Charter Communications Inc (CHTR)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.31 | 0.31 | 0.33 | 0.29 | 0.40 |
| Quick ratio | 0.26 | 1.78 | 0.30 | 0.26 | 14.18 |
| Cash ratio | 0.03 | 1.55 | 0.05 | 0.05 | 13.96 |
Charter Communications Inc's liquidity ratios have shown fluctuations over the years as per the provided data. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has decreased from 0.40 in December 2020 to 0.31 in December 2024. This downward trend indicates a potential weakening in the company's short-term liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed variability. It dropped significantly from 14.18 in December 2020 to 0.26 in December 2021 before fluctuating between 0.26 and 1.78 in the following years. Such fluctuations in the quick ratio suggest volatility in the company's ability to meet its short-term obligations without relying on inventory.
Moreover, the cash ratio, representing the company's ability to cover its current liabilities with cash and near-cash assets, indicates a notable decline in liquidity from 13.96 in December 2020 to 0.03 in December 2024. This substantial decrease could signal potential challenges for Charter Communications Inc in meeting its immediate payment obligations with its available liquid assets.
In conclusion, the liquidity ratios of Charter Communications Inc have demonstrated fluctuations and a general downward trend over the years, raising concerns about the company's short-term liquidity position and ability to meet its current financial obligations promptly.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -40.94 | -40.21 | -51.84 | -34.67 | -35.27 |
The cash conversion cycle of Charter Communications Inc has shown fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was -35.27 days, indicating that it was efficient in converting its investments in inventory and accounts receivable into cash quickly. However, this improved even further by December 31, 2021, with a cash conversion cycle of -34.67 days.
By December 31, 2022, the cash conversion cycle significantly increased to -51.84 days, suggesting a longer period required to convert investments into cash. However, the company was able to reduce this cycle by December 31, 2023, to -40.21 days, indicating an improvement in efficiency.
As of December 31, 2024, the cash conversion cycle stood at -40.94 days, showing a slight decrease compared to the previous year. Overall, Charter Communications Inc has generally maintained a negative cash conversion cycle, implying swift conversion of investments into cash, albeit with some fluctuations noted over the years.