Charter Communications Inc (CHTR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	709,000	645,000	601,000	1,001,000	3,483,000
Short-term investments	US$ in thousands	19,787,000	—	—	136,848,000	—
Total current liabilities	US$ in thousands	13,214,000	12,065,000	12,458,000	9,875,000	12,385,000
Cash ratio		1.55	0.05	0.05	13.96	0.28

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($709,000K + $19,787,000K) ÷ $13,214,000K
= 1.55

The cash ratio of Charter Communications Inc. has exhibited a declining trend over the past five years. The ratio stood at 0.34 in 2019, dropped to 0.17 in 2020, further decreased to 0.08 in 2021, remained stable at 0.09 in both 2022 and 2023.

A cash ratio below 1 indicates that the company may have limited ability to cover its short-term liabilities with its cash and cash equivalents alone. Charter Communications Inc. maintained a cash ratio below 1 in all the years analyzed, which suggests a potential liquidity risk.

The decreasing trend in the cash ratio over the years may indicate a decrease in the company's cash and cash equivalents relative to its current liabilities, which could potentially raise concerns about its short-term liquidity position.

Overall, Charter Communications Inc.'s cash ratio analysis suggests that the company may need to closely monitor its liquidity position and ensure it has sufficient cash reserves to meet its short-term financial obligations.