Charter Communications Inc (CHTR)

Financial leverage ratio

		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
Total assets	US$ in thousands	147,193,000	146,682,000	145,615,000	144,870,000	144,523,000	143,669,000	143,258,000	143,948,000	142,491,000	142,495,000	144,026,000	143,439,000	144,206,000	144,193,000	145,136,000	146,552,000	148,188,000	145,267,000	146,085,000	147,257,000
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
Financial leverage ratio		13.28	13.22	13.92	15.38	15.85	16.16	14.50	11.94	10.14	8.37	7.45	6.83	6.06	5.36	4.94	4.95	4.71	4.41	4.14	4.12

December 31, 2023 calculation

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

Charter Communications Inc.'s financial leverage ratio has exhibited fluctuations over the past eight quarters. The ratio has ranged from a low of 11.94 in Q1 2022 to a high of 16.16 in Q3 2022, with the most recent value recorded at 13.28 in Q4 2023. This indicates that the company has been utilizing debt as a significant component of its capital structure to finance its operations and growth.

A financial leverage ratio above 1 suggests that the company is relying more on debt than equity to fund its operations. Charter Communications Inc.'s consistently high financial leverage ratios over the quarters indicate a relatively aggressive utilization of debt, which could potentially magnify returns, but also increase financial risk.

The decreasing trend in the financial leverage ratio from Q2 2022 to Q4 2023 may imply a movement towards a more conservative capital structure, potentially signaling a shift towards reducing debt levels or increasing equity financing. It is important to closely monitor this trend to assess the company's risk exposure and evaluate its ability to meet its financial obligations.