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Consolidated Communications Holdings (Consolidated Communications Holdings) ROE %

: -23.52% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Consolidated Communications Holdings's annualized net income for the quarter that ended in Dec. 2023 was $-189 Mil. Consolidated Communications Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $804 Mil. Therefore, Consolidated Communications Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was -23.52%.

The historical rank and industry rank for Consolidated Communications Holdings's ROE % or its related term are showing as below:

CNSL' s ROE % Range Over the Past 10 Years
Min: -27.7   Med: 3.03   Max: 17.57
Current: -27.62

During the past 13 years, Consolidated Communications Holdings's highest ROE % was 17.57%. The lowest was -27.70%. And the median was 3.03%.

CNSL's ROE % is ranked worse than
87.3% of 370 companies
in the Telecommunication Services industry
Industry Median: 6.855 vs CNSL: -27.62

Consolidated Communications Holdings ROE % Historical Data

The historical data trend for Consolidated Communications Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Consolidated Communications Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.43 10.22 -17.67 15.01 -27.70

Consolidated Communications Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -13.63 -14.58 -45.85 -26.78 -23.52

Competitive Comparison

For the Telecom Services subindustry, Consolidated Communications Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Consolidated Communications Holdings ROE % Distribution

For the Telecommunication Services industry and Communication Services sector, Consolidated Communications Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Consolidated Communications Holdings's ROE % falls into.



Consolidated Communications Holdings ROE % Calculation

Consolidated Communications Holdings's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-250.514/( (1037.798+771.257)/ 2 )
=-250.514/904.5275
=-27.70 %

Consolidated Communications Holdings's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-189.2/( (837.26+771.257)/ 2 )
=-189.2/804.2585
=-23.52 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Consolidated Communications Holdings  (NAS:CNSL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-189.2/804.2585
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-189.2 / 1100.712)*(1100.712 / 3657.1945)*(3657.1945 / 804.2585)
=Net Margin %*Asset Turnover*Equity Multiplier
=-17.19 %*0.301*4.5473
=ROA %*Equity Multiplier
=-5.17 %*4.5473
=-23.52 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-189.2/804.2585
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-189.2 / -231.936) * (-231.936 / -9.084) * (-9.084 / 1100.712) * (1100.712 / 3657.1945) * (3657.1945 / 804.2585)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8157 * 25.5324 * -0.83 % * 0.301 * 4.5473
=-23.52 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Consolidated Communications Holdings ROE % Related Terms

Thank you for viewing the detailed overview of Consolidated Communications Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Consolidated Communications Holdings (Consolidated Communications Holdings) Business Description

Traded in Other Exchanges
N/A
Address
2116 South 17th Street, Mattoon, IL, USA, 61938-5973
Consolidated Communications Holdings Inc provides communication services for business and residential customers across various states in the U.S. Its business product suite includes data and Internet solutions, voice, data center services, security services, managed and IT services, and an expanded suite of cloud services. It provides wholesale solutions to wireless and wireline carriers and other service providers including data, voice, network connections, and custom fiber builds and last-mile connections. It offers residential high-speed Internet, video, phone, and home security services as well as multi-service residential and small business bundles.
Executives
Fred Graffam officer: Chief Financial Officer 1990 WITTINGTON PLACE, FARMERS BRANCH TX 75234
Solis Michel Marissa director 7221 LANGMUIR DRIVE, MCKINNEY TX 75071
Steven L Childers officer: Chief Financial Officer CONSOLIDATED COMMUNICATIONS, 121 SOUTH 17TH STREET, MATTOON IL 61938-3987
Andrew Frey director 10802 EXECUTIVE CENTER DRIVE, SUITE 300, LITTLE ROCK AR 72211
Searchlight Iii Cvl Gp, Llc 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Searchlight Iii Cvl, L.p. 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Robert J Currey director
Maribeth S Rahe director 255 E FIFTH STREET, CINCINNATI OH 45202
David G Fuller director 240 WATSON AVE, OAKVILLE A6 L6J 3V1
Udell C Robert Jr director, officer: President and CEO CONSOLIDATED COMMUNICATIONS, 121 SOUTH 17TH STREET, MATTOON IL 61938-3987
Moore Roger H/ca director 12061 BLUEMONT WAY, ATTN: GENERAL COUNSEL, RESTON VA 20190
Thomas A Gerke director GERKE THOMAS A, OVERLAND PARK KS 66251
Timothy D Taron director P.O. BOX 969, ROSEVILLE CA 95661
Dale E Parker director 93 HOYLAKE, ROCKY MOUNT NC 27804
Richard Anthony Lumpkin director 121 SOUTH 17TH STREET, MATTOON IL 61938