Charter Communications Inc (CHTR)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	13,118,000	12,996,000	12,787,000	12,764,000	12,559,000	12,332,000	12,130,000	12,117,000	11,962,000	11,878,000	11,881,000	11,229,000	10,526,000	10,032,000	9,277,000	8,671,000	8,405,000	7,902,000	7,316,000	6,888,000
Interest expense (ttm)	US$ in thousands	34,000	32,000	32,000	31,000	20,000	8,000	-6,000	-17,000	-17,000	-15,000	-15,000	-19,000	-23,000	-30,000	-35,000	-36,000	-41,000	-47,000	-36,000	-25,000
Interest coverage		385.82	406.12	399.59	411.74	627.95	1,541.50	—	—	—	—	—	—	—	—	—	—	—	—	—	—

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,118,000K ÷ $34,000K
= 385.82

The interest coverage ratio for Charter Communications Inc provides insight into the company's ability to meet its interest obligations.

The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that the company is more capable of covering its interest payments from its operating income.

Based on the provided data, Charter Communications Inc had an interest coverage ratio of "1,541.50" for the quarter ending September 30, 2023. This indicates that the company was generating significant earnings in comparison to its interest expenses during that period.

Subsequently, the interest coverage ratios for the following quarters showed a decreasing trend, with ratios of "627.95" for December 31, 2023, "411.74" for March 31, 2024, "399.59" for June 30, 2024, "406.12" for September 30, 2024, and "385.82" for December 31, 2024.

The declining trend in the interest coverage ratio suggests a potential decrease in the company's ability to cover its interest expenses with its operating earnings. This could indicate a deteriorating financial health or a reduction in profitability during these quarters.

It would be prudent for investors and stakeholders to closely monitor Charter Communications Inc's financial performance and scrutinize any factors that may have contributed to the decline in interest coverage ratio to assess the company's overall financial stability and risk management.