Charter Communications Inc. (NASDAQ:CHTR)

The analysis of the quarterly financial metrics reveals distinct trends in the company's receivables management over the observed periods.

Receivables Turnover Ratio

The receivables turnover ratio exhibits a generally declining trend from March 2021 to June 2025. Starting at 20.41 in the first quarter of 2021, the ratio fluctuates slightly in the subsequent quarters but moves steadily downward, reaching 15.56 by mid-2025. This decline indicates that the company is collecting its receivables less frequently over time, suggesting a gradual slowdown in collection efficiency or possibly an extension of credit terms.

Average Receivable Collection Period

Conversely, the average receivable collection period shows an increasing trend over the same timeframe. Beginning at 18 days in early 2021, it incrementally rises to 23 days by the first quarter of 2025. This increasing number of days aligns with the downward trend in receivables turnover, confirming that the company is taking longer to convert receivables into cash. The stability of days around 19 to 20 in the early periods transitions into a consistent rise beyond 20 days in later periods.

Working Capital Turnover Ratio

No data is available for the working capital turnover ratio across all periods, precluding any analysis or inference regarding its trends or implications.

Overall, the combined trends of decreasing receivables turnover and increasing collection period suggest a potential weakening in the company's accounts receivable management efficiency. This could have implications for cash flow and liquidity if the trend persists. No information on working capital turnover is provided to assess broader operational efficiency or asset utilization.

The financial data reveals several noteworthy trends over the analyzed quarters. Revenues demonstrate a general upward trajectory, growing from $12,522 million in March 2021 to a peak near $13,926 million by December 2024. Although some quarters exhibit slight fluctuations, the overall pattern indicates steady revenue growth over the examined period.

Accounts receivable, net of doubtful accounts, similarly increase across the quarters. Starting at $2,395 million in March 2021, the figure rises consistently to $3,549 million by June 2025. This gradual increase suggests an expansion in credit sales or lengthening collection cycles.

The receivables turnover ratio shows a declining trend, moving from 20.41 times in March 2021 to 15.56 times in June 2025. This indicates that the speed at which receivables are collected has decreased over time. While revenues grew, the efficiency of converting receivables into cash diminished, potentially reflecting relaxed credit policies or longer payment terms extended to customers.

Revenue Trend

Steady growth with minor fluctuations, increasing by approximately 11% from early 2021 to late 2024.

Accounts Receivable

Consistent increase, suggesting higher credit sales or extended collection periods.

Receivables Turnover Ratio

Steady decline, indicating slower collection of outstanding receivables and decreased operational efficiency in credit management.

Overall, while the company successfully increased its revenues, the rising accounts receivable and decreasing turnover ratio highlight a weakening in cash conversion efficiency. This might warrant closer monitoring of credit risk and collection processes to ensure sustained liquidity and financial health.

The quarterly financial data reveals several notable trends and patterns related to working capital, revenues, and operating efficiency as reflected in working capital turnover.

Working Capital

Working capital has consistently exhibited negative values throughout the entire period, indicating that current liabilities exceed current assets. This condition persisted across all quarters, with fluctuations between approximately -5,356 million and nearly -9,744 million US dollars. A general pattern of deterioration can be observed, especially towards the end of the timeline, where the negative working capital reached its most severe levels. Initial quarters show values near -6,253 million, improving slightly to around -5,356 million at mid-2021, but subsequently declining sharply to below -9,000 million by late 2021 and late 2024. Although there were intermittent improvements, the overall trend suggests increasing pressure on liquidity and emphasis on current liabilities management.

Revenues

Revenues demonstrate a relatively stable, though slightly increasing trend over the reported quarters. Starting from about 12,522 million US dollars in early 2021, there is a gradual increase to peak values near 13,926 million by late 2024. The increases are modest and fairly consistent, reflecting steady demand or pricing power without significant volatility. Quarterly revenues fluctuate within a narrow range, generally maintaining above 13,500 million from mid-2022 onward. There is no indication of any sharp declines or exceptional growth spurts; the performance suggests a mature revenue base with stable operations.

Working Capital Turnover

No data has been reported for working capital turnover, which precludes direct analysis of operational efficiency in this context. However, given the persistent negative working capital, the turnover ratio might be challenging to interpret or could indicate operational pressures if it were available.

In summary, the data indicates a business managing consistent revenue generation with slow but steady growth. However, the persistence and worsening of negative working capital highlight ongoing liquidity challenges. This pattern may imply reliance on short-term financing or supplier credit, potentially impacting operational flexibility. Monitoring and managing working capital dynamics would appear to be a critical focus area for maintaining financial health going forward.

Receivables Turnover

The receivables turnover ratio exhibited a declining trend over the observed periods. Starting at a relatively high level of 20.41 at the beginning of 2021, the ratio decreased moderately throughout the subsequent quarters, with some fluctuations. Notably, there was a noticeable drop from around 20.7 in the first quarter of 2022 to 15.56 by mid-2025, indicating a gradual reduction in the efficiency of collecting receivables over time.

Average Receivable Collection Period

Conversely, the average receivable collection period showed an upward trend over the same timeframe. Initially maintained at around 18 to 19 days during early 2021 and 2022, the collection period extended progressively, reaching 23 days by mid-2025. This increase reflects a lengthening in the time it takes for the company to convert its receivables into cash.

Overall Analysis

The inverse movement between the receivables turnover ratio and the average collection period is consistent with financial principles, as a lower turnover ratio generally corresponds with a longer collection period. The observed gradual decline in turnover and the corresponding increase in collection days suggest a weakening in receivables management efficiency over the examined period. These trends may point to challenges in credit policy enforcement or changes in customer payment behavior, potentially impacting liquidity.