.Short-term (Operating) Activity Analysis
Difficulty: Beginner
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Ratios (Summary)
Charter Communications Inc., short-term (operating) activity ratios
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Turnover Ratios | ||||||
| | Receivables turnover | |||||
| | Payables turnover | |||||
| | Working capital turnover | |||||
| Average No. of Days | ||||||
| | Add: Average receivable collection period | |||||
| | Less: Average payables payment period | |||||
Source: Based on data from Charter Communications Inc. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Charter Communications Inc.'s receivables turnover deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Charter Communications Inc.'s payables turnover declined from 2015 to 2016 and from 2016 to 2017. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Charter Communications Inc.'s average payables payment period increased from 2015 to 2016 and from 2016 to 2017. |
Receivables Turnover
Charter Communications Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Revenues | |||||
| | Accounts receivable, less allowance for doubtful accounts | |||||
| Ratio | ||||||
| | Receivables turnover1 | |||||
| Benchmarks | ||||||
| Receivables Turnover, Competitors | ||||||
| Comcast Corp. | ||||||
| Time Warner Inc. | ||||||
| Twenty-First Century Fox Inc. | ||||||
| Walt Disney Co. | ||||||
| Receivables Turnover, Sector | ||||||
| Media | ||||||
| Receivables Turnover, Industry | ||||||
| Consumer Services | ||||||
Source: Based on data from Charter Communications Inc. Annual Reports
2017 Calculations
1 Receivables turnover = Revenues ÷ Accounts receivable, less allowance for doubtful accounts
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Charter Communications Inc.'s receivables turnover deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Payables Turnover
Charter Communications Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Operating costs and expenses | |||||
| | Accounts payable, trade | |||||
| Ratio | ||||||
| | Payables turnover1 | |||||
| Benchmarks | ||||||
| Payables Turnover, Competitors | ||||||
| Comcast Corp. | ||||||
| Time Warner Inc. | ||||||
| Twenty-First Century Fox Inc. | ||||||
| Walt Disney Co. | ||||||
| Payables Turnover, Sector | ||||||
| Media | ||||||
| Payables Turnover, Industry | ||||||
| Consumer Services | ||||||
Source: Based on data from Charter Communications Inc. Annual Reports
2017 Calculations
1 Payables turnover = Operating costs and expenses ÷ Accounts payable, trade
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Charter Communications Inc.'s payables turnover declined from 2015 to 2016 and from 2016 to 2017. |
Working Capital Turnover
Charter Communications Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Current assets | |||||
| | Less: Current liabilities | |||||
| | Working capital | |||||
| | Revenues | |||||
| Ratio | ||||||
| | Working capital turnover1 | |||||
| Benchmarks | ||||||
| Working Capital Turnover, Competitors | ||||||
| Comcast Corp. | ||||||
| Time Warner Inc. | ||||||
| Twenty-First Century Fox Inc. | ||||||
| Walt Disney Co. | ||||||
| Working Capital Turnover, Sector | ||||||
| Media | ||||||
| Working Capital Turnover, Industry | ||||||
| Consumer Services | ||||||
Source: Based on data from Charter Communications Inc. Annual Reports
2017 Calculations
1 Working capital turnover = Revenues ÷ Working capital
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. |
Average Receivable Collection Period
Charter Communications Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| | Receivables turnover | |||||
| Ratio (no. of days) | ||||||
| | Average receivable collection period1 | |||||
| Benchmarks (no. of days) | ||||||
| Average Receivable Collection Period, Competitors | ||||||
| Comcast Corp. | ||||||
| Time Warner Inc. | ||||||
| Twenty-First Century Fox Inc. | ||||||
| Walt Disney Co. | ||||||
| Average Receivable Collection Period, Sector | ||||||
| Media | ||||||
| Average Receivable Collection Period, Industry | ||||||
| Consumer Services | ||||||
Source: Based on data from Charter Communications Inc. Annual Reports
2017 Calculations
1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
| Ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Average Payables Payment Period
Charter Communications Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| | Payables turnover | |||||
| Ratio (no. of days) | ||||||
| | Average payables payment period1 | |||||
| Benchmarks (no. of days) | ||||||
| Average Payables Payment Period, Competitors | ||||||
| Comcast Corp. | ||||||
| Time Warner Inc. | ||||||
| Twenty-First Century Fox Inc. | ||||||
| Walt Disney Co. | ||||||
| Average Payables Payment Period, Sector | ||||||
| Media | ||||||
| Average Payables Payment Period, Industry | ||||||
| Consumer Services | ||||||
Source: Based on data from Charter Communications Inc. Annual Reports
2017 Calculations
1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
| Ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Charter Communications Inc.'s average payables payment period increased from 2015 to 2016 and from 2016 to 2017. |
