Consolidated Communications (CNSL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,098,700 | 1,182,490 | 1,248,400 | 1,276,540 | 1,334,130 |
| Receivables | US$ in thousands | 121,194 | 119,675 | 133,362 | 137,646 | 120,016 |
| Receivables turnover | 9.07 | 9.88 | 9.36 | 9.27 | 11.12 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,098,700K ÷ $121,194K
= 9.07
The receivables turnover ratio for Consolidated Communications Holdings Inc has shown a decreasing trend over the past five years. In 2019, the company's receivables turnover was at its highest at 10.89, indicating that the company collected its accounts receivable almost 11 times during the year. However, this ratio has been gradually decreasing, reaching 8.95 in 2023.
A decreasing trend in receivables turnover may suggest that the company is taking longer to collect payments from its customers, which could potentially point to issues with its credit policies, customer payment behaviors, or the overall efficiency of its collections process.
It is important for the company to monitor and analyze the reasons behind the decline in receivables turnover to ensure timely collection of outstanding payments and optimize working capital management. Further investigation into the company's accounts receivable management practices and customer creditworthiness may be warranted to improve its overall liquidity and financial performance.
Peer comparison
Dec 31, 2023