Charter Communications Inc. (NASDAQ:CHTR)
Analysis of Profitability Ratios
Beginner level
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Charter Communications Inc., profitability ratios
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
| 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
| 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
| 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
| 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
| 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. |