Charter Communications Inc (CHTR)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	459,000	709,000	645,000	601,000	1,001,000
Short-term investments	US$ in thousands	—	19,787,000	—	—	136,848,000
Receivables	US$ in thousands	3,097,000	2,965,000	2,921,000	2,579,000	2,201,000
Total current liabilities	US$ in thousands	13,486,000	13,214,000	12,065,000	12,458,000	9,875,000
Quick ratio		0.26	1.78	0.30	0.26	14.18

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($459,000K + $—K + $3,097,000K) ÷ $13,486,000K
= 0.26

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at the data for Charter Communications Inc, we observe fluctuations in the quick ratio over the years.

As of December 31, 2020, the quick ratio was exceptionally high at 14.18, indicating the company had a substantial amount of highly liquid assets relative to its current liabilities. This could imply Charter Communications Inc had a strong ability to cover its short-term obligations without relying heavily on inventory.

However, the quick ratio dropped significantly to 0.26 by December 31, 2021, suggesting a potential strain on the company's short-term liquidity. This could be a cause for concern as it may indicate difficulty in meeting immediate payment obligations with quick assets alone.

In the following years, the quick ratio improved but remained relatively low at 0.30 on December 31, 2022, and 0.26 on December 31, 2024. These figures suggest that while Charter Communications Inc managed to enhance its liquidity position compared to 2021, there may still be a dependency on non-liquid assets to meet short-term liabilities.

By December 31, 2023, the quick ratio surged to 1.78, indicating a substantial improvement in the company's ability to cover its short-term commitments with quick assets. This could signify better liquidity management and a stronger financial position.

In conclusion, despite some fluctuations, Charter Communications Inc's quick ratio experienced notable variations over the years, highlighting changes in the company's liquidity position and its ability to meet short-term obligations with liquid assets.