Charter Communications Inc (CHTR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 13,118,000 | 12,559,000 | 11,962,000 | 10,526,000 | 8,405,000 |
| Interest expense | US$ in thousands | 34,000 | 20,000 | -17,000 | -23,000 | -41,000 |
| Interest coverage | 385.82 | 627.95 | — | — | — |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $13,118,000K ÷ $34,000K
= 385.82
The interest coverage ratio is used to evaluate a company's ability to pay its interest expenses on outstanding debt. In the case of Charter Communications Inc, the data provided indicates that for the years ending December 31, 2020, 2021, and 2022, the interest coverage ratio was not provided. However, for the year ending December 31, 2023, the interest coverage ratio was 627.95, indicating a strong ability to cover interest payments. This high ratio suggests that the company earned significantly more operating income than the interest payable, which is a positive sign for lenders and investors.
Moreover, for the year ending December 31, 2024, the interest coverage ratio decreased to 385.82. Although this ratio is still relatively high, it represents a decline compared to the previous year. Investors and creditors may want to further investigate the reasons behind this decrease to assess whether it is a temporary fluctuation or a potential concern for Charter Communications Inc's ability to meet its interest obligations in the future.
Peer comparison
Dec 31, 2024