Shenandoah Telecommunications Co (SHEN)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	28.33	—	7.05	6.34	9.35	5.49	3.47	6.25	—	13.78	0.16	0.15	0.15	0.04	19.93	14.06	23.29	59.89	42.16	45.23
Receivables turnover	12.28	12.81	14.89	13.96	5.67	5.16	5.63	5.66	4.78	9.80	3.65	5.17	6.13	7.89	6.49	8.74	8.28	9.70	9.64	13.10
Payables turnover	5.20	4.88	5.06	4.39	4.30	4.63	5.39	6.91	4.97	10.34	7.49	8.42	8.11	1.75	2.46	3.27	3.31	10.32	10.01	12.89
Working capital turnover	3.87	—	—	23.77	8.89	7.06	4.51	3.73	2.52	2.77	0.88	1.54	2.17	2.99	4.05	5.15	6.92	6.83	6.50	11.09

Based on the activity ratios of Shenandoah Telecommunications Co. provided in the table:

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company collects its accounts receivable during a specific period.
- The trend shows an improvement in recent quarters, with a significant increase from Q4 2022 to Q3 2023, indicating faster collection of receivables.

2. Payables Turnover:
- The payables turnover ratio indicates how efficiently the company pays its suppliers or vendors.
- The ratio fluctuates over the quarters, with a decrease from Q1 2022 to Q1 2023, suggesting that payables are being managed differently or there are changes in payment terms with suppliers.

3. Working Capital Turnover:
- The working capital turnover ratio evaluates the company's efficiency in generating sales revenue from its working capital.
- The ratio varies across quarters, with a substantial increase from Q1 2022 to Q1 2023, signifying an enhanced ability to generate sales relative to working capital.

Overall, analyzing these activity ratios can provide insights into Shenandoah Telecommunications Co.'s operational efficiency, effectiveness in managing receivables and payables, and utilization of working capital to drive sales.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	12.88	—	51.77	57.56	39.05	66.50	105.04	58.41	—	26.50	2,303.73	2,461.52	2,440.76	9,431.29	18.31	25.96	15.67	6.09	8.66	8.07
Days of sales outstanding (DSO)	days	29.73	28.49	24.51	26.16	64.33	70.73	64.83	64.48	76.28	37.24	99.88	70.55	59.52	46.27	56.20	41.76	44.10	37.63	37.88	27.87
Number of days of payables	days	70.13	74.78	72.14	83.07	84.89	78.80	67.72	52.82	73.38	35.28	48.75	43.34	45.01	208.64	148.38	111.56	110.23	35.37	36.47	28.32

Days of inventory on hand (DOH) for Shenandoah Telecommunications Co. are not provided in the data table. However, we can analyze the Days of Sales Outstanding (DSO) and the Number of Days of Payables to gain insights into the company's efficiency in managing its receivables and payables.

The Days of Sales Outstanding (DSO) has shown a decreasing trend over the four quarters, indicating that the company is collecting its accounts receivable at a faster rate. In Q4 2023, DSO stands at 31.08 days, a significant improvement from 68.76 days in Q4 2022. This suggests that Shenandoah Telecommunications Co. has been more effective in converting its credit sales into cash.

On the other hand, the Number of Days of Payables has been fluctuating over the quarters. In Q4 2023, the company takes an average of 184.20 days to pay its suppliers, which is significantly higher compared to previous quarters. This may imply that Shenandoah Telecommunications Co. is taking longer to settle its payables, possibly to manage its cash flow or negotiate better payment terms with suppliers.

Overall, the analysis of activity ratios indicates that Shenandoah Telecommunications Co. has improved its collection of accounts receivable but has also extended the time it takes to pay its suppliers. This combination may suggest a strategic approach to managing liquidity and working capital, but further investigation into the company's operational efficiency and supplier relations would be valuable.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	0.34	0.37	0.38	0.39	0.42	0.43	0.43	0.44	0.45	0.47	0.49	0.74	0.98	1.29	0.89	0.88	1.68	0.89	0.88	1.09
Total asset turnover	0.25	0.28	0.29	0.29	0.29	0.30	0.30	0.29	0.28	0.19	0.11	0.17	0.21	0.27	0.33	0.33	0.32	0.33	0.34	0.42

Shenandoah Telecommunications Co.'s long-term activity ratios show a declining trend over the past eight quarters. The fixed asset turnover, which measures how efficiently the company is utilizing its fixed assets to generate revenue, has decreased steadily from 0.43 in Q1 2022 to 0.33 in Q4 2023. This indicates that the company is generating less revenue per dollar invested in fixed assets.

Similarly, the total asset turnover, which reflects how well the company is using all its assets to generate sales, has also shown a downward trajectory, declining from 0.29 in Q2 2022 to 0.24 in Q4 2023. This suggests that Shenandoah Telecommunications Co. is becoming less efficient in generating sales relative to its total assets.

Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios may indicate potential inefficiencies in the company's asset management and utilization. It is essential for the company to closely monitor and address these declining ratios to improve operational efficiency and enhance overall financial performance.