Charter Communications Inc (CHTR)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 12,559,000 | 11,962,000 | 10,526,000 | 8,405,000 | 6,511,000 |
| Interest expense | US$ in thousands | 20,000 | -17,000 | -23,000 | -41,000 | -101,000 |
| Interest coverage | 627.95 | — | — | — | — |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $12,559,000K ÷ $20,000K
= 627.95
The interest coverage ratio of Charter Communications Inc. has shown a fluctuating trend over the past five years. The ratio stood at 1.71 in 2019, indicating that the company's operating income was able to cover its interest expenses 1.71 times. This ratio improved to 2.20 in 2020 before reaching 2.69 in both 2021 and 2022. In the latest period of December 31, 2023, the interest coverage ratio decreased slightly to 2.41.
Overall, the company's interest coverage ratio has generally been above 2 over the past five years, indicating that Charter Communications Inc. has had a healthy ability to meet its interest obligations with its operating income. However, the recent decrease in the ratio compared to the previous two years may warrant further monitoring to ensure the company's continued ability to comfortably cover its interest expenses.
Peer comparison
Dec 31, 2023