Charter Communications Inc (CHTR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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	—
Receivables	US$ in thousands	2,965,000	2,921,000	2,579,000	2,201,000	2,227,000
Total current liabilities	US$ in thousands	13,214,000	12,065,000	12,458,000	9,875,000	12,385,000
Quick ratio		1.78	0.30	0.26	14.18	0.46

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($709,000K + $19,787,000K + $2,965,000K) ÷ $13,214,000K
= 1.78

The quick ratio, also known as the acid-test ratio, reflects Charter Communications Inc.'s ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

Charter Communications Inc.'s quick ratio has been decreasing over the past five years, from 0.52 in 2019 to 0.31 in 2023. This downward trend suggests a potential deterioration in the company's liquidity position. The quick ratio of 0.31 in 2023 implies that Charter Communications Inc. has $0.31 in liquid assets available to cover each dollar of its current liabilities.

A quick ratio of 0.31 indicates that Charter Communications Inc. may struggle to meet its short-term obligations without relying on selling inventory or raising additional funds. Investors and creditors may view this low quick ratio as a red flag for the company's financial health and liquidity management. It is important for Charter Communications Inc. to monitor and improve its quick ratio to ensure its ability to meet short-term obligations in a timely manner.