Consolidated Communications (CNSL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.14% | 40.58% | 56.91% | 56.35% | 53.47% |
| Operating profit margin | -14.40% | -7.88% | 10.83% | 10.62% | 6.09% |
| Pretax margin | -27.50% | 9.56% | -8.83% | 3.03% | -1.81% |
| Net profit margin | -22.80% | 11.85% | -8.58% | 2.90% | -1.53% |
Consolidated Communications Holdings Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has been relatively stable, ranging from 53.89% to 57.01%, indicating the company's ability to manage production costs efficiently.
However, the operating profit margin has been more volatile, with a significant decline in 2023 to -5.15% from positive percentages in the previous years. This suggests that the company may be facing challenges in controlling its operating expenses or generating sufficient revenue.
The pretax margin has also been negative in the last two years, indicating that the company's profitability before accounting for taxes has been deteriorating. The net profit margin, which accounts for taxes and other expenses, has been negative in 2023, indicating that the company is experiencing losses at the bottom line.
Overall, the downward trend in operating, pretax, and net profit margins raises concerns about Consolidated Communications Holdings Inc's profitability and highlights the need for the company to address its cost structure and revenue generation strategies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.36% | -2.40% | 3.64% | 3.86% | 2.40% |
| Return on assets (ROA) | -6.90% | 3.60% | -2.88% | 1.05% | -0.60% |
| Return on total capital | -5.41% | -2.92% | 4.57% | 5.84% | 3.14% |
| Return on equity (ROE) | -32.14% | 13.40% | -12.80% | 9.50% | -5.98% |
Consolidated Communications Holdings Inc's profitability ratios have fluctuated over the past five years.
The Operating return on assets (Operating ROA) has shown a declining trend from 4.08% in 2020 to -1.58% in 2023. This indicates that the company's operating profit generated from its assets has decreased over the years.
The Return on assets (ROA) also tells a similar story, with a negative ROA of -8.11% in 2023, compared to positive figures in the previous years. This suggests that the company's overall profitability in relation to its total assets has deteriorated significantly in 2023.
The Return on total capital has followed a similar pattern, declining from 6.14% in 2020 to -1.95% in 2023. This metric reflects the company's ability to generate returns for both equity and debt holders, and the decrease indicates a weaker performance in utilizing its total capital effectively.
Lastly, the Return on equity (ROE) has been volatile, with a substantial drop to -38.17% in 2023 from a positive figure in 2019. This shows that the company's ability to generate returns for its shareholders has been severely impacted in 2023, potentially raising concerns among investors.
Overall, the declining trend in Consolidated Communications Holdings Inc's profitability ratios signals a challenging period for the company's financial performance, which may require further analysis and strategic actions to improve efficiency and profitability in the future.