Shenandoah Telecommunications Co (SHEN)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	46,272	139,255	44,061	84,344	195,397
Short-term investments	US$ in thousands	—	1,443	0	801	13,769
Total current liabilities	US$ in thousands	114,571	98,355	100,245	67,290	755,859
Cash ratio		0.40	1.43	0.44	1.27	0.28

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($46,272K + $—K) ÷ $114,571K
= 0.40

The cash ratio of Shenandoah Telecommunications Co has exhibited notable fluctuations over the past five years. As of December 31, 2020, the cash ratio was 0.28, indicating that the company had $0.28 in cash and cash equivalents for every dollar of current liabilities.

Subsequently, there was a significant improvement in the cash ratio by the end of December 31, 2021, reaching 1.27. This enhancement suggests that the company significantly increased its cash holdings relative to its short-term obligations, which could indicate improved liquidity and financial stability.

However, in the following years, the cash ratio fluctuated again. By December 31, 2022, the ratio decreased to 0.44, indicating a lower level of cash reserves compared to the previous year. The cash ratio then improved again by December 31, 2023, reaching 1.43, showcasing a strong position in terms of cash availability to cover short-term liabilities.

Lastly, as of December 31, 2024, the cash ratio decreased once more to 0.40, indicating a slight decline in the company's ability to cover its current liabilities with available cash and cash equivalents.

Overall, the fluctuation in Shenandoah Telecommunications Co's cash ratio over the past five years suggests varying levels of liquidity and highlights the importance of closely monitoring cash position relative to short-term obligations for financial health and stability.