Charter Communications Inc (CHTR)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 6,511,000 | 5,991,000 | 5,785,000 | 5,604,000 |
| Long-term debt | US$ in thousands | 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 | 75,578,000 | 71,390,000 | 71,784,000 | 70,567,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 31,445,000 | 32,974,000 | 35,286,000 | 35,734,000 |
| Return on total capital | 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% | 6.08% | 5.74% | 5.40% | 5.27% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 positive trend over the past eight quarters. The return on total capital has ranged from 10.49% in Q1 2022 to 11.55% in Q1 2023, indicating a generally strong performance in utilizing its total capital to generate profits. The average return on total capital for this period is approximately 11.33%.
This consistent performance suggests that Charter Communications Inc. has been effectively utilizing its total capital to generate returns for its shareholders and other capital providers. The increasing trend in return on total capital indicates improving efficiency in deploying total capital to generate profits over time. However, it is important to continue monitoring this ratio to ensure sustained performance and value creation for stakeholders.
Peer comparison
Dec 31, 2023