Charter Communications Inc (CHTR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.61 | 0.65 | 0.66 | 0.62 | 0.57 |
| Debt-to-capital ratio | 0.86 | 0.90 | 0.91 | 0.86 | 0.77 |
| Debt-to-equity ratio | 5.91 | 8.64 | 10.54 | 6.30 | 3.43 |
| Financial leverage ratio | 9.62 | 13.28 | 15.85 | 10.14 | 6.06 |
Charter Communications Inc's solvency ratios show trends in the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has been increasing over the years, from 0.57 in 2020 to 0.61 in 2024, indicating that a larger proportion of the company's assets are financed by debt.
The Debt-to-capital ratio has also shown an increasing trend, from 0.77 in 2020 to 0.86 in 2024. This suggests that Charter Communications Inc is relying more on debt to fund its operations compared to its capital.
The Debt-to-equity ratio surged significantly from 3.43 in 2020 to 10.54 in 2022, before decreasing to 5.91 in 2024. This indicates a fluctuating level of reliance on debt versus equity for financing the company's assets.
The Financial leverage ratio has followed a similar pattern to the Debt-to-equity ratio, increasing sharply from 6.06 in 2020 to 15.85 in 2022, before declining to 9.62 in 2024. This ratio reflects the extent to which Charter Communications Inc is using debt to support its operations.
Overall, these ratios suggest that Charter Communications Inc's solvency position has been impacted by increasing levels of debt in relation to assets, capital, and equity. It will be important for the company to closely monitor and manage its debt levels to maintain a healthy financial position in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 385.82 | 627.95 | — | — | — |
The interest coverage ratio for Charter Communications Inc indicates the company's ability to cover its interest expenses with its operating income. As per the data provided, the interest coverage ratio for the company was not determinable for the years ending December 31, 2020, 2021, and 2022. However, there was a noticeable improvement in the interest coverage ratio in the subsequent years, reaching 627.95 as of December 31, 2023, and 385.82 as of December 31, 2024.
A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations from its operating income. The significant increase in the interest coverage ratio over the years indicates an improved financial position for Charter Communications Inc, as it demonstrates a stronger ability to service its debt and indicates lower financial risk. This trend bodes well for the company's financial stability and ability to manage its debt obligations effectively.