Consolidated Communications (CNSL)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	-158,178	-93,162	135,178	135,513	81,281
Long-term debt	US$ in thousands	2,142,860	2,141,180	2,118,850	1,932,670	2,250,680
Total stockholders’ equity	US$ in thousands	779,364	1,045,450	836,376	389,228	340,881
Return on total capital		-5.41%	-2.92%	4.57%	5.84%	3.14%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-158,178K ÷ ($2,142,860K + $779,364K)
= -5.41%

Consolidated Communications Holdings Inc's return on total capital has shown a declining trend over the past five years. The return on total capital was positive in all years except for 2023, where it was -1.95%. This indicates that the company's ability to generate returns from both debt and equity capital was negative in 2023.

The return on total capital was highest in 2020 at 6.14%, followed by 2021 at 4.77%. However, it decreased in 2022 to 1.34% and further decreased in 2023. This downward trend suggests that the company may be facing challenges in efficiently utilizing its total capital to generate returns for its investors.

Overall, the fluctuating pattern in Consolidated Communications Holdings Inc's return on total capital raises concerns about the company's capital efficiency and long-term sustainability. Further analysis of the company's financial and operational performance is recommended to understand the factors influencing these changes in return on total capital.