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.