Charter Communications Inc (CHTR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,226,000 | 5,661,000 | 4,855,000 | 4,997,000 | 5,358,000 |
| Payables | US$ in thousands | 880,000 | 931,000 | 952,000 | 724,000 | 763,000 |
| Payables turnover | 5.94 | 6.08 | 5.10 | 6.90 | 7.02 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,226,000K ÷ $880,000K
= 5.94
The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how many times a company pays off its suppliers in a given period. For Charter Communications Inc, the payables turnover ratio has shown some fluctuations over the years, from 7.02 in December 2020 to 5.94 in December 2024.
A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, potentially improving its liquidity and relationships with suppliers. Conversely, a lower payables turnover ratio may suggest delayed payments or stretched relationships with vendors.
The downward trend seen in Charter Communications Inc's payables turnover ratio over the years could indicate a shift towards more extended payment terms with suppliers or changes in the company's working capital management practices. This trend may also suggest potential concerns regarding the company's ability to manage its payables efficiently.
Further analysis and comparison with industry benchmarks or historical data would be necessary to gain a deeper understanding of the reasons behind the changes in Charter Communications Inc's payables turnover ratio and its implications for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024