Consolidated Communications (CNSL)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 4,765 325,852 99,635 155,561 12,395
Short-term investments US$ in thousands 87,951 110,801 111,665
Total current liabilities US$ in thousands 317,245 266,904 285,545 270,470 244,296
Cash ratio 0.02 1.55 0.74 0.99 0.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,765K + $—K) ÷ $317,245K
= 0.02

The cash ratio of Consolidated Communications Holdings Inc has shown fluctuations over the past five years. In 2023, the cash ratio decreased significantly to 0.19 compared to 1.79 in 2022, indicating a substantial decline in the company's ability to cover its current liabilities with cash and cash equivalents. The sharp drop in the cash ratio may raise concerns about the company's liquidity position and its ability to meet short-term obligations.

The significant increase in the cash ratio in 2022 to 1.79 from 0.94 in 2021 reflects a strong liquidity position that year, suggesting the company had a sufficient level of cash and cash equivalents to cover its short-term liabilities comfortably. However, the cash ratio declined in 2021 from 0.75 in 2020, indicating a relative decrease in liquidity compared to the previous year.

In 2020, the cash ratio was 0.75, showing that the company had a moderate ability to cover its current liabilities with cash and cash equivalents. This was an improvement from 2019 when the cash ratio was 0.22, indicating a relatively low level of liquidity at that time.

Overall, the fluctuation in Consolidated Communications Holdings Inc's cash ratio over the past five years suggests varying levels of liquidity and raises questions about the company's ability to manage its short-term obligations effectively. Investors and analysts may need to closely monitor the company's liquidity position to assess any potential risks associated with insufficient cash reserves.


Peer comparison

Dec 31, 2023