Charter Communications Inc (CHTR)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	5,083,000	4,675,000	4,650,000	4,642,000	4,557,000	4,695,000	4,625,000	4,873,000	5,055,000	5,469,000	5,501,000	5,050,000	4,654,000	4,290,000	3,887,000	3,633,000	3,222,000	2,690,000	2,263,000	1,811,000
Total stockholders’ equity	US$ in thousands	15,587,000	14,099,000	12,879,000	11,874,000	11,086,000	11,098,000	10,460,000	9,418,000	9,119,000	8,889,000	9,879,000	12,060,000	14,050,000	17,030,000	19,342,000	20,997,000	23,805,000	26,906,000	29,356,000	29,628,000
ROE		32.61%	33.16%	36.11%	39.09%	41.11%	42.30%	44.22%	51.74%	55.43%	61.53%	55.68%	41.87%	33.12%	25.19%	20.10%	17.30%	13.53%	10.00%	7.71%	6.11%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $5,083,000K ÷ $15,587,000K
= 32.61%

Charter Communications Inc's return on equity (ROE) has shown a positive trend over the past few years, indicating improving profitability relative to shareholders' equity. The ROE increased from 6.11% as of March 31, 2020, to a peak of 61.53% as of September 30, 2022. This significant improvement in ROE suggests that the company has been effectively utilizing its equity to generate profits.

However, it is worth noting that the ROE started to decline after reaching its peak in September 2022, falling to 32.61% by December 31, 2024. This decline could raise concerns about Charter Communications Inc's efficiency in generating returns on shareholders' equity.

For a more comprehensive analysis, it would be beneficial to investigate the factors driving the fluctuations in ROE, such as changes in profitability, asset utilization, and leverage ratios. Additionally, comparing Charter Communications Inc's ROE with industry peers and analyzing the industry dynamics could provide further insights into the company's performance and competitiveness.