Consolidated Communications (CNSL)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,108,273	1,129,071	1,142,036	1,165,264	1,189,461	1,211,965	1,233,930	1,250,822	1,260,849	1,249,993	1,258,475	1,268,369	1,284,566	1,307,977	1,314,817	1,322,890	1,336,839	1,350,554	1,364,712	1,381,684
Property, plant and equipment	US$ in thousands	2,449,010	—	2,390,070	2,330,540	2,234,120	2,175,560	2,101,130	1,983,820	2,019,440	1,905,660	1,831,150	1,772,680	1,760,150	1,782,180	1,793,340	1,806,940	1,835,880	1,861,030	1,872,310	1,897,060
Fixed asset turnover		0.45	—	0.48	0.50	0.53	0.56	0.59	0.63	0.62	0.66	0.69	0.72	0.73	0.73	0.73	0.73	0.73	0.73	0.73	0.73

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,108,273K ÷ $2,449,010K
= 0.45

Consolidated Communications Holdings Inc's fixed asset turnover has shown a declining trend over the past eight quarters, decreasing from 0.63 in Q1 2022 to 0.45 in Q4 2023. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

A lower fixed asset turnover ratio indicates that the company is not efficiently using its fixed assets to generate sales. It could be due to various reasons such as underutilization of assets, inefficient asset management, or a decrease in sales relative to fixed assets.

The declining trend in fixed asset turnover could be a concern for investors and stakeholders as it may signify inefficiencies in the company's asset management or declining revenue generation capabilities from fixed assets.

It is important for the company to analyze the root causes of the decreasing fixed asset turnover ratio and take necessary actions to improve efficiency in asset utilization to enhance profitability and overall financial performance in the future.