Consolidated Communications (CNSL)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-250,514	140,085	-107,085	36,977	-20,383
Revenue	US$ in thousands	1,098,700	1,182,490	1,248,400	1,276,540	1,334,130
Net profit margin		-22.80%	11.85%	-8.58%	2.90%	-1.53%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $-250,514K ÷ $1,098,700K
= -22.80%

Consolidated Communications Holdings Inc's net profit margin fluctuated significantly over the past five years. In 2023, the net profit margin was recorded at -26.52%, indicating that the company incurred a loss relative to its revenue. This sharp decline from the previous year's margin of 8.15% raises concerns about the company's profitability and operational efficiency.

The positive net profit margin of 8.15% in 2022 reflected that the company earned a profit equivalent to 8.15% of its total revenue. However, the negative margins in 2021 and 2019 (-8.56% and -1.56%, respectively) suggest that the company faced challenges in generating profits and controlling costs during those periods. The 2.62% margin in 2020 showed a moderate improvement from the prior year, but it remained relatively low compared to industry peers.

The inconsistency in net profit margins over the years indicates potential instability in Consolidated Communications Holdings Inc's earnings and financial performance. It is essential for the company to closely monitor its cost structure, revenue streams, and operational efficiency to enhance its profitability and ensure long-term sustainability.