Gabe Waggoner - Consolidated Communications Ex Operations

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Consolidated Communications Holdings has accumulated 2.13 B in total debt with debt to equity ratio (D/E) of 632.8, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Consolidated Communications has a current ratio of 0.68, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Consolidated Communications until it has trouble settling it off, either with new capital or with free cash flow. So, Consolidated Communications' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Consolidated Communications sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Consolidated to invest in growth at high rates of return. When we think about Consolidated Communications' use of debt, we should always consider it together with cash and equity.