Charter Communications Inc (CHTR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 13,118,000 | 12,996,000 | 12,787,000 | 12,764,000 | 12,559,000 | 12,332,000 | 12,130,000 | 12,117,000 | 11,962,000 | 11,878,000 | 11,881,000 | 11,229,000 | 10,526,000 | 10,032,000 | 9,277,000 | 8,671,000 | 8,405,000 | 7,902,000 | 7,316,000 | 6,888,000 |
| Long-term debt | US$ in thousands | 92,134,000 | 93,517,000 | 96,692,000 | 97,965,000 | 95,777,000 | 95,800,000 | 95,971,000 | 95,973,000 | 96,093,000 | 95,510,000 | 94,468,000 | 90,679,000 | 88,564,000 | 85,376,000 | 86,962,000 | 83,882,000 | 81,744,000 | 77,947,000 | 77,663,000 | 74,787,000 |
| 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 |
| Return on total capital | 12.18% | 12.08% | 11.67% | 11.62% | 11.75% | 11.54% | 11.40% | 11.50% | 11.37% | 11.38% | 11.39% | 10.93% | 10.26% | 9.80% | 8.73% | 8.27% | 7.96% | 7.54% | 6.84% | 6.60% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $13,118,000K ÷ ($92,134,000K + $15,587,000K)
= 12.18%
Based on the provided data, Charter Communications Inc's return on total capital has shown a consistent increasing trend over the past few years, reflecting the company's improving efficiency in generating profits relative to its total capital employed.
The return on total capital has increased from 6.60% as of March 31, 2020, to 12.18% as of December 31, 2024. This upward trajectory indicates that Charter Communications Inc has been able to utilize its total capital more effectively to generate higher returns for its shareholders.
Notably, there have been fluctuations in the return on total capital over the quarters, with some periods showing more significant growth compared to others. However, the overall trend reveals a positive performance in terms of generating returns on the total capital invested in the business.
The steady improvement in the return on total capital suggests that Charter Communications Inc has been successful in optimizing its capital structure and operational efficiency to drive higher profitability and create value for its stakeholders. This trend is a positive indicator of the company's financial health and management's ability to generate returns on the resources deployed in its operations.
Peer comparison
Dec 31, 2024