Consolidated Communications (CNSL)

The liquidity ratios of Consolidated Communications Holdings Inc show varying levels of liquidity over the past five years.

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term obligations with its current assets.
- In 2023, the current ratio decreased significantly to 0.81 from 2.24 in 2022, indicating a lower ability to meet its short-term liabilities with current assets.
- The current ratio in 2023 is below 1, which may raise concerns about the company's short-term liquidity position.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of the company's ability to cover its short-term liabilities with its most liquid assets.
- The quick ratio in 2023 dropped to 0.59, significantly lower than the previous year's ratio of 2.24, further highlighting potential liquidity challenges.

3. Cash Ratio:
- The cash ratio focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents.
- In 2023, the cash ratio fell to 0.19, a notable decline from 1.79 in 2022, indicating a reduced ability to pay off immediate obligations with available cash.

Overall, the liquidity ratios of Consolidated Communications Holdings Inc suggest a concerning trend of decreasing liquidity and potential challenges in meeting short-term obligations in 2023. Investors and stakeholders may want to closely monitor the company's liquidity position and assess the effectiveness of its liquidity management strategies.

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Additional liquidity measure

The cash conversion cycle for Consolidated Communications Holdings Inc has shown fluctuations over the past five years. In 2023, the company experienced a negative cash conversion cycle of -2.04 days, indicating that it was able to convert its inventory and receivables into cash more quickly than it took to pay its suppliers. This may be a positive sign of efficient working capital management.

In contrast, in 2020, the cash conversion cycle was higher at 22.37 days, suggesting that it took the company longer to convert its inventory and receivables into cash compared to the time it took to pay its suppliers. However, the cycle improved in 2021 and 2022, indicating a more efficient process during those years.

Overall, the trend in the cash conversion cycle for Consolidated Communications Holdings Inc has been fluctuating, with negative and positive cycles observed over the years. It is important for the company to closely monitor and manage its working capital components to ensure efficient cash conversion in the future.