Shenandoah Telecommunications Co (SHEN)

Shenandoah Telecommunications Co's current ratio has shown fluctuations over the years, starting at 1.86 in 2020, peaking at 2.47 in 2021, but then decreasing to 1.28 in 2022 before recovering to 1.79 in 2023 and dropping significantly to 0.82 in 2024. This indicates a general trend of a strong ability to meet short-term obligations, albeit with some recent deterioration.

The quick ratio, which excludes inventory from current assets, displayed a similar pattern of variability. It was low at 0.28 in 2020, increased sharply to 1.27 in 2021, dropped to 0.44 in 2022, rose to 1.43 in 2023, and then fell back to 0.40 in 2024. This ratio suggests a more conservative assessment of liquidity as it excludes inventory, with the company showing stronger liquidity in 2021 and 2023.

The cash ratio, reflecting the most stringent liquidity measure by only considering cash and cash equivalents, follows a parallel trend to the quick ratio. Shenandoah Telecommunications Co's cash ratio was at 0.28 in 2020, rose to 1.27 in 2021, dropped to 0.44 in 2022, increased to 1.43 in 2023, and reverted to 0.40 in 2024. This implies the company has a solid cash position to cover short-term obligations.

Overall, while the company's liquidity ratios have shown some level of volatility, with fluctuations in different years, the ability to meet short-term obligations appears to have weakened in 2022 and 2024. It would be advisable for Shenandoah Telecommunications Co to closely monitor its liquidity position to ensure it remains robust enough to meet financial obligations as they come due.

---

Additional liquidity measure

The cash conversion cycle of Shenandoah Telecommunications Co has shown significant fluctuations over the years based on the data provided.

As of December 31, 2020, the company had a cash conversion cycle of 4,398.47 days, indicating a prolonged period for the company to convert its investments in inventory back into cash. This may raise concerns about the company's efficiency in managing its working capital.

However, there was a substantial improvement by December 31, 2021, with the cash conversion cycle decreasing to 0.00 days. This suggests that the company was able to streamline its processes and convert inventory into cash much more swiftly.

By December 31, 2022, the cash conversion cycle increased to 76.78 days, indicating a slight delay in converting inventory to cash compared to the previous year. This could be a result of changes in the company's operations or market conditions.

Subsequently, by December 31, 2023, the cash conversion cycle decreased to 33.84 days, signifying an improvement in the efficiency of the company's working capital management.

Finally, by December 31, 2024, the cash conversion cycle reverted to 0.00 days, mirroring the efficiency seen in 2021. This could suggest that the company successfully maintained or further improved its working capital efficiency.

Overall, fluctuations in Shenandoah Telecommunications Co's cash conversion cycle reflect changes in its operational efficiency and working capital management practices over the analyzed period.