Charter Communications EBITDA vs. Current Ratio
| CHTR Stock | USD 276.33 1.80 0.65% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 20.6 B | Current Value 21.7 B | Quarterly Volatility 8.2 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.53 | 0.4552 |
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For Charter Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Charter Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Charter Communications utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Charter Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Charter Communications over time as well as its relative position and ranking within its peers.
Charter |
Charter Communications' Revenue Breakdown by Earning Segment
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Is Charter Communications' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Charter Communications. If investors know Charter will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Charter Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.135 | Earnings Share 30.89 | Revenue Per Share 370.453 | Quarterly Revenue Growth 0.002 | Return On Assets 0.0531 |
The market value of Charter Communications is measured differently than its book value, which is the value of Charter that is recorded on the company's balance sheet. Investors also form their own opinion of Charter Communications' value that differs from its market value or its book value, called intrinsic value, which is Charter Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Charter Communications' market value can be influenced by many factors that don't directly affect Charter Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Charter Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Charter Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Charter Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Charter Communications Current Ratio vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Charter Communications's current stock value. Our valuation model uses many indicators to compare Charter Communications value to that of its competitors to determine the firm's financial worth. Charter Communications is number one stock in ebitda category among related companies. It is number one stock in current ratio category among related companies . The ratio of EBITDA to Current Ratio for Charter Communications is about 64,509,375,000 . At this time, Charter Communications' EBITDA is relatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Charter Communications by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Charter Communications' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Charter Communications' earnings, one of the primary drivers of an investment's value.Charter Current Ratio vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Charter Communications |
| = | 20.64 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Charter Communications |
| = | 0.32 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Charter Current Ratio Comparison
Charter Communications is currently under evaluation in current ratio category among related companies.
Charter Communications Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Charter Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Charter Communications will eventually generate negative long term returns. The profitability progress is the general direction of Charter Communications' change in net profit over the period of time. It can combine multiple indicators of Charter Communications, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -28.5 B | -27.1 B | |
| Operating Income | 12.6 B | 13.2 B | |
| Income Before Tax | 6.9 B | 7.2 B | |
| Total Other Income Expense Net | -248 M | -260.4 M | |
| Net Income | 5.3 B | 5.5 B | |
| Income Tax Expense | 1.6 B | 1.7 B | |
| Net Income Applicable To Common Shares | 5.8 B | 3.3 B | |
| Net Income From Continuing Ops | 5.4 B | 3.1 B | |
| Non Operating Income Net Other | 64.4 M | 67.6 M | |
| Interest Income | 4.6 B | 3.2 B | |
| Net Interest Income | -5.1 B | -5.4 B | |
| Change To Netincome | 673.9 M | 707.6 M | |
| Net Income Per Share | 30.54 | 32.07 | |
| Income Quality | 2.74 | 2.88 | |
| Net Income Per E B T | 0.66 | 1.13 |
Charter Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Charter Communications. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Charter Communications position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Charter Communications' important profitability drivers and their relationship over time.
Use Charter Communications in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Charter Communications position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Charter Communications will appreciate offsetting losses from the drop in the long position's value.Charter Communications Pair Trading
Charter Communications Pair Trading Analysis
The ability to find closely correlated positions to Charter Communications could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Charter Communications when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Charter Communications - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Charter Communications to buy it.
The correlation of Charter Communications is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Charter Communications moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Charter Communications moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Charter Communications can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Charter Communications position
In addition to having Charter Communications in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. To learn how to invest in Charter Stock, please use our How to Invest in Charter Communications guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Complementary Tools for Charter Stock analysis
When running Charter Communications' price analysis, check to measure Charter Communications' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Charter Communications is operating at the current time. Most of Charter Communications' value examination focuses on studying past and present price action to predict the probability of Charter Communications' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Charter Communications' price. Additionally, you may evaluate how the addition of Charter Communications to your portfolios can decrease your overall portfolio volatility.
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To fully project Charter Communications' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Charter Communications at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Charter Communications' income statement, its balance sheet, and the statement of cash flows.