Consolidated Communications (CNSL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	723,590	702,665	537,929	557,207	620,788
Payables	US$ in thousands	60,073	33,096	40,953	25,283	30,936
Payables turnover		12.05	21.23	13.14	22.04	20.07

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $723,590K ÷ $60,073K
= 12.05

The payables turnover ratio for Consolidated Communications Holdings Inc has shown fluctuations over the years. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times payables are paid off during a period.

In 2023, the payables turnover ratio decreased to 8.52 from 16.52 in 2022, indicating that the company took longer to pay off its accounts payable compared to the previous year. This could suggest potential issues with liquidity or supplier relationships.

In 2022, the ratio significantly increased to 16.52 from 13.91 in 2021, showing an improvement in payables management efficiency. The company was able to pay off its accounts payable more frequently during this period.

In 2021, the payables turnover ratio decreased slightly to 13.91 from 22.17 in 2020, indicating a longer payment cycle compared to the previous year. This could be due to changes in supplier terms or company policies.

In 2020, the ratio was 22.17, showing a high turnover rate and efficient management of payables. The company was able to pay off its accounts payable more frequently during this period, which is generally a positive sign.

In 2019, the payables turnover ratio was 18.58, indicating efficient management of payables similar to 2020. The company maintained a good balance in paying off its accounts payable during this period.

Overall, fluctuations in the payables turnover ratio over the years suggest variations in the company's efficiency in managing its accounts payable. It is important for Consolidated Communications Holdings Inc to monitor and analyze these changes to ensure the effective utilization of its working capital and maintain healthy supplier relationships.