Shenandoah Telecommunications Co (SHEN)

Working capital turnover

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
Revenue (ttm) US$ in thousands 300,501 301,022 297,724 292,123 285,771 273,763 264,883 257,462 249,739 245,267 241,096 344,678 431,664 534,529 624,303 609,113 611,175 611,662 613,833 761,706
Total current assets US$ in thousands 176,071 74,454 78,911 104,523 128,562 117,739 129,812 126,110 166,367 574,033 1,429,140 1,426,270 1,406,610 1,410,990 299,533 257,909 241,853 221,640 222,148 187,785
Total current liabilities US$ in thousands 98,355 84,421 81,831 92,236 96,421 78,941 71,054 57,058 67,290 485,423 1,156,540 1,202,320 1,208,060 1,232,110 145,327 139,644 153,577 132,055 127,781 119,121
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $300,501K ÷ ($176,071K – $98,355K)
= 3.87

Based on the data provided, Shenandoah Telecommunications Co.'s working capital turnover has displayed fluctuations over the quarters analyzed. In Q1 2023, the working capital turnover ratio was reported at 22.35, indicating that the company turned over its working capital 22.35 times during that period. This exceptional ratio may suggest efficient management of working capital to generate sales revenue.

Conversely, the working capital turnover ratios in the previous quarters show lower figures, ranging from 3.62 to 8.32. This variability in the ratios may reflect changes in the company's operational efficiency and liquidity management over time.

The absence of data for Q3 2023 and Q2 2023 limits the ability to assess the trend of the working capital turnover consistently throughout the year. However, it is evident that the company has experienced significant fluctuations in its working capital turnover performance.

A consistently high working capital turnover ratio indicates that Shenandoah Telecommunications Co. is effectively utilizing its working capital to generate sales, while a lower ratio may imply inefficiencies in managing working capital. Further analysis and comparison with industry peers would provide valuable insights into the company's working capital management efficiency.