Charter Communications Inc. (NASDAQ:CHTR)

The receivables turnover ratio exhibits a declining trend over the analyzed period starting from the first available data in March 31, 2020. Initially, the ratio was 21.85 and showed a steady decrease throughout the subsequent quarters, reaching 15.56 by June 30, 2025. This decreasing trend indicates that the firm is collecting its receivables less frequently during the later periods as compared to earlier ones.

Correspondingly, the average receivable collection period, measured in number of days, shows an upward trend. Beginning at 17 days in March 31, 2020, the collection period increases gradually to 23 days by June 30, 2025. This inverse relationship with the receivables turnover ratio suggests that it is taking more time for the company to collect payments from its customers over time.

The consistency in these opposing trends between receivables turnover and average collection period points to a possible elongation in credit terms or slower payments from customers. The working capital turnover ratio is not available for analysis as no data points are provided.

Receivables Turnover Ratio

Shows a steady decline from 21.85 to 15.56 over the reporting periods, indicating slower receivables collection.

Average Receivable Collection Period

Increases from 17 days to 23 days, highlighting an increasing duration for collecting receivables.

The revenue figures exhibit a generally stable and slightly increasing trend over the observed periods. Starting at approximately 11,738 million US dollars in March 2020, revenues experienced a consistent upward movement with minor fluctuations, reaching around 13,766 million US dollars by June 2025. This indicates modest growth in top-line performance, with no drastic declines or volatility noted across the quarters.

Accounts receivable, less the allowance for doubtful accounts, show a gradual increase over the periods audited. The values increased from 2,091 million US dollars in March 2020 to 3,549 million US dollars by June 2025. The trend signifies an accumulation of receivables relative to revenue growth, which may suggest changing credit policies, billing cycles, or collection efficiency over time. Notably, the rise in receivables outpaces the revenue growth, which could warrant further examination regarding working capital management.

The receivables turnover ratio, available from December 2020 onward, reveals a declining pattern. Starting at a ratio of 21.85, it progressively dropped to 15.56 by June 2025. This decline implies a slower conversion of receivables into cash, potentially indicating lengthening payment cycles or weaker collection practices. Such a trend may impact liquidity and necessitates careful monitoring.

Summary of Key Trends

Revenues

Consistently increased at a moderate rate, indicating stable growth.

Accounts Receivable

Increased steadily, outpacing revenue growth which could affect cash flow management.

Receivables Turnover

Declined over the period, suggesting slower collection of receivables and potential liquidity concerns.

The analysis of the provided financial data reveals several significant trends and changes over the reported periods.

Working Capital

The working capital values consistently remain negative throughout the entire timeline, indicating that current liabilities exceed current assets. The absolute magnitude of this negative working capital exhibits substantial fluctuations, with values ranging approximately between -4,377 million USD and -9,744 million USD. Notably, working capital shows notable declines towards the end of 2021 and during 2023 and 2024, reaching its most negative values around these periods. These trends may reflect increased short-term obligations, changes in current asset management, or operational demands requiring greater liquidity utilization.

Revenues

Revenue figures display relative stability with a general upward trajectory over the quarters. Starting at approximately 11,738 million USD in the first quarter of 2020, revenues increased steadily, reaching peaks around 13,711 million USD to 13,795 million USD in early to mid-2024. There are minor fluctuations from quarter to quarter; however, the overall pattern suggests moderate growth in sales or service income. This steady increase over time may signal successful market penetration, pricing adjustments, or general business expansion.

Working Capital Turnover

Data for the working capital turnover ratio is unavailable, which limits direct analysis of how efficiently working capital is being utilized relative to revenues. Given the persistently negative working capital values, traditional calculation and interpretation of this ratio may be constrained or less meaningful in this context.

In summary, the company's revenue performance indicates gradual growth with minor fluctuations. Conversely, working capital remains consistently negative with increasing magnitude during specific periods, suggesting potential liquidity pressures or strategic financing decisions. The absence of working capital turnover ratio data precludes deeper insights into operational efficiency from this perspective. Overall, these trends highlight the importance of closely monitoring liquidity management alongside revenue growth.

Receivables Turnover

The receivables turnover ratio demonstrates a declining trend over the observed periods. Starting from a high point of 21.85 in the first available quarter, it gradually decreases with minor fluctuations, reaching 15.56 by the final quarter. This consistent decline indicates that the company is collecting its receivables less frequently compared to earlier periods.

Average Receivable Collection Period

The average receivable collection period shows an increasing trend complementary to the decline in receivables turnover. Initially recorded at 17 days, this period lengthens steadily over time, reaching 23 days by the last quarter. This suggests that customers are taking longer to settle their accounts, reflecting a possible extension of credit terms or slower payment behavior.

Overall Analysis

There is a clear inverse relationship between receivables turnover and the average collection period. As the turnover ratio decreases, the days required to collect receivables increase. This pattern may indicate emerging inefficiencies in credit management or changes in customer payment habits. The trend could impact the company's liquidity and cash flow management, warranting closer monitoring and potentially more stringent credit policies.