Consolidated Communications (CNSL)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -158,178 | -165,745 | -113,015 | -3,519 | -93,162 | -38,112 | -26,456 | -10,890 | 135,178 | 121,878 | 126,722 | 136,487 | 135,513 | 141,203 | 127,393 | 101,913 | 81,281 | 58,117 | 35,323 | 26,450 |
| Interest expense (ttm) | US$ in thousands | 11,425 | 8,922 | 8,870 | 8,820 | 8,775 | 9,082 | 11,705 | 14,247 | 16,728 | 18,720 | 15,470 | 12,314 | 9,227 | 8,952 | 8,271 | 7,593 | 7,610 | 37,785 | 70,768 | 103,075 |
| Interest coverage | -13.84 | -18.58 | -12.74 | -0.40 | -10.62 | -4.20 | -2.26 | -0.76 | 8.08 | 6.51 | 8.19 | 11.08 | 14.69 | 15.77 | 15.40 | 13.42 | 10.68 | 1.54 | 0.50 | 0.26 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-158,178K ÷ $11,425K
= -13.84
The interest coverage ratio for Consolidated Communications Holdings Inc has been fluctuating over the past eight quarters. In Q4 2023 and Q3 2023, the company had negative interest coverage, indicating that its earnings before interest and taxes were insufficient to cover its interest expenses. This suggests a concerning financial position, as the company's ability to meet its interest obligations was strained during these periods.
The improving trend from negative values to positive values in the prior quarters of Q1 2023, Q4 2022, and Q3 2022 is a positive sign, showing that the company's earnings were able to cover its interest expenses during those periods. However, the interest coverage ratio in these quarters was still relatively low, indicating potential financial vulnerability.
The peak interest coverage ratio occurred in Q1 2022 at 0.78, which suggests that the company's earnings before interest and taxes were almost able to cover its interest expenses by a factor of around 0.78 times.
Overall, the erratic nature of Consolidated Communications Holdings Inc's interest coverage ratio highlights the company's financial volatility and the importance of closely monitoring its ability to meet interest obligations.
Peer comparison
Dec 31, 2023