Revenue Analysis:
Total and Operating Revenue: Over the last three years, CHTR’s total revenue peaked in 2024 at $13.679 billion, showing a consistent growth from $13.653 billion in 2023. Operating revenue also showed similar trends, rising to $12.98 billion in 2024 from $12.97 billion in 2023.
Gross Profit Margins: Gross profit was highest in 2024 at $6.203 billion, compared to $6.249 billion in 2023. This suggests a slight fluctuation but general stability in gross profit margins.
Cost Management:
Cost of Revenue: The cost of revenue was highest in 2023 at around $7.576 billion and decreased to $7.476 billion in 2024, indicating better cost management and efficiency.
Operating Expense: Operating expense showed an increase in 2024 at $3.11 billion compared to $3.052 billion in 2023, reflecting potential areas to improve cost efficiency.
Total Expenses: Total expenses were highest in 2024 at $10.586 billion, expanding slightly from $10.417 billion in 2023, suggesting overall rising operational costs.
Profitability Analysis:
EBITDA: EBITDA stood at $5.232 billion in 2024, incrementally higher than the $5.027 billion in 2024.
Operating Income: Operating income increased to $3.093 billion in 2024 from $2.926 billion in 2023, indicating stronger operational profitability.
Pretax Income: Pretax income showed growth, rising to $1.726 billion in 2024 from $1.557 billion in 2023.
Net Income: Net income available to common stockholders remained fairly steady, amounting to $1.106 billion in 2024, showing minimal variance over the year.
Cash Flow Indicators:
Reconciled Depreciation: Depreciation stood at $2.19 billion in 2024, showing effective capital expense management and alignment with previous years.
Interest Expense: Interest expense was consistent, at around $1.316 billion in 2024.
Taxation:
Tax Rate: The tax rate indicated slight fluctuations, with a rate of approximately 25.84% in 2024.
Tax Provision: The tax provision was $446 million in 2024, compared to $374 million in 2023, indicating higher taxable income.
Tax Effect of Unusual Items: There has been varied effects of unusual items on taxes over the years, reaching around $8.785 million in 2024.
Shareholder Metrics:
Diluted and Basic EPS: Both diluted and basic EPS increased in 2024 to 7.55 and 7.66 respectively, reflecting a solid return per share for stockholders.
Average Shares: There’s a slight decrease in both diluted and basic average shares, which were around 146.64 million and 144.51 million respectively in 2024, indicating potential share buybacks or reduced share issuance.
Net Income Available to Common Stockholders: This metric has remained stable, retaining around $1.106 billion in 2024.
Conclusion:
CHTR has shown consistent growth in revenue with an improving trend in profitability evidenced by increases in pretax income, operating income and EBITDA. However, there is a noted increase in total and operating expenses, indicating possible areas for cost optimization. Shareholder returns in terms of EPS are increasing, which is a positive signal. Continued focus on cost management and leveraging increasing revenues could enhance profitability in future periods.