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
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