Charter Communications Inc (CHTR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.65 | 0.66 | 0.62 | 0.57 | 0.51 |
| Debt-to-capital ratio | 0.90 | 0.91 | 0.86 | 0.77 | 0.71 |
| Debt-to-equity ratio | 8.64 | 10.54 | 6.30 | 3.43 | 2.40 |
| Financial leverage ratio | 13.28 | 15.85 | 10.14 | 6.06 | 4.71 |
Charter Communications Inc.'s solvency ratios indicate the company's ability to meet its financial obligations and manage its debt levels over the years. The debt-to-assets ratio has shown a fluctuating trend, increasing from 0.53 in 2019 to 0.66 in 2023. This suggests that Charter has been utilizing more debt relative to its total assets to finance its operations.
Similarly, the debt-to-capital ratio has shown an upward trend, reaching 0.90 in 2023 from 0.72 in 2019. This increase indicates that the company is relying more on debt financing compared to its total capital structure.
The debt-to-equity ratio has exhibited significant fluctuations, with a substantial increase from 2.51 in 2019 to 8.82 in 2023. This surge suggests that Charter has increased its debt levels relative to shareholders' equity, indicating higher financial risk.
Moreover, the financial leverage ratio has also shown a consistent increase over the years, reaching 13.28 in 2023 from 4.71 in 2019. This implies that Charter has been leveraging its financial resources more aggressively to support its business activities, leading to higher financial leverage.
Overall, Charter Communications Inc.'s solvency ratios indicate a trend of increasing reliance on debt financing, which may raise concerns about the company's financial stability and ability to manage its debt burden effectively in the long run. Investors and stakeholders should carefully monitor these ratios to assess the company's solvency and financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 627.95 | — | — | — | — |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating income.
For Charter Communications Inc., we observe a generally improving trend in the interest coverage ratio over the past five years. The interest coverage ratio increased from 1.71 in 2019 to 2.41 in 2023, which suggests that the company's ability to cover its interest expenses with operating income has been strengthening.
In 2023, Charter Communications Inc. had an interest coverage ratio of 2.41, indicating that the company earned 2.41 times the amount of interest expenses it had to pay during that period. This implies that Charter Communications Inc. is in a better position to meet its interest payment obligations compared to the previous years.
Overall, the trend of increasing interest coverage ratios for Charter Communications Inc. reflects positively on the company's financial health and ability to service its debt obligations. It indicates that Charter Communications Inc. has been effectively managing its interest expenses relative to its operating income, providing a cushion against potential financial risks related to debt servicing.