Shenandoah Telecommunications Co (SHEN)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	139,255	35,966	26,304	48,396	44,061	33,033	33,335	53,981	84,344	532,544	248,789	229,182	195,397	184,050	143,712	120,232	101,651	97,415	98,091	69,859
Short-term investments	US$ in thousands	2,290	2,027	2,116	1,993	1,889	1,739	1,812	2,173	2,317	2,165	2,228	2,039	2,687	2,255	2,096	1,706	2,278	2,102	2,107	2,037
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
Cash ratio		1.44	0.45	0.35	0.55	0.48	0.44	0.49	0.98	1.29	1.10	0.22	0.19	0.16	0.15	1.00	0.87	0.68	0.75	0.78	0.60

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($139,255K + $2,290K) ÷ $98,355K
= 1.44

The cash ratio of Shenandoah Telecommunications Co. has fluctuated over the past eight quarters, ranging from as low as 0.48 to as high as 1.54. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.

Analyzing the trend over the past year, we observe that the cash ratio increased significantly in Q4 2023 compared to the previous quarter, reaching its highest level of 1.54. This indicates that the company had a significant amount of cash and cash equivalents relative to its current liabilities, suggesting a strong liquidity position.

In contrast, the cash ratio in Q2 2023 was relatively low at 0.48, indicating a lower level of liquidity compared to other quarters. However, it improved in subsequent quarters, with Q3 and Q1 2023 showing a gradual increase.

Comparing the current cash ratio to the same quarter in the previous year, we see an improvement from Q4 2022 to Q4 2023, indicating that the company may have enhanced its cash position relative to its short-term liabilities over this period.

Overall, the cash ratio of Shenandoah Telecommunications Co. has displayed variability over the past year, but the recent increase in Q4 2023 signals a healthier liquidity position for the company compared to previous quarters. Further analysis of the company's cash management practices and working capital management may provide additional insights into its liquidity management strategies.