Consolidated Communications (CNSL)

Receivables 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
Revenue (ttm)	US$ in thousands	1,108,273	1,129,071	1,142,036	1,165,264	1,189,461	1,211,965	1,233,930	1,250,822	1,260,849	1,249,993	1,258,475	1,268,369	1,284,566	1,307,977	1,314,817	1,322,890	1,336,839	1,350,554	1,364,712	1,381,684
Receivables	US$ in thousands	121,194	107,361	100,827	108,471	119,675	115,985	117,479	118,596	133,362	133,524	128,601	125,677	137,646	119,076	116,493	122,340	120,016	125,908	133,535	132,326
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,108,273K ÷ $121,194K
= 9.14

Receivables turnover is a key financial ratio that measures how efficiently a company is collecting its accounts receivable during a specific period. The ratio is calculated by dividing net credit sales by the average accounts receivable balance. A higher receivables turnover ratio indicates that the company is collecting its receivables more quickly.

In the case of Consolidated Communications Holdings Inc, the receivables turnover ratio has shown some fluctuation over the past eight quarters. The ratio ranged from a low of 8.95 in Q4 2023 to a high of 10.63 in Q2 2023. Overall, the company's receivables turnover ratio has been relatively consistent, with values mostly above 9.00.

A higher receivables turnover ratio suggests that the company is effectively managing its accounts receivable and converting them into cash quickly. This indicates strong liquidity and efficient credit management practices. However, a sharp decline in the ratio could imply potential issues with collecting outstanding receivables or a slowdown in sales.

It is also important to consider industry benchmarks and trends when evaluating the company's receivables turnover ratio to assess its performance relative to its peers. Additionally, analyzing other liquidity and efficiency ratios in conjunction with the receivables turnover ratio can provide a more comprehensive understanding of the company's financial health.