Charter Communications Inc (CHTR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 12,559,000 | 11,962,000 | 10,526,000 | 8,405,000 | 6,511,000 |
| Long-term debt | US$ in thousands | 95,777,000 | 96,093,000 | 88,564,000 | 81,744,000 | 75,578,000 |
| Total stockholders’ equity | US$ in thousands | 11,086,000 | 9,119,000 | 14,050,000 | 23,805,000 | 31,445,000 |
| Return on total capital | 11.75% | 11.37% | 10.26% | 7.96% | 6.08% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $12,559,000K ÷ ($95,777,000K + $11,086,000K)
= 11.75%
Charter Communications Inc.'s return on total capital has shown a consistent upward trend over the past five years. The company's return on total capital increased from 5.86% in 2019 to 11.49% in 2023. This indicates that Charter Communications Inc. has been effectively utilizing its total capital to generate profits for its shareholders. The steady improvement in return on total capital highlights the company's ability to efficiently allocate its resources and generate higher returns on its investments. Overall, the increasing trend in return on total capital reflects positively on Charter Communications Inc.'s financial performance and management's effectiveness in maximizing shareholder value over the years.
Peer comparison
Dec 31, 2023