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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Charter Communications Inc., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net operating profit after taxes (NOPAT)¹	9,377)	9,688)	9,333)	7,242)	5,341)
Cost of capital²	7.42%	8.04%	8.80%	9.37%	9.50%
Invested capital³	133,644)	131,318)	130,911)	133,151)	137,438)

Economic profit⁴	(545)	(867)	(2,185)	(5,234)	(7,711)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 9,377 – 7.42% × 133,644 = -545

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Charter Communications Inc. economic profit increased from 2021 to 2022 and from 2022 to 2023.

Charter Communications Inc., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Charter shareholders	4,557)	5,055)	4,654)	3,222)	1,668)
Deferred income tax expense (benefit)¹	(80)	87)	826)	465)	320)
Increase (decrease) in allowance for doubtful accounts²	49)	62)	(60)	43)	22)
Increase (decrease) in deferred revenue³	(2)	50)	19)	(23)	(34)
Increase (decrease) in equity equivalents⁴	(33)	199)	785)	485)	308)
Interest expense, net	5,188)	4,556)	4,037)	3,848)	3,797)
Interest expense, operating lease liability⁵	64)	51)	49)	52)	52)
Adjusted interest expense, net	5,252)	4,607)	4,086)	3,900)	3,849)
Tax benefit of interest expense, net⁶	(1,103)	(967)	(858)	(819)	(808)
Adjusted interest expense, net, after taxes⁷	4,149)	3,640)	3,228)	3,081)	3,041)
Net income (loss) attributable to noncontrolling interest	704)	794)	666)	454)	324)
Net operating profit after taxes (NOPAT)	9,377)	9,688)	9,333)	7,242)	5,341)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for doubtful accounts.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in equity equivalents to net income attributable to Charter shareholders.

⁵ 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,418 × 4.50% = 64

⁶ 2023 Calculation
Tax benefit of interest expense, net = Adjusted interest expense, net × Statutory income tax rate
= 5,252 × 21.00% = 1,103

⁷ Addition of after taxes interest expense to net income attributable to Charter shareholders.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Charter Communications Inc. NOPAT increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Charter Communications Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Income tax expense	1,593)	1,613)	1,068)	626)	439)
Less: Deferred income tax expense (benefit)	(80)	87)	826)	465)	320)
Add: Tax savings from interest expense, net	1,103)	967)	858)	819)	808)
Cash operating taxes	2,776)	2,493)	1,100)	980)	927)

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).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Charter Communications Inc. cash operating taxes increased from 2021 to 2022 and from 2022 to 2023.

Charter Communications Inc., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current portion of long-term debt	2,000)	1,510)	2,997)	1,008)	3,500)
Long-term debt, less current portion	95,777)	96,093)	88,564)	81,744)	75,578)
Operating lease liability¹	1,418)	1,378)	1,451)	1,345)	1,193)
Total reported debt & leases	99,195)	98,981)	93,012)	84,097)	80,271)
Total Charter shareholders’ equity	11,086)	9,119)	14,050)	23,805)	31,445)
Net deferred tax (assets) liabilities²	18,954)	19,058)	19,096)	18,108)	17,711)
Allowance for doubtful accounts³	268)	219)	157)	194)	151)
Deferred revenue⁴	509)	511)	490)	471)	494)
Equity equivalents⁵	19,731)	19,788)	19,743)	18,773)	18,356)
Accumulated other comprehensive (income) loss, net of tax⁶	—)	—)	—)	—)	—)
Noncontrolling interests	3,632)	3,430)	4,106)	6,476)	7,366)
Adjusted total Charter shareholders’ equity	34,449)	32,337)	37,899)	49,054)	57,167)
Invested capital	133,644)	131,318)	130,911)	133,151)	137,438)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenue.

⁵ Addition of equity equivalents to total Charter shareholders’ equity.

⁶ Removal of accumulated other comprehensive income.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Charter Communications Inc. invested capital increased from 2021 to 2022 and from 2022 to 2023.

Charter Communications Inc., cost of capital calculations

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	46,357)	46,357)	÷	135,504)	=	0.34	0.34	×	13.67%	=	4.68%
Long-term debt, including current portion³	87,729)	87,729)	÷	135,504)	=	0.65	0.65	×	5.30% × (1 – 21.00%)	=	2.71%
Operating lease liability⁴	1,418)	1,418)	÷	135,504)	=	0.01	0.01	×	4.50% × (1 – 21.00%)	=	0.04%
Total:	135,504)					1.00					7.42%

Based on: 10-K (reporting date: 2023-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current portion. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	60,207)	60,207)	÷	144,383)	=	0.42	0.42	×	13.67%	=	5.70%
Long-term debt, including current portion³	82,798)	82,798)	÷	144,383)	=	0.57	0.57	×	5.10% × (1 – 21.00%)	=	2.31%
Operating lease liability⁴	1,378)	1,378)	÷	144,383)	=	0.01	0.01	×	3.70% × (1 – 21.00%)	=	0.03%
Total:	144,383)					1.00					8.04%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current portion. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	101,999)	101,999)	÷	203,091)	=	0.50	0.50	×	13.67%	=	6.86%
Long-term debt, including current portion³	99,641)	99,641)	÷	203,091)	=	0.49	0.49	×	4.94% × (1 – 21.00%)	=	1.91%
Operating lease liability⁴	1,451)	1,451)	÷	203,091)	=	0.01	0.01	×	3.40% × (1 – 21.00%)	=	0.02%
Total:	203,091)					1.00					8.80%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current portion. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	117,703)	117,703)	÷	213,274)	=	0.55	0.55	×	13.67%	=	7.54%
Long-term debt, including current portion³	94,226)	94,226)	÷	213,274)	=	0.44	0.44	×	5.18% × (1 – 21.00%)	=	1.81%
Operating lease liability⁴	1,345)	1,345)	÷	213,274)	=	0.01	0.01	×	3.90% × (1 – 21.00%)	=	0.02%
Total:	213,274)					1.00					9.37%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current portion. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	108,654)	108,654)	÷	195,233)	=	0.56	0.56	×	13.67%	=	7.61%
Long-term debt, including current portion³	85,386)	85,386)	÷	195,233)	=	0.44	0.44	×	5.41% × (1 – 21.00%)	=	1.87%
Operating lease liability⁴	1,193)	1,193)	÷	195,233)	=	0.01	0.01	×	4.40% × (1 – 21.00%)	=	0.02%
Total:	195,233)					1.00					9.50%

Based on: 10-K (reporting date: 2019-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current portion. See details »

⁴ Operating lease liability. See details »

Charter Communications Inc., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(545)	(867)	(2,185)	(5,234)	(7,711)
Invested capital²	133,644)	131,318)	130,911)	133,151)	137,438)
Performance Ratio
Economic spread ratio³	-0.41%	-0.66%	-1.67%	-3.93%	-5.61%
Benchmarks
Economic Spread Ratio, Competitors⁴
Alphabet Inc.	19.29%	16.20%	38.49%	19.73%	18.78%
Comcast Corp.	-2.17%	-6.65%	-1.62%	-3.28%	-1.23%
Meta Platforms Inc.	12.63%	6.26%	28.72%	19.93%	13.04%
Netflix Inc.	0.46%	-0.82%	3.50%	-1.89%	-3.72%
Walt Disney Co.	-11.23%	-9.10%	-11.87%	-14.15%	-3.95%

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -545 ÷ 133,644 = -0.41%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Charter Communications Inc. economic spread ratio improved from 2021 to 2022 and from 2022 to 2023.

Charter Communications Inc., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(545)	(867)	(2,185)	(5,234)	(7,711)

Revenues	54,607)	54,022)	51,682)	48,097)	45,764)
Add: Increase (decrease) in deferred revenue	(2)	50)	19)	(23)	(34)
Adjusted revenues	54,605)	54,072)	51,701)	48,074)	45,730)
Performance Ratio
Economic profit margin²	-1.00%	-1.60%	-4.23%	-10.89%	-16.86%
Benchmarks
Economic Profit Margin, Competitors³
Alphabet Inc.	11.89%	9.98%	22.08%	13.21%	11.66%
Comcast Corp.	-3.76%	-11.76%	-3.19%	-7.08%	-2.45%
Meta Platforms Inc.	13.22%	5.47%	22.56%	18.75%	12.07%
Netflix Inc.	0.51%	-0.98%	4.08%	-2.23%	-4.41%
Walt Disney Co.	-21.93%	-18.72%	-30.24%	-38.07%	-9.44%

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).

¹ Economic profit. See details »

² 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × -545 ÷ 54,605 = -1.00%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Charter Communications Inc. economic profit margin improved from 2021 to 2022 and from 2022 to 2023.

Charter Communications Inc. (NASDAQ:CHTR)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin