exhibited a generally stable to moderately increasing trend over the five-year period. Beginning at approximately US$144.2 billion in 2020, there was a slight decline in 2021 to approximately US$142.5 billion, followed by progressive growth in subsequent years, culminating at about US$150.0 billion in 2024. This indicates moderate asset growth supporting operational needs or investments.
- Total Asset Turnover
- The total asset turnover ratio has improved from 0.33 in 2020 to 0.37 by 2022, after which it remains steady through 2024. The initial increase suggests improved efficiency in generating revenue from assets. The plateau in recent years implies stable utilization of the asset base relative to revenue generation.
- Overall Insights
- The company demonstrated steady revenue growth alongside a stable increase in total assets, reflecting expansion while managing asset growth carefully. The improving and then stable asset turnover ratio indicates the company has enhanced and then maintained its efficiency in using assets to generate sales. Together, these trends suggest balanced growth with effective asset management practices over the analyzed period.
Equity Turnover
Charter Communications Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total Charter shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| Equity Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
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
Equity turnover = Revenues ÷ Total Charter shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibit a consistent upward trend across the reported periods, increasing from $48,097 million in 2020 to $55,085 million in 2024. Growth appears steady each year, with the most notable increments occurring between 2020 and 2022, followed by more moderate increases through 2023 and 2024.
- Total Charter shareholders’ equity
- Total shareholders’ equity shows a declining trajectory initially, falling sharply from $23,805 million in 2020 to $9,119 million in 2022. However, from 2022 onwards, equity improves, rising to $11,086 million in 2023 and further to $15,587 million in 2024. Despite this recovery, the equity level in 2024 remains significantly lower than the 2020 figure.
- Equity turnover
- Equity turnover ratio indicates variability over the years. Starting at 2.02 in 2020, it increases substantially to a peak of 5.92 in 2022, suggesting higher efficiency in utilizing equity to generate revenues during that year. After 2022, this ratio declines to 4.93 in 2023 and further to 3.53 in 2024, implying a reduction in efficiency relative to the peak, but still higher than the initial 2020 level.
- Overall insights
- Revenue growth is steady and positive, reflecting consistent business expansion or increased sales. The sharp initial decline in shareholders’ equity followed by a partial recovery suggests that the company might have faced financial challenges or made significant adjustments impacting equity, but efforts or market conditions have subsequently led to improvement. The equity turnover ratio’s fluctuations correspond with changes in equity and revenue, showing maximized turnover during the period of lowest equity. This behavior may indicate operational efficiency pressures or strategic financial management aiming to maintain revenue generation despite equity constraints.