Charter Communications Inc (CHTR)

The liquidity ratios of Charter Communications Inc. show a consistent decline over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has decreased from 0.52 in 2019 to 0.31 in 2023. This downward trend indicates that the company may be facing challenges in meeting its current liabilities.

Similarly, the quick ratio, which excludes inventory from current assets, also follows the same declining pattern, dropping from 0.52 in 2019 to 0.31 in 2023. This suggests that the company may have limited ability to cover its immediate obligations without relying on inventory.

The cash ratio, which specifically focuses on the company's ability to cover its current liabilities with cash and cash equivalents, has also witnessed a significant decrease from 0.34 in 2019 to 0.09 in 2023. This indicates that Charter Communications Inc. may have a lower level of cash reserves available to meet its short-term obligations.

Overall, the declining liquidity ratios of Charter Communications Inc. raise concerns about its short-term financial health and ability to manage its current liabilities efficiently. This trend requires further investigation to identify the root causes and potential corrective measures to improve the company's liquidity position.

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See also:

Charter Communications Inc Liquidity Ratios

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Additional liquidity measure

The cash conversion cycle of Charter Communications Inc. has shown a fluctuating trend over the past five years. From December 31, 2019 to December 31, 2023, the cash conversion cycle has increased from 7.94 days to 19.82 days. This indicates a lengthening of the time it takes for Charter Communications to convert its investments in inventory and other resources into cash received from its customers.

The increase in the cash conversion cycle suggests that Charter Communications may be taking longer to sell its products/services and collect payments from customers, or it may be holding onto inventory for a longer period. This could potentially point towards challenges in managing working capital efficiently or changes in the company's operating cycle.

It is important for Charter Communications to monitor and manage its cash conversion cycle effectively to ensure optimal use of working capital and maintain healthy liquidity levels. Taking steps to streamline operations, improve inventory management, and enhance customer credit policies could help in reducing the cash conversion cycle and enhancing overall financial performance.