Charter Communications Inc (CHTR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.65 | 0.65 | 0.66 | 0.66 | 0.66 | 0.66 | 0.66 | 0.63 | 0.62 | 0.60 | 0.60 | 0.58 | 0.57 | 0.54 | 0.54 | 0.51 | 0.51 | 0.49 | 0.49 | 0.48 |
| Debt-to-capital ratio | 0.90 | 0.90 | 0.90 | 0.91 | 0.91 | 0.91 | 0.91 | 0.88 | 0.86 | 0.83 | 0.82 | 0.80 | 0.77 | 0.74 | 0.73 | 0.72 | 0.71 | 0.68 | 0.67 | 0.66 |
| Debt-to-equity ratio | 8.64 | 8.63 | 9.18 | 10.19 | 10.54 | 10.74 | 9.56 | 7.52 | 6.30 | 5.01 | 4.50 | 3.99 | 3.43 | 2.90 | 2.65 | 2.52 | 2.40 | 2.17 | 2.03 | 1.97 |
| 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 |
Charter Communications Inc.'s solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.67-0.68 over the past few quarters, suggesting that about 67-68% of the company's assets are financed by debt.
The debt-to-capital ratio, which reflects the proportion of debt in the company's capital structure, has also been consistent at around 0.90-0.91. This indicates that Charter Communications relies on debt for approximately 90-91% of its capital.
The debt-to-equity ratio shows a significant increase from Q1 2022 to Q1 2023, reaching a high of 10.40 before slightly decreasing. This indicates that Charter has been increasingly relying on debt rather than equity to finance its operations.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, shows an increasing trend from Q1 2022 to Q1 2023. This suggests that the company's financial risk and leverage have been on the rise over the past year.
Overall, Charter Communications Inc.'s solvency ratios paint a picture of a company that is increasingly relying on debt to fund its operations and investments, which could indicate higher financial risk and potential challenges in meeting long-term obligations. It would be important for the company to closely monitor its debt levels and financial leverage to ensure sustainable growth and stability in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 627.95 | 1,541.50 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Interest coverage measures a company's ability to pay interest expenses on its debt using its operating income. A higher ratio indicates that the company is more capable of servicing its debt obligations. In the case of Charter Communications Inc., the interest coverage ratio has been relatively stable over the past eight quarters, ranging from 2.41 to 2.81. This suggests that the company has consistently generated sufficient operating income to cover its interest expenses. The slight fluctuation in the ratio may be attributed to changes in operating income and interest expenses over the quarters. Overall, Charter Communications Inc. appears to have a healthy interest coverage ratio, indicating a solid ability to meet its debt obligations.