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.


Peer comparison

Dec 31, 2023