Analysis Of Charter Communications Prior Its Bankruptcy Essay

Analysis Of Charter Communications Prior Its Bankruptcy Essay

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Analysis of Charter Communications Prior its Bankruptcy
Company Background and History
Charter Communications, Inc. is one of the largest cable providers in the United States. The company started in 1993 and offered cable television and analog video services. Now, Charter provides a variety of television, internet, information, communications solutions, and voice services for both residential and commercial customers. The company operates in 41 states, has about 25,000,000 customers and has 90,000 employees (Charter Communications, 2016). In 1999, Charter acquired many other cable companies such as Greater Media, Renaissance Media Group, Falcon Communications, Avalon Cable, InterLink Communications and recently Time Warner Cable Inc. and Bright House Networks LLC. Charter Communications also went public in 1999. Three years after Microsoft co-founder, Paul Allen purchased a majority of Charter’s stock; the company became a fortune 500 company in 2001. (Charter Communications, 2016). Although Charter has recovered from bankruptcy, the company still has not made any profit as yet. This paper will describe some of the indications of Charter financial difficulties, analyze the financial statement using the Altman Z-score model to predict bankruptcy, provide a clear recommendation for the company.
Charter’s Struggle
Charter Communications has been struggling for decades before it ended file for bankruptcy protection for restructuring. The company experienced a continuous loss for years and had a massive debt of $24,388.00 million or 24.39 billion dollars in 2008. For instance, the continuous losses consisted of $2,451 million, 1,616 million, 1,370 million, 967 million, and $4,341 million respectively in 2008, 2007, 2006, 2005, and 200...


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...intensive activities such as the call service centers. The company needs to increase personnel resources and use its core strength to compete in the industry in which it performs. SWOT analysis is one the best tools that can help to analyze the weakness, strength, opportunity, and threats of the company. One of the Charter strength is its large market presence and customer base. The company should use its strengths to outperform its competitors and increase revenue. Furthermore, for five years, the company reported a strong operating cash flow. When a company has a strong cash flow, it has the ability to pay its expenses and expand. In addition, the company should continue to acquire profitable companies to strengthen its portfolio. Lastly, the organization should use diversification and differentiation strategy to compete against companies such as Comcast and AT&T.

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