Consolidated Communications (CNSL)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-equity ratio		2.75	2.05	2.53	4.97	6.60

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,142,860K ÷ $779,364K
= 2.75

The debt-to-equity ratio of Consolidated Communications Holdings Inc has exhibited fluctuations over the past five years, indicating varying levels of financial leverage and risk.

The ratio decreased from 6.68 in 2019 to 5.10 in 2020, suggesting a reduction in debt relative to equity, potentially indicating an effort to deleverage and strengthen the balance sheet.

However, the ratio increased in 2021 to 2.56 and then further to 2.06 in 2022, which could indicate an increase in debt or a decline in equity over these years. This might have been due to strategic decisions such as acquisitions, capital expenditures, or changes in financing activities.

In 2023, the debt-to-equity ratio rose to 2.79, indicating a higher level of debt relative to equity compared to the previous year. This increase could raise concerns about the company's financial risk and ability to meet its debt obligations.

Overall, the trend in the debt-to-equity ratio for Consolidated Communications Holdings Inc shows variability, highlighting the importance of closely monitoring the company's capital structure and leverage levels to assess its financial health and risk profile.