Shenandoah Telecommunications Co (SHEN)

Receivables 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
Receivables	US$ in thousands	24,473	50,370	52,193	70,393	73,847
Receivables turnover		12.15	5.67	4.86	3.27	8.29

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $297,401K ÷ $24,473K
= 12.15

The receivables turnover ratio for Shenandoah Telecommunications Co. has shown a fluctuating trend over the past five years. In 2023, the ratio improved significantly to 11.74, reflecting the company's ability to collect outstanding receivables more frequently during the year compared to the previous year. This suggests a more efficient management of accounts receivable in 2023.

The ratio was relatively stable between 2019 and 2021, ranging from 3.14 to 8.58. In 2019 and 2021, the company exhibited a strong ability to turn its receivables into cash, indicating effective credit policies and collections procedures. However, there was a notable decline in 2022, with the ratio dropping to 5.31, indicating a slower collection of receivables compared to the prior year.

Overall, a higher receivables turnover ratio is generally preferred as it indicates that the company is collecting outstanding receivables more quickly. The improvement in 2023 is a positive sign for Shenandoah Telecommunications Co. and suggests enhanced efficiency in managing its receivables.