Consolidated Communications (CNSL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,628,430 | 3,887,090 | 3,712,690 | 3,507,300 | 3,390,280 |
| Total stockholders’ equity | US$ in thousands | 779,364 | 1,045,450 | 836,376 | 389,228 | 340,881 |
| Financial leverage ratio | 4.66 | 3.72 | 4.44 | 9.01 | 9.95 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,628,430K ÷ $779,364K
= 4.66
The financial leverage ratio for Consolidated Communications Holdings Inc has fluctuated over the past five years. In 2023, the ratio stands at 4.70, indicating that the company is financing its operations with a higher proportion of debt relative to equity. This represents an increase from 2022 when the ratio was 3.75.
Comparing the current ratio to 2021, when it was 4.48, there has been a slight increase in leverage. However, significant fluctuations are observed when looking back to 2020 and 2019, where the leverage ratios were 9.17 and 9.95, respectively. These higher ratios suggest that in those years, the company relied heavily on debt to finance its operations.
Overall, the trend in the financial leverage ratio for Consolidated Communications Holdings Inc indicates variability in the company's capital structure over the past five years, with some years showing higher reliance on debt financing than others. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2023