Charter Communications Inc (CHTR)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.90	0.91	0.86	0.77	0.71

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $95,777,000K ÷ ($95,777,000K + $11,086,000K)
= 0.90

The debt-to-capital ratio of Charter Communications Inc. has been increasing over the past five years, indicating a rising reliance on debt in the company's capital structure. In 2019, the ratio stood at 0.72, and it has since climbed steadily to 0.90 by the end of 2023. This trend suggests that Charter Communications has been taking on more debt relative to its total capital over time.

A higher debt-to-capital ratio can signal greater financial risk, as the company may face challenges in servicing its debt obligations during economic downturns or when faced with unexpected expenses. Conversely, debt can also be used strategically to finance growth opportunities or capital expenditures.

It would be prudent to further investigate the reasons behind the increasing debt-to-capital ratio to assess the company's financial health and evaluate its ability to manage debt effectively in the long term.