Consolidated Communications (CNSL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,098,700	1,182,490	1,248,400	1,276,540	1,334,130
Property, plant and equipment	US$ in thousands	2,449,010	2,234,120	2,019,440	1,760,150	1,835,880
Fixed asset turnover		0.45	0.53	0.62	0.73	0.73

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,098,700K ÷ $2,449,010K
= 0.45

Consolidated Communications Holdings Inc's fixed asset turnover has shown a declining trend over the past five years, decreasing from 0.73 in 2019 to 0.45 in 2023. This ratio indicates the company's ability to generate sales revenue from its investment in fixed assets. A lower fixed asset turnover ratio may suggest inefficiency in asset utilization or decreasing productivity of fixed assets in generating revenue. It could be a sign of excess capacity or underutilization of fixed assets. Management may need to evaluate and optimize the use of fixed assets to improve efficiency and profitability in the long term.