Consolidated Communications (CNSL)

Payables 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
Cost of revenue (ttm)	US$ in thousands	362,018	704,953	669,984	584,174	702,665	359,230	350,989	344,477	211,552	213,152	208,414	204,212	205,179	213,079	220,646	237,495	244,045	234,345	247,389	247,771
Payables	US$ in thousands	60,073	44,380	50,306	53,921	33,096	30,445	58,761	39,807	40,953	47,930	43,500	27,174	25,283	22,385	16,707	19,902	30,936	32,241	44,746	26,005
Payables turnover		6.03	15.88	13.32	10.83	21.23	11.80	5.97	8.65	5.17	4.45	4.79	7.51	8.12	9.52	13.21	11.93	7.89	7.27	5.53	9.53

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $362,018K ÷ $60,073K
= 6.03

Consolidated Communications Holdings Inc's payables turnover has exhibited fluctuations over the past eight quarters. The payables turnover ratio measures how efficiently a company is managing its payables by indicating the number of times a company pays off its average accounts payable balance during a certain period.

In Q4 2023, the payables turnover ratio was 8.52, indicating that the company paid off its average accounts payable balance approximately 8.52 times during the quarter. This represented a decrease from the previous quarter's ratio of 11.83 in Q3 2023. The downward trend suggests a potential decrease in the company's ability to efficiently manage its payables during this period.

Comparing the current ratio to the same quarter in the previous year, there is a noticeable decrease from Q4 2022, where the ratio was 16.52. This substantial decline over the year may raise concerns about the company's ability to handle its payables efficiently.

The variability in payables turnover ratios observed over the quarters could indicate changes in the company's payment policies, supplier relationships, or liquidity challenges. Further analysis and exploration of the underlying reasons for these fluctuations are necessary to assess the impact on the company's financial health and operational efficiency.