Shenandoah Telecommunications Co (SHEN)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	297,401	285,771	253,739	229,875	612,538
Property, plant and equipment	US$ in thousands	879,499	687,553	554,162	440,427	363,087
Fixed asset turnover		0.34	0.42	0.46	0.52	1.69

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $297,401K ÷ $879,499K
= 0.34

The fixed asset turnover for Shenandoah Telecommunications Co. has been decreasing over the past five years. In 2019, the fixed asset turnover was the highest at 0.91, indicating that the company generated $0.91 in revenue for every $1 of fixed assets it owned. However, this ratio has been declining steadily since then, reaching 0.33 by the end of 2023.

A decreasing fixed asset turnover may suggest that the company is not efficiently utilizing its fixed assets to generate revenue. This could indicate issues such as underutilization of assets, inefficiencies in operations, or a decrease in sales relative to the value of fixed assets.

It is important for Shenandoah Telecommunications Co. to investigate the reasons behind the declining fixed asset turnover and take steps to improve asset utilization to enhance operational efficiency and overall financial performance.