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.


Peer comparison

Dec 31, 2023