Charter Communications Inc (CHTR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 89.63% | 91.01% | 90.33% | 88.86% | 87.32% |
| Operating profit margin | 23.00% | 22.14% | 20.37% | 17.48% | 14.23% |
| Pretax margin | 11.26% | 12.34% | 11.07% | 8.00% | 4.60% |
| Net profit margin | 8.35% | 9.36% | 9.01% | 6.70% | 3.64% |
Charter Communications Inc.'s profitability ratios exhibit a consistent and generally positive trend over the past five years. The gross profit margin has remained consistently high at 100% in the last three years, indicating that the company is effectively managing its production costs and generating significant revenue.
The operating profit margin has shown steady improvement, increasing from 14.15% in 2019 to 22.90% in 2023. This suggests that the company has been able to control its operating expenses relative to its revenue, resulting in improved operational efficiency.
Similarly, the pretax margin has also shown a positive trend, increasing from 5.31% in 2019 to 12.55% in 2023. This indicates that Charter Communications Inc. has been successful in managing its overall costs and expenses, leading to higher profitability before considering taxes.
Lastly, the net profit margin has demonstrated consistent growth over the past five years, with an increase from 3.64% in 2019 to 8.35% in 2023. This shows that the company has been effective in managing various costs, including taxes and interest expenses, to improve bottom-line profitability.
In conclusion, Charter Communications Inc.'s profitability ratios reflect a strong and improving financial performance, highlighting the company's ability to efficiently generate profits and manage costs effectively.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.53% | 8.28% | 7.39% | 5.83% | 4.39% |
| Return on assets (ROA) | 3.10% | 3.50% | 3.27% | 2.23% | 1.13% |
| Return on total capital | 11.75% | 11.37% | 10.26% | 7.96% | 6.08% |
| Return on equity (ROE) | 41.11% | 55.43% | 33.12% | 13.53% | 5.30% |
Charter Communications Inc. has shown a consistent improvement in its profitability ratios over the past five years.
The Operating Return on Assets (Operating ROA) has gradually increased from 4.37% in 2019 to 8.50% in 2023, indicating that the company has been more efficient in generating operating income from its assets. This suggests effective management of assets to generate profits.
The Return on Assets (ROA) also shows a positive trend, increasing from 1.13% in 2019 to 3.10% in 2023. This indicates that Charter Communications has been able to generate higher profits relative to its total assets over the years.
The Return on Total Capital has also seen a steady improvement, reaching 11.49% in 2023, up from 5.86% in 2019. This shows that the company has been able to generate better returns on its total invested capital.
Furthermore, the Return on Equity (ROE) has shown significant growth, increasing from 5.30% in 2019 to 41.11% in 2023. This suggests that the company has been effectively leveraging shareholder equity to generate higher returns for its investors.
Overall, the consistent improvement in profitability ratios indicates that Charter Communications Inc. has been successful in enhancing its profitability and generating value for its stakeholders over the years.