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 | ||
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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