Stock Analysis on Net
Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

This company has been moved to the archive! The financial data has not been updated since February 2, 2024.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Charter Communications Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal income taxes 1,304 1,178 12 (7) 6
State income taxes 369 348 230 168 113
Current income tax expense 1,673 1,526 242 161 119
Federal income taxes (208) 55 1,049 536 358
State income taxes 128 32 (223) (71) (38)
Deferred income tax expense (benefit) (80) 87 826 465 320
Income tax expense 1,593 1,613 1,068 626 439

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Charter Communications Inc. current income tax expense increased from 2021 to 2022 and from 2022 to 2023.
Deferred income tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Charter Communications Inc. deferred income tax expense (benefit) decreased from 2021 to 2022 and from 2022 to 2023.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Charter Communications Inc. income tax expense increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Effective Income Tax Rate (EITR)

Charter Communications Inc., effective income tax rate (EITR) reconciliation

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective tax rate 23.24% 21.62% 16.72% 14.55% 18.06%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Charter Communications Inc. effective tax rate increased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Charter Communications Inc., components of deferred tax assets and liabilities

US$ in millions

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Carryforwards 582 375 325 1,344 1,839
Accrued and other 560 512 612 581 664
Gross deferred tax assets 1,142 887 937 1,925 2,503
Valuation allowance (25) (40) (36) (32) (46)
Deferred tax assets 1,117 847 901 1,893 2,457
Investment in partnership (20,061) (19,899) (19,986) (19,996) (20,159)
Accrued and other (10) (6) (11) (5) (9)
Deferred tax liabilities (20,071) (19,905) (19,997) (20,001) (20,168)
Net deferred tax assets (liabilities) (18,954) (19,058) (19,096) (18,108) (17,711)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Charter Communications Inc. gross deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Charter Communications Inc. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Charter Communications Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Charter Communications Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax liabilities 18,954 19,058 19,096 18,108 17,711

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Charter Communications Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Charter Communications Inc., adjustments to financial statements

US$ in millions

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Liabilities
Total liabilities (as reported) 132,475 131,974 124,335 113,925 109,377
Less: Noncurrent deferred tax liabilities, net 18,954 19,058 19,096 18,108 17,711
Total liabilities (adjusted) 113,521 112,916 105,239 95,817 91,666
Adjustment to Total Charter Shareholders’ Equity
Total Charter shareholders’ equity (as reported) 11,086 9,119 14,050 23,805 31,445
Less: Net deferred tax assets (liabilities) (18,954) (19,058) (19,096) (18,108) (17,711)
Total Charter shareholders’ equity (adjusted) 30,040 28,177 33,146 41,913 49,156
Adjustment to Net Income Attributable To Charter Shareholders
Net income attributable to Charter shareholders (as reported) 4,557 5,055 4,654 3,222 1,668
Add: Deferred income tax expense (benefit) (80) 87 826 465 320
Net income attributable to Charter shareholders (adjusted) 4,477 5,142 5,480 3,687 1,988

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Charter Communications Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Charter Communications Inc., adjusted financial ratios

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 8.35% 9.36% 9.01% 6.70% 3.64%
Adjusted net profit margin 8.20% 9.52% 10.60% 7.67% 4.34%
Financial Leverage
Reported financial leverage 13.28 15.85 10.14 6.06 4.71
Adjusted financial leverage 4.90 5.13 4.30 3.44 3.01
Return on Equity (ROE)
Reported ROE 41.11% 55.43% 33.12% 13.53% 5.30%
Adjusted ROE 14.90% 18.25% 16.53% 8.80% 4.04%
Return on Assets (ROA)
Reported ROA 3.10% 3.50% 3.27% 2.23% 1.13%
Adjusted ROA 3.04% 3.56% 3.85% 2.56% 1.34%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Charter Communications Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Charter Communications Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Charter Communications Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Charter Communications Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Charter Communications Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Charter shareholders 4,557 5,055 4,654 3,222 1,668
Revenues 54,607 54,022 51,682 48,097 45,764
Profitability Ratio
Net profit margin1 8.35% 9.36% 9.01% 6.70% 3.64%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Charter shareholders 4,477 5,142 5,480 3,687 1,988
Revenues 54,607 54,022 51,682 48,097 45,764
Profitability Ratio
Adjusted net profit margin2 8.20% 9.52% 10.60% 7.67% 4.34%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income attributable to Charter shareholders ÷ Revenues
= 100 × 4,557 ÷ 54,607 = 8.35%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Charter shareholders ÷ Revenues
= 100 × 4,477 ÷ 54,607 = 8.20%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Charter Communications Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 147,193 144,523 142,491 144,206 148,188
Total Charter shareholders’ equity 11,086 9,119 14,050 23,805 31,445
Solvency Ratio
Financial leverage1 13.28 15.85 10.14 6.06 4.71
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets 147,193 144,523 142,491 144,206 148,188
Adjusted total Charter shareholders’ equity 30,040 28,177 33,146 41,913 49,156
Solvency Ratio
Adjusted financial leverage2 4.90 5.13 4.30 3.44 3.01

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total Charter shareholders’ equity
= 147,193 ÷ 11,086 = 13.28

2 Adjusted financial leverage = Total assets ÷ Adjusted total Charter shareholders’ equity
= 147,193 ÷ 30,040 = 4.90

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Charter Communications Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Charter shareholders 4,557 5,055 4,654 3,222 1,668
Total Charter shareholders’ equity 11,086 9,119 14,050 23,805 31,445
Profitability Ratio
ROE1 41.11% 55.43% 33.12% 13.53% 5.30%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Charter shareholders 4,477 5,142 5,480 3,687 1,988
Adjusted total Charter shareholders’ equity 30,040 28,177 33,146 41,913 49,156
Profitability Ratio
Adjusted ROE2 14.90% 18.25% 16.53% 8.80% 4.04%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income attributable to Charter shareholders ÷ Total Charter shareholders’ equity
= 100 × 4,557 ÷ 11,086 = 41.11%

2 Adjusted ROE = 100 × Adjusted net income attributable to Charter shareholders ÷ Adjusted total Charter shareholders’ equity
= 100 × 4,477 ÷ 30,040 = 14.90%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Charter Communications Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Charter shareholders 4,557 5,055 4,654 3,222 1,668
Total assets 147,193 144,523 142,491 144,206 148,188
Profitability Ratio
ROA1 3.10% 3.50% 3.27% 2.23% 1.13%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Charter shareholders 4,477 5,142 5,480 3,687 1,988
Total assets 147,193 144,523 142,491 144,206 148,188
Profitability Ratio
Adjusted ROA2 3.04% 3.56% 3.85% 2.56% 1.34%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income attributable to Charter shareholders ÷ Total assets
= 100 × 4,557 ÷ 147,193 = 3.10%

2 Adjusted ROA = 100 × Adjusted net income attributable to Charter shareholders ÷ Total assets
= 100 × 4,477 ÷ 147,193 = 3.04%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Charter Communications Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.