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