Shenandoah Telecommunications Co (SHEN)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	176,071	128,562	166,367	1,406,610	241,853
Total current liabilities	US$ in thousands	98,355	96,421	67,290	1,208,060	153,577
Current ratio		1.79	1.33	2.47	1.16	1.57

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $176,071K ÷ $98,355K
= 1.79

The current ratio of Shenandoah Telecommunications Co. has displayed fluctuations over the past five years. It indicates the company's ability to meet its short-term obligations with its current assets.

In 2023, the current ratio improved to 1.79 from 1.33 in 2022, signaling a stronger position in meeting short-term liabilities. This increase could be attributed to better management of current assets or a reduction in current liabilities.

The significant drop in the current ratio in 2022 to 1.33 from 2.47 in 2021 could have raised concerns about the company's liquidity position or its ability to cover short-term liabilities. This may have been due to a decrease in current assets or an increase in current liabilities.

The current ratio of 2.47 in 2021 indicates a healthy liquidity position, with the company having more than enough current assets to cover its short-term liabilities. This could imply efficient working capital management or lower short-term debt levels.

The lower current ratio of 1.17 in 2020 suggests a potential liquidity challenge, as the company may have had difficulties in meeting its short-term obligations with its current assets. This could be a result of high current liabilities compared to current assets.

In 2019, the current ratio was 1.62, which indicates a moderate ability to cover short-term obligations with current assets. While not as strong as in 2021, it still suggests a reasonable liquidity position for the company during that period.

Overall, fluctuations in Shenandoah Telecommunications Co.'s current ratio highlight varying levels of liquidity and the company's ability to manage its short-term financial obligations across the five-year period.