Shenandoah Telecommunications Co (SHEN)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	328,058	315,156	299,399	284,941	287,379	284,881	279,963	274,643	267,371	259,963	255,283	249,962	245,239	240,767	233,696	342,522	436,019	538,884	638,863	628,251
Total current assets	US$ in thousands	94,520	97,514	96,545	423,410	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	1,408,720	1,410,990	299,533	257,909
Total current liabilities	US$ in thousands	114,571	123,133	112,089	91,033	98,355	84,421	81,831	92,236	100,245	78,941	71,054	57,058	67,290	485,423	1,156,540	1,202,320	755,859	1,232,110	145,327	139,644
Working capital turnover		—	—	—	0.86	3.70	—	—	22.35	9.44	6.70	4.34	3.62	2.48	2.72	0.86	1.53	0.67	3.01	4.14	5.31

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $328,058K ÷ ($94,520K – $114,571K)
= —

Shenandoah Telecommunications Co's working capital turnover has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024.

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A higher turnover ratio indicates that the company is effectively managing its working capital.

From March 31, 2020, to March 31, 2021, the working capital turnover declined steadily from 5.31 to 1.53, indicating a reduction in efficiency in utilizing working capital to generate revenue. This could be a concern as it suggests a potential issue with managing the company's current assets and liabilities.

Subsequently, there was a further drop by June 30, 2021, to 0.86, which is a very low turnover rate and may indicate inefficiencies or difficulties in managing the working capital cycle effectively.

However, there was an improvement in the turnover ratio from September 30, 2021, to December 31, 2022, reaching a high of 9.44 by the end of December 31, 2022. This significant increase in the turnover ratio suggests a positive trend in efficiently using the company's working capital to generate sales.

Although there were fluctuations in the following periods, with the ratio reaching its peak at 22.35 on March 31, 2023, the company's ability to convert working capital into revenue remained relatively strong.

Analysts should keep monitoring the working capital turnover of Shenandoah Telecommunications Co to assess its ability to manage working capital effectively and generate sales efficiently.