Consolidated Communications (CNSL)
Return on total capital
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 | ||
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Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -158,178 | -165,745 | -113,015 | -3,519 | -93,162 | -38,112 | -26,456 | -10,890 | 135,178 | 121,878 | 126,722 | 136,487 | 135,513 | 141,203 | 127,393 | 101,913 | 81,281 | 58,117 | 35,323 | 26,450 |
Long-term debt | US$ in thousands | 2,142,860 | 2,142,430 | 2,142,010 | 2,141,590 | 2,141,180 | 2,140,770 | 2,140,360 | 2,139,960 | 2,118,850 | 2,139,180 | 2,138,790 | 2,137,270 | 1,932,670 | 2,205,440 | 2,209,500 | 2,221,570 | 2,250,680 | 2,270,900 | 2,293,060 | 2,291,970 |
Total stockholders’ equity | US$ in thousands | 779,364 | 845,352 | 899,238 | 1,005,240 | 1,045,450 | 1,032,780 | 734,313 | 728,837 | 836,376 | 401,636 | 283,494 | 332,506 | 389,228 | 384,963 | 365,667 | 347,213 | 340,881 | 353,500 | 353,101 | 370,167 |
Return on total capital | -5.41% | -5.55% | -3.72% | -0.11% | -2.92% | -1.20% | -0.92% | -0.38% | 4.57% | 4.80% | 5.23% | 5.53% | 5.84% | 5.45% | 4.95% | 3.97% | 3.14% | 2.21% | 1.33% | 0.99% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 eight quarters. The return on total capital was negative in the most recent two quarters, indicating that the company's capital allocation efficiency may be suboptimal. This negative trend suggests that the company may be struggling to generate sufficient returns relative to the amount of total capital deployed. Furthermore, the decreasing trend in return on total capital raises concerns about the company's ability to generate profits and effectively utilize its capital resources. The downward trajectory in return on total capital warrants further investigation into the company's operational performance and strategic capital allocation decisions.
Peer comparison
Dec 31, 2023