Charter Communications Inc. (NASDAQ:CHTR)

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows an initial upward trend from 1.40 in the first reported quarter to a peak of approximately 1.54 in the third quarter of 2022. Following this peak, a gradual decline is observed through to the last reported period, falling to around 1.25. This pattern suggests an improvement in the efficiency of using fixed assets to generate sales up to late 2022, after which there is a slight reduction in asset utilization efficiency in subsequent periods.

Total Asset Turnover

The total asset turnover ratio exhibits a steady incremental increase from 0.33 to about 0.38 over the periods from early 2020 through mid-2023. After reaching this plateau, the ratio stabilizes, fluctuating minimally around 0.37 to 0.38 before marginally decreasing to 0.36 in the last period. This indicates a consistent but modest improvement in the company's overall asset utilization efficiency, with stabilization occurring in the most recent quarters.

Equity Turnover

The equity turnover ratio demonstrates a pronounced upward trend from 2.02 to a peak at 6.03 by the fourth quarter of 2021. Subsequently, a noticeable decline takes place, descending steadily to approximately 3.41 by the third quarter of 2025. This trajectory indicates a significant increase in the company's ability to generate revenue from shareholder equity up to late 2021, followed by a substantial decrease over the following years. The decline suggests changes in either equity structure or revenue generation efficiency relative to equity that warrant further examination.

Revenue Trends

Revenues have shown a general upward trend from the first quarter of 2020 through mid-2025. Starting at approximately $11.7 billion in March 2020, they experienced minor fluctuations but steadily increased to peak near $13.9 billion by June 2025. Notably, revenues showed incremental increases each quarter with some periods of stabilization, reflecting steady growth in the company's top-line performance.

Property, Plant and Equipment (Net)

The net value of property, plant, and equipment has exhibited consistent growth over the observed timeline. Beginning around $34.1 billion in early 2020, the net investment increased gradually to reach approximately $44.2 billion by mid-2025. This reflects ongoing capital expenditures or asset acquisitions that contribute to the expansion or maintenance of operational capacity.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, indicative of how effectively the company utilizes its fixed assets to generate revenues, displayed a decreasing trend over the period assessed. Starting near 1.4 in late 2020, the ratio rose slightly to around 1.54 in 2022, suggesting improved asset efficiency during that time, but then steadily declined afterward, falling to approximately 1.25 by mid-2025. This decline may indicate that revenue growth is not keeping pace proportionally with the increase in fixed asset investment, implying reduced efficiency in asset utilization.

Combined Insights

The data reveal that while both revenues and fixed assets have increased, the efficiency with which assets are employed to generate revenue has diminished in recent years. The steady rise in property, plant, and equipment suggests ongoing investments in infrastructure or capacity, but the decreasing asset turnover ratio signals that such investments are yielding relatively less revenue per dollar of fixed assets over time. This divergence suggests a need to evaluate asset deployment strategies to enhance operational efficiency in asset utilization.

The analyzed financial data reveals several important trends over the reported periods.

Revenues

Revenues exhibit a generally stable and gradually increasing pattern from March 2020 through June 2025. Early in the period, revenues fluctuate slightly around the 11,700 to 13,200 million US dollars range, consistently increasing over time to reach peaks close to 13,900 million US dollars in the later quarters. Although some quarterly variations occur, the overall trajectory demonstrates steady growth, with no significant revenue declines observed across the entire timeline.

Total Assets

Total assets remain relatively stable throughout the timeline, beginning around 146,552 million US dollars in March 2020 and showing minor fluctuations over the subsequent quarters. There is a slight downward trend initially, dipping towards approximately 142,495 million US dollars by late 2021, followed by a gradual recovery and a moderate upward movement, ultimately reaching approximately 151,589 million US dollars by June 2025. This indicates consistent asset base management with a modest expansion towards the end of the period.

Total Asset Turnover

The total asset turnover ratio, available only from the third quarter of 2020 onward, demonstrates a gradual improvement. Starting at 0.33, it rises steadily to around 0.37–0.38 during most quarters in 2022 and 2023, then stabilizes near 0.36–0.37 through the later periods. This suggests an enhancement in the efficiency with which assets are used to generate revenues, reflecting improved operational performance over time.

The analysis of the quarterly financial data reveals several noteworthy trends across revenues, shareholders’ equity, and equity turnover ratios over the observed periods.

Revenues

Revenues exhibit a general upward trend from the beginning to the end of the timeline. Initially, revenues fluctuate slightly around the 11,700 to 12,600 million US$ range between March 2020 and December 2020. From early 2021 onward, growth becomes more consistent, reaching a peak of approximately 13,926 million US$ by June 2025. Periodic minor variations occur but overall revenue remains on a moderate growth trajectory.

Total Charter shareholders’ equity

Shareholders’ equity shows a pronounced decline from March 2020 through mid-2022, dropping from about 29,628 million US$ to a low near 8,889 million US$. This decline is sharp and consistent, reflecting possible factors such as net losses, distributions, or share repurchases during this period. However, starting around June 2022, equity reverses its downward trend and begins to recover, progressively rising to about 16,209 million US$ by June 2025, indicating an improvement in financial position or retained earnings accumulation in the latter periods.

Equity turnover

Equity turnover ratios are only available from September 2020 onwards. The metric initially rises steadily from approximately 2.02 in late 2020 to a peak exceeding 6.0 towards the end of 2022. Following this peak, the ratio declines fairly consistently through to mid-2025, settling between 3.3 and 4.9. This pattern may suggest initially increasing operational efficiency or revenue generation relative to equity, followed by a moderation potentially linked to the recovery in equity levels or changes in business dynamics.

In summary, the revenues demonstrate stable growth, while shareholders’ equity undergoes a significant decline followed by recovery. The equity turnover ratio reflects these shifts by increasing as equity diminishes, then decreasing as equity recovers, thereby highlighting the interrelationship between asset base and revenue generation capacity over the analyzed periods.