Consolidated Communications (CNSL)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -158,178 | -93,162 | 135,178 | 135,513 | 81,281 |
| Total assets | US$ in thousands | 3,628,430 | 3,887,090 | 3,712,690 | 3,507,300 | 3,390,280 |
| Operating ROA | -4.36% | -2.40% | 3.64% | 3.86% | 2.40% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-158,178K ÷ $3,628,430K
= -4.36%
Consolidated Communications Holdings Inc's operating return on assets (operating ROA) has exhibited a declining trend over the past five years. The operating ROA decreased from 2.40% in 2019 to 1.10% in 2022, and further dropped to -1.58% in 2023. This negative operating ROA in 2023 indicates that the company's operating profit generated from its assets was not sufficient to cover its operating expenses. A decrease in operating ROA can suggest inefficiencies in the company's operations or challenges in generating profits from its assets. Monitoring the trend of operating ROA can provide insights into the company's operational performance and efficiency in utilizing its assets to generate profits.
Peer comparison
Dec 31, 2023