Charter Communications Inc. (NASDAQ:CHTR)

The receivables turnover ratio shows a fluctuating trend over the reported periods. Starting at 20.55 in March 2020, it increased to a peak of 23.39 in September 2020 before beginning a gradual decline. By December 2023, the ratio had fallen to 18.42, indicating a decreasing frequency at which receivables were collected over time.

Correspondingly, the average receivable collection period, expressed in days, moved inversely to the receivables turnover ratio. Initially decreasing to 16 days during the middle of 2020, it then experienced a steady increase, reaching around 20 days by December 2023. This suggests that the company has been taking longer to collect payments from customers as time progressed.

There is no data available for working capital turnover, so no analysis can be performed for this metric.

Receivables Turnover Ratio

Peaked in the third quarter of 2020 and subsequently declined through the end of 2023.

The ratio decreased from 23.39 to 18.42 over the observed period, suggesting slower collection of receivables in the later periods.

Average Receivable Collection Period

Fluctuated inversely to the receivables turnover ratio, decreasing initially and then increasing to about 20 days by the end of 2023.

The lengthening collection period indicates a trend toward customers taking more time to pay their outstanding balances.

Working Capital Turnover

No data was provided, preventing any assessment or trend identification for this metric.

The quarterly financial data reveals several key trends in the company's performance over the analyzed period.

Revenues

The revenue figures exhibit a generally upward trajectory from March 2019 through December 2023. Beginning at approximately $11.2 billion in March 2019, revenues show modest increases each quarter, reaching above $13.7 billion by the end of 2023. Some quarters indicate more pronounced growth, such as the jump from $12.6 billion to $13.2 billion between December 2020 and December 2021. Overall, the data indicates consistent revenue growth across the period analyzed.

Accounts Receivable, Less Allowance for Doubtful Accounts

The accounts receivable balance, net of doubtful accounts, demonstrates a gradual increase over time. Starting at approximately $1.6 billion in early 2019, it grows to nearly $3 billion by the end of 2023. The increase is fairly steady with minor fluctuations; for example, a slight dip is observable around the mid-2021 period, but the upward trend resumes thereafter. This rise suggests more sales on credit or a lengthening of collection periods over time.

Receivables Turnover Ratio

The receivables turnover ratio values start from a high of 20.55 in March 2020 and decline gradually to about 18.42 by December 2023. This ratio measures how efficiently the company collects its receivables; the steady decrease suggests a moderate decline in collection efficiency or slower cash conversion cycles over the period. While still remaining near 18–20 times turnover annually, the trend indicates a slight loosening in receivables management.

In summary, the data portrays a company experiencing ongoing revenue growth with a rising accounts receivable balance and a gradually declining receivables turnover. These combined aspects may suggest expanding sales volumes accompanied by a slow increase in credit risk or elongation of customer payment cycles. Monitoring the trend in receivables turnover will be important going forward to ensure that collection practices remain effective despite increasing receivables balances.

Working Capital

The working capital figures display a consistently negative trend throughout the presented periods, ranging approximately between -4,377 million USD and -9,082 million USD. The fluctuations within this negative range indicate ongoing liquidity management challenges. Notably, after a peak negative value of roughly -8,599 million USD in September 2019, there was a relative improvement towards mid-2020, with values nearing -4,377 million USD in June 2020. However, this improvement proved temporary, as working capital values again emphasized a downward trajectory, culminating in the most negative value of about -9,082 million USD by December 2023.

This persistent negative working capital suggests the company might be efficiently using current liabilities for operations or facing short-term liquidity pressures. The overall pattern illustrates cyclical but predominantly worsening working capital positions, particularly visible in the periods ending from late 2021 onward.

Revenues

The revenue data indicate a general upward trend over the five-year interval. Beginning at approximately 11,206 million USD in the first quarter of 2019, revenues progressively increased with some quarters showing stronger growth, such as the jump from December 2019 (11,761 million USD) to December 2020 (12,624 million USD). The growth has been mostly steady, reaching over 13,500 million USD per quarter by the end of 2022 and maintaining figures around 13,600 to 13,700 million USD into 2023.

This gradual but consistent revenue growth reflects either increased sales volumes, improved pricing strategies, or expansion activities contributing positively to top-line performance. The fluctuations across quarters appear moderate, with slight seasonal or operational variances rather than sharp volatility.

Working Capital Turnover

No data is available for the working capital turnover ratio across all periods presented, which limits the ability to analyze operational efficiency or asset utilization through this metric.

Summary Insights

Overall, while revenue growth remains positive and steady, the persistently negative and fluctuating working capital figures suggest potential liquidity management issues or aggressive use of liabilities to finance operations. The increasing magnitude of negative working capital towards the later periods may warrant closer scrutiny on short-term financial health and funding structures.

The lack of working capital turnover ratios restricts a full assessment of efficiency trends related to working capital utilization. However, the data imply that despite strong revenue gains, the company faces challenges in balancing current assets and liabilities, which may impact short-term operational flexibility.

The receivables turnover ratio exhibits a generally declining trend from the end of 2019 through 2023. Initially, the ratio peaked in the quarters of 2019 and early 2020, reaching values above 22, with a maximum near 23.39 in September 2020. Thereafter, the turnover ratio consistently decreased, falling to a range between approximately 18.4 and 20.7 in the 2022 and 2023 periods. This downward movement suggests a slowing pace at which receivables are collected over time.

Correspondingly, the average receivable collection period, measured in days, shows an inverse pattern to the turnover ratio. From a low of 16 days in mid-2019 and early 2020, the collection period gradually lengthened, reaching 19 to 20 days by the end of 2022 and persisting at this elevated level through 2023. This increase indicates that the company is taking longer to collect its receivables as time progresses.

Receivables Turnover Ratio:

Ranged from approximately 22.14 to 23.39 in 2019 and early 2020, reflecting efficient collection.

Progressively declined afterwards, settling near 18.4 to 20.7 in 2022 and 2023, signaling slower turnover.

Average Receivable Collection Period:

Maintained between 16 to 18 days until late 2020, indicating prompt collections.

Gradually increased to 19-20 days from 2022 onward, suggesting extended collection times.

Overall, the data reveals a gradual deterioration in receivables management efficiency over the analyzed periods. The increasing collection period coupled with the declining turnover ratio may point to potential challenges in cash flow timing or changes in customer payment behaviors. Such trends warrant further investigation to address collection process effectiveness and credit policies.