Charter Communications Inc (CHTR)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.31 0.33 0.33 0.33 0.33 0.32 0.33 0.40 0.29 0.29 0.47 0.37 0.40 0.40 0.52 0.44 0.52 0.28 0.34 0.31
Quick ratio 1.78 0.28 0.28 0.28 0.30 0.29 0.29 0.36 0.26 11.33 13.96 14.06 14.18 0.33 0.45 0.38 0.46 0.23 0.28 0.25
Cash ratio 1.55 0.05 0.04 0.04 0.05 0.04 0.04 0.17 0.05 11.11 13.71 13.82 13.96 0.13 0.23 0.22 0.28 0.04 0.07 0.12

Charter Communications Inc.'s liquidity ratios indicate a consistent trend of weakness in terms of short-term financial health. The current ratio, quick ratio, and cash ratio have been relatively stable over the past eight quarters, hovering around 0.31 to 0.40, 0.31 to 0.40, and 0.08 to 0.21, respectively.

These ratios suggest that Charter Communications may face challenges in covering its short-term obligations with its current assets. The current ratio of 0.31 to 0.40 indicates that the company may have difficulty meeting its current liabilities with its current assets alone. The quick ratio, which excludes inventory from current assets, also shows a similar trend, reflecting the company's limited ability to cover immediate obligations.

Furthermore, the cash ratio, which specifically measures the company's ability to pay off its current liabilities with cash and cash equivalents, has remained low, ranging from 0.08 to 0.21. This implies that Charter Communications may rely heavily on non-cash current assets to meet its short-term financial obligations, which could pose a risk if there are disruptions in its cash flow.

Overall, based on the liquidity ratios, it appears that Charter Communications Inc. may need to focus on improving its cash reserves and managing its short-term assets more effectively to enhance its liquidity position and mitigate potential liquidity challenges in the future.

See also:

Charter Communications Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days -40.21 -31.27 -33.13 -34.81 -51.84 -51.57 -41.54 -37.51 -34.39 -29.67 -29.54 -31.58 -34.98 -31.25 -28.11 -29.28 -31.02 -20.87 -30.99 -27.72

The cash conversion cycle of Charter Communications Inc. has been relatively consistent over the past eight quarters, ranging from 17.64 days to 19.82 days. This cycle represents the time taken by the company to convert its investments in inventory and other resources into cash flows from sales to customers.

The longer the cash conversion cycle, the longer the company's capital is tied up in operations before being converted into cash. Charter Communications Inc.'s cash conversion cycle has been relatively stable, indicating efficient management of its working capital.

It is worth noting that a lower cash conversion cycle is generally favorable as it suggests that the company is able to quickly convert its investments into cash flow, thus improving its liquidity and overall financial performance. In the case of Charter Communications Inc., the consistency in the cash conversion cycle suggests that the company has been successful in managing its inventory, accounts receivable, and accounts payable effectively.