Consolidated Communications (CNSL)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.05 | 21.23 | 13.14 | 22.04 | 20.07 | |
| Number of days of payables | days | 30.30 | 17.19 | 27.79 | 16.56 | 18.19 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.05
= 30.30
Consolidated Communications Holdings Inc's number of days of payables has shown fluctuations over the past five years. The number of days of payables increased from 19.64 days in 2019 to 26.24 days in 2021, indicating a lengthening of the time it takes for the company to pay its suppliers. Subsequently, there was a decrease to 22.10 days in 2022, followed by a significant increase to 42.84 days in 2023.
The increase in the number of days of payables in 2023 suggests that the company is taking longer to settle its outstanding payables, which may be a reflection of changes in the company's payment terms or cash flow management. A higher number of days of payables can sometimes indicate liquidity challenges or inefficiencies in working capital management, potentially impacting the company's relationships with suppliers.
It would be beneficial for stakeholders to further investigate the reasons behind the increase in the number of days of payables in 2023 to assess the implications on the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023