Consolidated Communications (CNSL)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — 10.10 9.71 — — 3.87 3.66 3.65 8.12 8.20 — — — — — — — — — —
Receivables turnover 9.14 10.52 11.33 10.74 9.94 10.45 10.50 10.55 9.45 9.36 9.79 10.09 9.33 10.98 11.29 10.81 11.14 10.73 10.22 10.44
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
Working capital turnover — 269.60 9.26 6.04 3.59 2.81 63.00 9.30 8.86 8.33 6.44 5.62 18.30 394.44 — — — — — —

Based on the activity ratios provided for Consolidated Communications Holdings Inc, we can observe the following trends:

1. Receivables Turnover:
- The company's receivables turnover ratio has been relatively stable over the quarters, ranging from 9.82 to 10.63.
- This indicates that, on average, the company collects its accounts receivable approximately 10 times a year.
- A consistent receivables turnover ratio suggests efficient management of accounts receivable and timely collection of outstanding payments.

2. Payables Turnover:
- The payables turnover ratio for the company has shown significant variability, ranging from 8.52 to 18.09.
- A higher payables turnover ratio implies that the company is paying its suppliers more frequently within the period.
- The fluctuation in this ratio could indicate changes in payment terms with suppliers or variations in payment processing efficiency.

3. Working Capital Turnover:
- The working capital turnover ratio varies substantially across the quarters, from 2.82 to 270.04.
- A higher working capital turnover ratio indicates that the company is generating revenue efficiently using its working capital.
- The significant fluctuations in this ratio suggest variations in the company's ability to generate revenue relative to its investment in working capital.

Overall, the analysis of the activity ratios for Consolidated Communications Holdings Inc highlights the company's efficiency in managing its receivables and payables, but also points to some variability in working capital efficiency. Monitoring these ratios over time can provide insights into the company's overall financial performance and operational effectiveness.

Average number of days

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
Days of inventory on hand (DOH) days — 36.15 37.59 — — 94.31 99.75 99.99 44.95 44.51 — — — — — — — — — —
Days of sales outstanding (DSO) days 39.91 34.71 32.22 33.98 36.72 34.93 34.75 34.61 38.61 38.99 37.30 36.17 39.11 33.23 32.34 33.75 32.77 34.03 35.71 34.96
Number of days of payables days 60.57 22.98 27.41 33.69 17.19 30.93 61.11 42.18 70.66 82.07 76.18 48.57 44.98 38.35 27.64 30.59 46.27 50.22 66.02 38.31

The Days of Inventory on Hand (DOH) for Consolidated Communications Holdings Inc were not provided in the data table. The Days of Sales Outstanding (DSO) decreased from 37.18 days in Q4 2022 to 40.79 days in Q4 2023, indicating that the company took longer to collect revenue from its customers in the most recent quarter.

The Number of Days of Payables also increased from 22.10 days in Q4 2022 to 42.84 days in Q4 2023, suggesting that the company took longer to pay its suppliers in the recent quarter.

This indicates a potential liquidity issue as the company is taking longer to collect from customers and paying its suppliers more slowly, showing potential inefficiencies in managing working capital. Further analysis and comparison with industry benchmarks would be necessary to determine the overall impact on the company's operations.

Long-term

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
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
Total asset turnover 0.31 0.31 0.30 0.30 0.31 0.31 0.34 0.35 0.34 0.34 0.34 0.35 0.37 0.39 0.39 0.39 0.39 0.39 0.39 0.39

The fixed asset turnover ratio for Consolidated Communications Holdings Inc has been on a declining trend, decreasing from 0.63 in Q1 2022 to 0.45 in Q4 2023. This indicates that the company's ability to generate sales from its fixed assets has weakened over time.

Similarly, the total asset turnover ratio has also shown a decline, moving from 0.35 in Q1 2022 to 0.31 in Q4 2023. This suggests that the company's overall efficiency in utilizing its total assets to generate revenue has decreased.

Overall, the decreasing trends in both fixed asset turnover and total asset turnover ratios may indicate challenges in efficiently utilizing assets to generate sales, potentially pointing to operational inefficiencies or declining demand for the company's products or services. Further analysis of the company's operating and sales strategies may be warranted to address these declining activity ratios.