Consolidated Communications (CNSL)

Liquidity 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
Current ratio 0.81 1.01 1.39 1.61 2.24 2.42 1.07 1.44 1.50 1.47 1.71 1.82 1.26 1.01 0.93 0.78 0.72 0.72 0.76 0.69
Quick ratio 0.40 0.62 0.96 1.39 2.00 1.92 0.54 0.92 1.20 1.21 1.52 2.04 1.50 1.26 0.72 0.57 0.54 0.51 0.55 0.49
Cash ratio 0.02 0.28 0.64 1.05 1.55 1.54 0.15 0.53 0.74 0.79 1.05 1.59 0.99 0.80 0.20 0.06 0.05 0.02 0.04 0.02

Consolidated Communications Holdings Inc's liquidity ratios show fluctuating trends over the past eight quarters.

The current ratio measures the company's ability to pay its short-term obligations with its current assets. The current ratio has been declining, falling from 2.24 in Q4 2022 to 0.81 in Q4 2023. This indicates a potential weakening of the company's liquidity position and its ability to cover immediate liabilities.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also shows a decreasing trend. It dropped from 2.24 in Q4 2022 to 0.59 in Q4 2023, suggesting a considerable reduction in the company's ability to meet its short-term obligations with its most liquid assets.

The cash ratio, the most conservative measure of liquidity, declined from 1.79 in Q4 2022 to 0.19 in Q4 2023. This indicates that Consolidated Communications Holdings Inc may be having difficulty covering its short-term liabilities with its available cash and cash equivalents alone.

Overall, the downward trend in liquidity ratios raises concerns about Consolidated Communications Holdings Inc's short-term financial health and ability to meet its obligations, highlighting a need for close monitoring and strategic management of its liquidity position.

Additional liquidity measure

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
Cash conversion cycle days -20.65 47.88 42.41 0.29 19.53 98.31 73.40 92.42 12.90 1.42 -38.88 -12.40 -5.87 -5.12 4.70 3.17 -13.50 -16.19 -30.30 -3.35

The cash conversion cycle of Consolidated Communications Holdings Inc fluctuated significantly over the past eight quarters. In Q4 2023 and Q2 2023, the company had a negative cash conversion cycle of -2.04 days and -0.05 days, respectively, indicating that it was able to convert its inventory and accounts receivable into cash more quickly than it paid its accounts payable. This suggests an efficient management of working capital during these periods.

However, in Q3 2023, the cash conversion cycle increased to 4.95 days, indicating a slowdown in converting inventory and accounts receivable into cash. This could be a cause for concern as it may signal potential issues in managing the company's liquidity and cash flow.

Looking at historical data, in Q4 2022 and Q3 2022, the company had a relatively high cash conversion cycle of 15.08 days and 14.71 days, respectively, suggesting a longer period to convert working capital components into cash. Conversely, in Q2 2022 and Q1 2022, the company had negative cash conversion cycles of -3.34 days and -1.82 days, respectively, indicating similar efficiency in working capital management as observed in the recent quarters.

Overall, Consolidated Communications Holdings Inc should focus on sustaining a shorter cash conversion cycle to optimize its working capital efficiency and ensure healthy cash flow management in the long run.