Charter Communications Inc (CHTR)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	5,226,000	5,666,000	5,644,000	5,642,000	5,661,000	5,531,000	5,220,000	5,051,000	4,855,000	3,808,000	4,323,000	4,673,000	5,024,000	5,156,000	5,309,000	5,342,000	5,389,000	5,626,000	5,569,000	5,846,000
Payables	US$ in thousands	880,000	855,000	832,000	850,000	931,000	771,000	748,000	746,000	952,000	740,000	718,000	706,000	724,000	686,000	704,000	724,000	763,000	728,000	667,000	733,000
Payables turnover		5.94	6.63	6.78	6.64	6.08	7.17	6.98	6.77	5.10	5.15	6.02	6.62	6.94	7.52	7.54	7.38	7.06	7.73	8.35	7.98

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,226,000K ÷ $880,000K
= 5.94

Charter Communications Inc's payables turnover ratio has been fluctuating over the past few years, indicating changes in the company's ability to manage its accounts payable effectively. The ratio ranged from a high of 8.35 in June 2020 to a low of 5.10 in December 2022.

A higher payables turnover ratio generally indicates that a company is paying off its suppliers more quickly, which can be a positive sign of strong financial health and efficient working capital management. However, a very high ratio may also suggest that the company is delaying payments excessively, potentially straining relationships with suppliers.

On the other hand, a lower payables turnover ratio could imply that the company is taking longer to pay its suppliers, which may be beneficial for cash flow management in the short term but could lead to strained vendor relationships in the long run.

It is essential for Charter Communications Inc to closely monitor its payables turnover ratio and strike a balance between timely payments to suppliers and cash flow optimization to ensure sustainable operations and healthy supplier relationships.