Shenandoah Telecommunications Co (SHEN)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	128,112	106,101	107,546	102,299	88,203
Inventory	US$ in thousands	—	9,836	22,622	-136,537	1,062,900
Inventory turnover		—	10.79	4.75	—	0.08

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $128,112K ÷ $—K
= —

The inventory turnover ratio for Shenandoah Telecommunications Co, a key metric used to assess how efficiently the company manages its inventory, displayed fluctuating trends over the years.

At December 31, 2020, the inventory turnover ratio was very low at 0.08, indicating that the company's inventory took a long time to sell or turn over during that period. However, the ratio was not reported for December 31, 2021.

Subsequently, there was a significant improvement in inventory turnover for December 31, 2022, with a ratio of 4.75, suggesting that the company was able to sell its inventory more frequently compared to the previous year. This increase in the ratio could indicate better inventory management or increased sales efficiency.

Furthermore, the inventory turnover ratio continued to improve significantly in the following years, reaching 10.79 at December 31, 2023. This sharp increase indicates that Shenandoah Telecommunications Co was turning over its inventory at a much faster rate, potentially due to more effective inventory control or increased demand for its products.

However, the inventory turnover ratio was not reported for December 31, 2024, making it challenging to assess the trend for that year.

Overall, the upward trend in inventory turnover from 2020 to 2023 suggests that Shenandoah Telecommunications Co made improvements in managing its inventory efficiently and effectively. Tracking this ratio in future periods will be crucial for evaluating the company's inventory management performance and its ability to convert inventory into sales in a timely manner.