Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Charter Communications Inc., profitability ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Return on Sales
Gross profit margin 39.79% 38.83% 39.14% 39.09% 37.77%
Operating profit margin 23.81% 23.00% 22.14% 20.37% 17.48%
Net profit margin 9.23% 8.35% 9.36% 9.01% 6.70%
Return on Investment
Return on equity (ROE) 32.61% 41.11% 55.43% 33.12% 13.53%
Return on assets (ROA) 3.39% 3.10% 3.50% 3.27% 2.23%

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 margins and returns of the company exhibit notable trends over the five-year period.

Gross Profit Margin
The gross profit margin shows a generally stable and slight upward trend, beginning at 37.77% in 2020 and increasing to 39.79% by 2024. Minor fluctuations occurred during the period, with the highest margin recorded in 2024, indicating a relatively consistent ability to manage production costs relative to sales.
Operating Profit Margin
Operating profit margin significantly improved, rising from 17.48% in 2020 to 23.81% in 2024. This steady increase suggests enhanced operational efficiency and effective cost control beyond direct production costs, contributing to stronger core business profitability over time.
Net Profit Margin
The net profit margin increased from 6.7% in 2020 to 9.23% in 2024, peaking in 2022 at 9.36%. Although there was a slight decline in 2023, the margin rebounded in the final year observed. This trend illustrates an improving bottom line profitability, potentially reflecting better expense management, tax strategies, or other non-operating factors affecting net profit.
Return on Equity (ROE)
Return on equity experienced significant growth with volatility, starting at 13.53% in 2020 and surging to a peak of 55.43% in 2022. However, it declined to 32.61% by 2024. Despite the decrease from the peak, the ROE remained substantially above the initial level, indicating that shareholder value generation improved markedly but with some instability in recent years.
Return on Assets (ROA)
The return on assets showed a moderate upward trend from 2.23% in 2020 to 3.39% in 2024, with a slight dip observed in 2023. This measure suggests incremental improvements in asset utilization efficiency, though the changes are less pronounced compared to equity returns, which may imply increasing leverage or changes in capital structure.

Return on Sales


Return on Investment


Gross Profit Margin

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Gross profit 21,918 21,202 21,146 20,200 18,167
Revenues 55,085 54,607 54,022 51,682 48,097
Profitability Ratio
Gross profit margin1 39.79% 38.83% 39.14% 39.09% 37.77%
Benchmarks
Gross Profit Margin, Competitors2
Alphabet Inc. 58.20% 56.63% 55.38% 56.94% 53.58%
Comcast Corp. 70.08% 69.76% 68.53% 66.96% 68.02%
Meta Platforms Inc. 81.67% 80.76% 78.35% 80.79% 80.58%
Netflix Inc. 46.06% 41.54% 39.37% 41.64% 38.89%
Walt Disney Co. 35.75% 33.41% 34.24% 33.06% 32.89%

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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 21,918 ÷ 55,085 = 39.79%

2 Click competitor name to see calculations.


The financial data reveals several important trends over the five-year period under review. The figures indicate overall growth in revenues and gross profit, accompanied by relatively stable gross profit margins.

Revenue Trends
Revenues have shown a consistent upward trajectory from 48,097 million US dollars in 2020 to 55,085 million US dollars in 2024. This represents steady growth year-over-year, though the rate of increase appears to moderate slightly in the latter years, with more modest increments between 2022, 2023, and 2024.
Gross Profit Trends
Gross profit has also increased steadily, rising from 18,167 million US dollars in 2020 to 21,918 million US dollars in 2024. The growth in gross profit aligns closely with the increase in revenues, indicating effective management of direct costs related to goods and services sold.
Gross Profit Margin Analysis
The gross profit margin has fluctuated slightly but remains relatively stable in a narrow range between approximately 37.8% and 39.8%. The margin increased notably from 37.77% in 2020 to just above 39% in 2021 and 2022, suggesting improved operational efficiency or favorable pricing power during that time. Despite a slight dip to 38.83% in 2023, the margin rebounded to 39.79% in 2024, the highest in the five-year span. This indicates that the company has generally sustained a stable proportion of gross profit relative to revenues, even as absolute revenue and gross profit figures have grown.
Overall Insights
The data suggests a positive performance trend characterized by growing top-line revenues and bottom-line gross profit. The stability and slight improvement in gross profit margin imply effective cost control and/or pricing strategies. The moderation of revenue growth rate in recent years suggests a maturing market or increased competition; however, the firm’s ability to maintain and improve margins could be indicative of operational efficiencies or product mix advantages.

Operating Profit Margin

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Income from operations 13,118 12,559 11,962 10,526 8,405
Revenues 55,085 54,607 54,022 51,682 48,097
Profitability Ratio
Operating profit margin1 23.81% 23.00% 22.14% 20.37% 17.48%
Benchmarks
Operating Profit Margin, Competitors2
Alphabet Inc. 32.11% 27.42% 26.46% 30.55% 22.59%
Comcast Corp. 18.83% 19.18% 11.56% 17.89% 16.89%
Meta Platforms Inc. 42.18% 34.66% 24.82% 39.65% 38.01%
Netflix Inc. 26.71% 20.62% 17.82% 20.86% 18.34%
Walt Disney Co. 9.11% 5.74% 7.90% 4.46% -2.97%
Operating Profit Margin, Sector
Media & Entertainment 28.76% 24.15% 20.60% 25.91% 20.06%
Operating Profit Margin, Industry
Communication Services 26.04% 22.26% 16.99% 22.35% 16.41%

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
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 13,118 ÷ 55,085 = 23.81%

2 Click competitor name to see calculations.


Income from operations
The income from operations has shown a consistent upward trend over the analyzed period. Starting at $8,405 million in 2020, it increased notably each year, reaching $13,118 million by 2024. This represents a substantial growth indicating improved operational efficiency or increased scale of operations.
Revenues
Revenues exhibit a steady growth pattern as well, increasing from $48,097 million in 2020 to $55,085 million in 2024. The growth rate, while positive, appears to be more moderate compared to income from operations, suggesting that the company is potentially managing to improve profitability beyond mere sales increment.
Operating profit margin
The operating profit margin has shown a progressive improvement throughout the period. It rose from 17.48% in 2020 to 23.81% in 2024. This increase in margin percentages reflects enhanced cost management or operational leverage, contributing to better profitability relative to revenues.
Overall analysis
The data collectively suggest that the company has been successfully increasing both its revenue base and operational profitability. The more pronounced growth in income from operations compared to revenue growth implies effective control over operating expenses or favorable changes in business mix. The steady improvement in operating profit margin further confirms strengthening operational performance and efficiency over the five-year period.

Net Profit Margin

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

Microsoft Excel
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
Revenues 55,085 54,607 54,022 51,682 48,097
Profitability Ratio
Net profit margin1 9.23% 8.35% 9.36% 9.01% 6.70%
Benchmarks
Net Profit Margin, Competitors2
Alphabet Inc. 28.60% 24.01% 21.20% 29.51% 22.06%
Comcast Corp. 13.09% 12.66% 4.42% 12.17% 10.17%
Meta Platforms Inc. 37.91% 28.98% 19.90% 33.38% 33.90%
Netflix Inc. 22.34% 16.04% 14.21% 17.23% 11.05%
Walt Disney Co. 5.44% 2.65% 3.80% 2.96% -4.38%
Net Profit Margin, Sector
Media & Entertainment 23.97% 18.97% 14.69% 22.06% 16.27%
Net Profit Margin, Industry
Communication Services 20.41% 16.26% 11.36% 18.22% 11.24%

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 profit margin = 100 × Net income attributable to Charter shareholders ÷ Revenues
= 100 × 5,083 ÷ 55,085 = 9.23%

2 Click competitor name to see calculations.


The financial data reveals several key trends over the five-year period under review. Revenues demonstrate a steady but moderate increase year over year, indicating consistent top-line growth. Specifically, revenues grew from 48,097 million US dollars in 2020 to 55,085 million US dollars in 2024.

Net income attributable to shareholders also experiences growth, albeit with some fluctuations. The net income rose from 3,222 million US dollars in 2020 to a peak of 5,055 million US dollars in 2022. However, in 2023 there was a decline to 4,557 million US dollars, followed by a recovery to 5,083 million US dollars in 2024. This pattern indicates some volatility in profitability during the period despite an overall upward trend.

The net profit margin exhibits a generally positive trajectory, reflecting improved efficiency or profitability relative to revenues. Starting at 6.7% in 2020, the margin increased to over 9% in 2021 and 2022, dropped slightly to 8.35% in 2023, and rebounded to 9.23% in 2024. This suggests that the company managed to enhance its profit margins over time, despite the temporary dip in 2023.

Revenues
Demonstrated steady growth, increasing approximately 14.5% over the five years.
Net Income
Overall growth with a peak in 2022, a decline in 2023, and a subsequent recovery in 2024, suggesting some earning volatility.
Net Profit Margin
Improved from 6.7% to over 9% in most years, indicating better profitability efficiency, although 2023 showed a slight decrease.

In summary, the data indicates strong revenue growth accompanied by improving profitability margins. The fluctuations in net income and margin in 2023 merit further investigation to understand underlying causes, but the recovery in the following year is a positive sign of resilience.


Return on Equity (ROE)

Charter Communications Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
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
Total Charter shareholders’ equity 15,587 11,086 9,119 14,050 23,805
Profitability Ratio
ROE1 32.61% 41.11% 55.43% 33.12% 13.53%
Benchmarks
ROE, Competitors2
Alphabet Inc. 30.80% 26.04% 23.41% 30.22% 18.09%
Comcast Corp. 18.92% 18.61% 6.63% 14.73% 11.66%
Meta Platforms Inc. 34.14% 25.53% 18.45% 31.53% 22.72%
Netflix Inc. 35.21% 26.27% 21.62% 32.28% 24.96%
Walt Disney Co. 4.94% 2.37% 3.31% 2.25% -3.43%
ROE, Sector
Media & Entertainment 26.89% 21.62% 17.23% 23.91% 14.84%
ROE, Industry
Communication Services 23.73% 19.21% 13.78% 20.53% 11.56%

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
ROE = 100 × Net income attributable to Charter shareholders ÷ Total Charter shareholders’ equity
= 100 × 5,083 ÷ 15,587 = 32.61%

2 Click competitor name to see calculations.


Net Income Attributable to Charter Shareholders
The net income shows an overall upward trend over the five-year period, increasing from $3,222 million in 2020 to $5,083 million in 2024. Notably, there was a significant rise between 2020 and 2021, followed by a more moderate increase in 2022. Although a slight decline occurred in 2023, the value rebounded in 2024, surpassing previous peaks.
Total Charter Shareholders’ Equity
Total equity experienced a marked decline from $23,805 million in 2020 to a low of $9,119 million in 2022. After this decline, equity showed recovery, rising to $15,587 million by 2024. Despite the recovery, the equity in 2024 remained considerably lower than the initial 2020 level, indicating fluctuations with a significant dip mid-period.
Return on Equity (ROE)
ROE exhibited considerable volatility, increasing sharply from 13.53% in 2020 to a peak of 55.43% in 2022. The ratio then declined to 41.11% in 2023 and further to 32.61% in 2024. The initial increase corresponds with the decline in shareholders’ equity, suggesting higher returns generated on a reduced equity base. Subsequent decreases in ROE indicate some normalization or reduction in profitability relative to equity.
Overall Analysis
The data reveals a period of strong profitability growth measured by net income, peaking in 2022, followed by minor fluctuations through 2024. In contrast, shareholders' equity suffered a significant contraction in the first half of the period but showed signs of recovery subsequently. The elevated ROE in 2021-2022 reflects enhanced profit generation efficiency, likely influenced by the diminished equity base. The subsequent declines in ROE, while still above the 2020 level, suggest a modest deceleration in profitability growth relative to equity.

Return on Assets (ROA)

Charter Communications Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
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
Total assets 150,020 147,193 144,523 142,491 144,206
Profitability Ratio
ROA1 3.39% 3.10% 3.50% 3.27% 2.23%
Benchmarks
ROA, Competitors2
Alphabet Inc. 22.24% 18.34% 16.42% 21.16% 12.60%
Comcast Corp. 6.08% 5.81% 2.09% 5.13% 3.85%
Meta Platforms Inc. 22.59% 17.03% 12.49% 23.72% 18.29%
Netflix Inc. 16.24% 11.10% 9.24% 11.48% 7.03%
Walt Disney Co. 2.53% 1.15% 1.54% 0.98% -1.42%
ROA, Sector
Media & Entertainment 14.18% 10.83% 8.40% 11.86% 7.30%
ROA, Industry
Communication Services 9.97% 7.63% 5.30% 8.05% 4.53%

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
ROA = 100 × Net income attributable to Charter shareholders ÷ Total assets
= 100 × 5,083 ÷ 150,020 = 3.39%

2 Click competitor name to see calculations.


The analysis of the financial data reveals several notable trends over the five-year period from 2020 to 2024.

Net Income Attributable to Charter Shareholders
The net income shows a general upward trend with some fluctuations. Starting from $3,222 million in 2020, it increased significantly to $4,654 million in 2021 and further to $5,055 million in 2022. However, in 2023 there was a decline to $4,557 million, before rising again to $5,083 million in 2024. This pattern suggests strong overall profitability with a dip in 2023 possibly due to transient factors.
Total Assets
Total assets experienced a moderate and steady increase over the period. Beginning at $144,206 million in 2020, the figure slightly decreased to $142,491 million in 2021 but then consistently rose each year thereafter, reaching $150,020 million by 2024. This indicates ongoing asset growth and capacity expansion.
Return on Assets (ROA)
The ROA percentage improved from 2.23% in 2020 to a peak of 3.5% in 2022, reflecting enhanced efficiency in generating profit from assets. There was a decrease to 3.1% in 2023, paralleling the drop in net income, after which the ratio rebounded to 3.39% in 2024. Overall, the ROA trend supports the view of strengthening asset utilization with minor volatility.

In summary, the financial data indicate a company that has grown its asset base steadily while maintaining upward momentum in profitability and operational efficiency. The 2023 dip in net income and ROA may warrant further investigation, but recovery in 2024 suggests resilience and a return to a positive growth trajectory.