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CHTR (Charter Communications) Gross Margin % : 39.88% (As of Sep. 2024)


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What is Charter Communications Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Charter Communications's Gross Profit for the three months ended in Sep. 2024 was $5,501 Mil. Charter Communications's Revenue for the three months ended in Sep. 2024 was $13,795 Mil. Therefore, Charter Communications's Gross Margin % for the quarter that ended in Sep. 2024 was 39.88%.


The historical rank and industry rank for Charter Communications's Gross Margin % or its related term are showing as below:

CHTR' s Gross Margin % Range Over the Past 10 Years
Min: 40.57   Med: 43.3   Max: 47.91
Current: 47.91


During the past 13 years, the highest Gross Margin % of Charter Communications was 47.91%. The lowest was 40.57%. And the median was 43.30%.

CHTR's Gross Margin % is ranked worse than
53.01% of 349 companies
in the Telecommunication Services industry
Industry Median: 49.45 vs CHTR: 47.91

Charter Communications had a gross margin of 39.88% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Charter Communications was 1.50% per year.


Charter Communications Gross Margin % Historical Data

The historical data trend for Charter Communications's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Charter Communications Gross Margin % Chart

Charter Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.79 44.07 45.39 45.78 45.52

Charter Communications Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.91 66.18 45.35 40.28 39.88

Competitive Comparison of Charter Communications's Gross Margin %

For the Telecom Services subindustry, Charter Communications's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Charter Communications's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Charter Communications's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Charter Communications's Gross Margin % falls into.



Charter Communications Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Charter Communications's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=24855 / 54607
=(Revenue - Cost of Goods Sold) / Revenue
=(54607 - 29752) / 54607
=45.52 %

Charter Communications's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=5501 / 13795
=(Revenue - Cost of Goods Sold) / Revenue
=(13795 - 8294) / 13795
=39.88 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Charter Communications  (NAS:CHTR) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Charter Communications had a gross margin of 39.88% for the quarter that ended in Sep. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Charter Communications Gross Margin % Related Terms

Thank you for viewing the detailed overview of Charter Communications's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Charter Communications Business Description

Address
400 Washington Boulevard, Stamford, CT, USA, 06902
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 58 million US homes and businesses, around 35% of the country. Across this footprint, Charter serves 29 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.
Executives
Craig A Jacobson director C/O EXPEDIA, INC., 333 108TH AVENUE NE, BELLEVUE WA 98004
Christopher L Winfrey officer: EVP/Chief Financial Officer CHARTER COMMUNICATIONS, INC., 12405 POWERSCOURT DRIVE, ST. LOUIS MO 63131
Thomas Rutledge director, officer: President and CEO 400 WASHINGTON BLVD., STAMFORD CT 06902
Jamal H Haughton officer: EVP/Gen Counsel/Corp Secretary TWO PENNSYLVANIA PLAZA, NEW YORK NY 10121
Gregory B Maffei director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Richard Adam Ray officer: EVP, Chief Commercial Officer 400 WASHINGTON BLVD, STAMFORD CT 06902
Steven A Miron director DISCOVERY COMMUNICATIONS, INC., 1 DISCOVERY PLACE, SILVER SPRING MD 20910
Eric Louis Zinterhofer director C/O SEARCHLIGHT CAPITAL PARTNERS GP, LP, 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Jonathan Hargis officer: EVP/Chief Marketing Officer 400 WASHINGTON BLVD., STAMFORD CT 06902
Jessica M Fischer officer: Chief Financial Officer 400 WASHINGTON BLVD., STAMFORD CT 06902
John Bickham officer: EVP/Chief Operating Officer 12405 POWERSCOURT DRIVE, ST. LOUIS MO 63131
Richard R Dykhouse officer: SVP/Gen Counsel/Corp Secretary 12405 POWERSCOURT DRIVE, ST. LOUIS MO 63131
David C Merritt director CHARTER COMMUNICATIONS INC, 12405 POWERSCOURT DRIVE, ST LOUIS MO 63131
David Ellen officer: Senior Executive VicePresident 1111 STEWART AVENUE, BETHPAGE NY 11714
Balan Nair director 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806