Charter Communications Inc (CHTR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	147,193,000	144,523,000	142,491,000	144,206,000	148,188,000
Total stockholders’ equity	US$ in thousands	11,086,000	9,119,000	14,050,000	23,805,000	31,445,000
Financial leverage ratio		13.28	15.85	10.14	6.06	4.71

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $147,193,000K ÷ $11,086,000K
= 13.28

The financial leverage ratio of Charter Communications Inc. has shown an increasing trend over the past five years, indicating a rise in its reliance on debt to finance its operations and growth. The ratio stood at 4.71 in 2019 and has steadily increased to 13.28 in 2023. This suggests that the company's debt levels have been rising relative to its equity over the period under review.

A higher financial leverage ratio typically implies that the company is more leveraged and carries a higher risk due to its increased debt burden. While higher leverage can amplify returns in favorable conditions, it also increases the company's vulnerability to economic downturns or rising interest rates, which could impact its financial stability.

Investors and stakeholders may closely monitor Charter Communications Inc.'s financial leverage ratio to assess its risk profile and ability to meet debt obligations in the future. It is essential for the company to manage its debt levels effectively to maintain a healthy balance between debt and equity financing and ensure sustainable growth in the long term.