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Charter Communications Financial Strength

: 3 (As of Jun. 2022)
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Charter Communications has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Charter Communications Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Charter Communications's Interest Coverage for the quarter that ended in Jun. 2022 was 2.85. Charter Communications's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.77. As of today, Charter Communications's Altman Z-Score is 0.84.


Competitive Comparison

For the Telecom Services subindustry, Charter Communications's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Charter Communications's Financial Strength falls into.



Charter Communications Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Charter Communications's Interest Expense for the months ended in Jun. 2022 was $-1,109 Mil. Its Operating Income for the months ended in Jun. 2022 was $3,165 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $94,468 Mil.

Charter Communications's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*3165/-1109
=2.85

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Charter Communications Inc interest coverage is 2.81, which is low.

2. Debt to revenue ratio. The lower, the better.

Charter Communications's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1814 + 94468) / 54392
=1.77

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Charter Communications has a Z-score of 0.84, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.84 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Charter Communications  (NAS:CHTR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Charter Communications has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Charter Communications Financial Strength Related Terms

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


Charter Communications Business Description

Charter Communications logo
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 54 million U.S. homes and businesses, around 40% 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 U.S. 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
Fischer Jessica M officer: Chief Financial Officer 400 WASHINGTON BLVD. STAMFORD CT 06902
Meyer James E director 6922 HOLLYWOOD BLVD., 12TH FLOOR LOS ANGELES CA 90028
Newhouse Michael A director CHARTER COMMUNICATIONS, INC. 400 ATLANTIC STREET, 10TH FLOOR STAMFORD CT 06901
Newhouse Broadcasting Corp director, 10 percent owner C/O SABIN BERMANT & GOULD 350 MADISON AVENUE NEW YORK NY 10017
Advance Publications, Inc director, 10 percent owner 950 FINGERBOARD ROAD STATEN ISLAND NY 10305
Advance/newhouse Partnership director, 10 percent owner 5015 CAMPUSWOOD DR. EAST SYRACUSE NY 13057
Advance Long-term Management Trust director, 10 percent owner FOUR TIMES SQUARE NEW YORK NY 10036
Newhouse Family Holdings, L.p. director, 10 percent owner FOUR TIMES SQUARE NEW YORK NY 10036
Goodman Kim C director 110 SE 6TH STREET, 29TH FLOOR FORT LAUDERDALE FL 33301
Ellen David officer: Senior Executive VicePresident 1111 STEWART AVENUE BETHPAGE NY 11714
Ramos Mauricio director 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Miron Steven A director DISCOVERY COMMUNICATIONS, INC. 1 DISCOVERY PLACE SILVER SPRING MD 20910
Digeronimo Richard J officer: EVP, Product and Strategy CHARTER COMMUNICATIONS, INC. 400 ATLANTIC STREET STAMFORD CT 06901
Liberty Broadband Corp 10 percent owner 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Nuzzo James officer: EVP, Business Planning 400 ATLANTIC STREET STAMFORD CT 06901

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