Shenandoah Telecommunications Co (SHEN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	278,863	207,661	193,684	174,251	134,517
Payables	US$ in thousands	53,546	49,173	28,542	19,599	40,295
Payables turnover		5.21	4.22	6.79	8.89	3.34

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $278,863K ÷ $53,546K
= 5.21

The payables turnover ratio for Shenandoah Telecommunications Co. has exhibited a decreasing trend over the past five years. The ratio decreased from 6.57 in 2019 to 1.98 in 2023. This indicates that the company is taking longer to pay its suppliers relative to the cost of goods sold. A lower payables turnover ratio may suggest inefficiencies in managing accounts payable or potential strain on liquidity. It is important for the company to closely monitor this trend and address any issues that may be causing the decline in the payables turnover ratio to maintain healthy supplier relationships and working capital management.