Charter Communications Inc (CHTR)

Receivables 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
Revenue (ttm)	US$ in thousands	55,085,000	54,870,000	54,659,000	54,633,000	54,607,000	54,570,000	54,536,000	54,475,000	54,022,000	53,560,000	53,156,000	52,360,000	51,682,000	51,094,000	49,987,000	48,881,000	48,097,000	47,234,000	46,645,000	46,296,000
Receivables	US$ in thousands	3,097,000	3,067,000	3,000,000	3,004,000	2,965,000	2,932,000	2,864,000	2,851,000	2,921,000	2,841,000	2,779,000	2,530,000	2,579,000	2,645,000	2,583,000	2,395,000	2,201,000	2,068,000	1,994,000	2,091,000
Receivables turnover		17.79	17.89	18.22	18.19	18.42	18.61	19.04	19.11	18.49	18.85	19.13	20.70	20.04	19.32	19.35	20.41	21.85	22.84	23.39	22.14

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $55,085,000K ÷ $3,097,000K
= 17.79

The receivables turnover of Charter Communications Inc has shown a decreasing trend over the past few years, indicating that the company is taking longer to collect payments from its customers. From March 31, 2020, to December 31, 2024, the receivables turnover ratio has declined from 22.14 to 17.79.

A lower receivables turnover ratio may suggest that Charter Communications Inc is facing challenges in collecting outstanding receivables efficiently, potentially pointing to issues with credit policies, customer payment behaviors, or collection processes. This trend could have implications for the company's cash flow and liquidity position, as a longer collection period ties up working capital that could otherwise be used for operational expenses or investments.

Management should closely monitor the receivables turnover ratio and consider implementing strategies to improve collection efficiency, such as tightening credit terms, enhancing collection efforts, or incentivizing early payments from customers. Maintaining a healthy receivables turnover ratio is crucial for maintaining a strong financial position and ensuring a steady flow of cash to support business operations and growth initiatives.