Consolidated Communications (CNSL)

Financial leverage ratio

		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
Total assets	US$ in thousands	3,628,430	3,685,960	3,759,410	3,891,920	3,887,090	3,968,980	3,585,720	3,595,450	3,712,690	3,728,950	3,686,800	3,673,820	3,507,300	3,383,830	3,347,640	3,355,130	3,390,280	3,443,300	3,485,710	3,524,040
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
Financial leverage ratio		4.66	4.36	4.18	3.87	3.72	3.84	4.88	4.93	4.44	9.28	13.00	11.05	9.01	8.79	9.15	9.66	9.95	9.74	9.87	9.52

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,628,430K ÷ $779,364K
= 4.66

Consolidated Communications Holdings Inc's financial leverage ratio has shown a fluctuating trend over the past eight quarters. The ratio increased from 3.75 in Q4 2022 to 4.70 in Q4 2023, indicating a higher level of financial leverage. This suggests that the company has been relying more on debt financing compared to equity to fund its operations and growth.

Subsequently, the ratio decreased to 4.40 in Q3 2023, followed by further decreases in Q2 2023 (4.22) and Q1 2023 (3.90). The downward trend may imply a reduction in the company's debt levels relative to its equity, possibly as a result of debt repayment or increased equity infusion.

Comparing the latest ratio to Q1 2022, it is evident that Consolidated Communications Holdings Inc's financial leverage has been fluctuating within a range over the past two years, with Q2 2022 and Q1 2022 showing higher ratios of 4.93 and 4.98, respectively.

Overall, the company's financial leverage ratio has shown variability, indicating a mix of debt and equity usage in its capital structure. Investors and analysts should monitor this ratio along with other financial metrics to assess the company's risk and capital structure strategy.