Charter Communications Inc (CHTR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 13,118,000 | 12,559,000 | 11,962,000 | 10,526,000 | 8,405,000 |
| Long-term debt | US$ in thousands | 92,134,000 | 95,777,000 | 96,093,000 | 88,564,000 | 81,744,000 |
| Total stockholders’ equity | US$ in thousands | 15,587,000 | 11,086,000 | 9,119,000 | 14,050,000 | 23,805,000 |
| Return on total capital | 12.18% | 11.75% | 11.37% | 10.26% | 7.96% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $13,118,000K ÷ ($92,134,000K + $15,587,000K)
= 12.18%
Charter Communications Inc's return on total capital has shown a positive trend over the past five years. It increased from 7.96% as of December 31, 2020, to 12.18% as of December 31, 2024. This indicates that the company has been able to generate a higher return relative to the total capital employed in its operations. The consistent improvement in this ratio reflects Charter Communications Inc's efficient utilization of capital and potential for generating profits. It suggests that the company is effectively allocating resources to projects and investments that are yielding positive returns, thereby enhancing shareholder value.
Peer comparison
Dec 31, 2024