Microsoft Excel LibreOffice Calc

Charter Communications Inc. (NASDAQ:CHTR)


Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

Charter Communications Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin 36.14% 36.15% 36.17% 35.68% 34.12%
Operating profit margin 14.23% 11.97% 9.87% 8.47% 11.42%
Net profit margin 3.64% 2.82% 23.80% 12.14% -2.78%
Return on Investment
Return on equity (ROE) 5.30% 3.39% 25.32% 8.77%
Return on assets (ROA) 1.13% 0.84% 6.75% 2.36% -0.69%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Charter Communications Inc.’s gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Charter Communications Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Charter Communications Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Charter Communications Inc.’s ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. Charter Communications Inc.’s ROA deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Gross Profit Margin

Charter Communications Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Gross profit 16,540  15,774  15,040  10,348  3,328 
Revenues 45,764  43,634  41,581  29,003  9,754 
Profitability Ratio
Gross profit margin1 36.14% 36.15% 36.17% 35.68% 34.12%
Benchmarks
Gross Profit Margin, Competitors2
Comcast Corp. 68.39% 68.58% 69.97% 69.57% 69.74%
Netflix Inc. 38.28% 36.89% 34.49% 31.72% 32.27%
Walt Disney Co. 39.60% 44.94% 45.04% 46.09% 45.94%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 16,540 ÷ 45,764 = 36.14%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Charter Communications Inc.’s gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Operating Profit Margin

Charter Communications Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Income from operations 6,511  5,221  4,106  2,456  1,114 
Revenues 45,764  43,634  41,581  29,003  9,754 
Profitability Ratio
Operating profit margin1 14.23% 11.97% 9.87% 8.47% 11.42%
Benchmarks
Operating Profit Margin, Competitors2
Comcast Corp. 19.39% 20.11% 21.28% 20.97% 21.47%
Netflix Inc. 12.92% 10.16% 7.17% 4.30% 4.51%
Walt Disney Co. 15.33% 24.91% 24.98% 25.53% 25.10%
Operating Profit Margin, Sector
Media 16.74% 19.05% 19.03% 19.50% 21.31%
Operating Profit Margin, Industry
Consumer Services 7.54% 7.84% 8.09% 8.15% 8.25%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 6,511 ÷ 45,764 = 14.23%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Charter Communications Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

Charter Communications Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Charter shareholders 1,668  1,230  9,895  3,522  (271)
Revenues 45,764  43,634  41,581  29,003  9,754 
Profitability Ratio
Net profit margin1 3.64% 2.82% 23.80% 12.14% -2.78%
Benchmarks
Net Profit Margin, Competitors2
Comcast Corp. 11.99% 12.41% 26.87% 10.81% 10.96%
Netflix Inc. 9.26% 7.67% 4.78% 2.11% 1.81%
Walt Disney Co. 15.89% 21.20% 16.29% 16.88% 15.98%
Net Profit Margin, Sector
Media 11.31% 12.55% 21.85% 12.54% 11.43%
Net Profit Margin, Industry
Consumer Services 4.88% 5.00% 6.16% 5.00% 4.64%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Net profit margin = 100 × Net income (loss) attributable to Charter shareholders ÷ Revenues
= 100 × 1,668 ÷ 45,764 = 3.64%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Charter Communications Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Return on Equity (ROE)

Charter Communications Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Charter shareholders 1,668  1,230  9,895  3,522  (271)
Total Charter shareholders’ equity (deficit) 31,445  36,285  39,084  40,139  (46)
Profitability Ratio
ROE1 5.30% 3.39% 25.32% 8.77%
Benchmarks
ROE, Competitors2
Comcast Corp. 15.78% 16.38% 33.11% 16.12% 15.62%
Netflix Inc. 24.62% 23.12% 15.60% 6.97% 5.52%
Walt Disney Co. 12.44% 25.83% 21.74% 21.71% 18.83%
ROE, Sector
Media 13.13% 16.53% 27.62% 15.56% 16.57%
ROE, Industry
Consumer Services 20.82% 21.50% 26.52% 20.70% 19.97%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

1 2019 Calculation
ROE = 100 × Net income (loss) attributable to Charter shareholders ÷ Total Charter shareholders’ equity (deficit)
= 100 × 1,668 ÷ 31,445 = 5.30%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Charter Communications Inc.’s ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Return on Assets (ROA)

Charter Communications Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Charter shareholders 1,668  1,230  9,895  3,522  (271)
Total assets 148,188  146,130  146,623  149,067  39,316 
Profitability Ratio
ROA1 1.13% 0.84% 6.75% 2.36% -0.69%
Benchmarks
ROA, Competitors2
Comcast Corp. 4.96% 4.66% 12.15% 4.82% 4.90%
Netflix Inc. 5.49% 4.66% 2.94% 1.37% 1.20%
Walt Disney Co. 5.70% 12.78% 9.37% 10.20% 9.51%
ROA, Sector
Media 4.32% 5.12% 9.40% 5.01% 5.39%
ROA, Industry
Consumer Services 5.72% 6.17% 8.33% 6.73% 6.77%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

1 2019 Calculation
ROA = 100 × Net income (loss) attributable to Charter shareholders ÷ Total assets
= 100 × 1,668 ÷ 148,188 = 1.13%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Charter Communications Inc.’s ROA deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.