Shenandoah Telecommunications Co (SHEN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.82 | 0.79 | 0.86 | 4.65 | 1.79 | 0.88 | 0.96 | 1.13 | 1.28 | 1.49 | 1.83 | 2.21 | 2.47 | 1.18 | 1.24 | 1.19 | 1.86 | 1.15 | 2.06 | 1.85 |
| Quick ratio | 0.40 | 0.35 | 0.39 | 4.31 | 1.43 | 0.44 | 0.32 | 0.52 | 0.44 | 0.40 | 0.48 | 0.96 | 1.27 | 1.10 | 0.22 | 0.19 | 0.28 | 0.16 | 0.99 | 0.86 |
| Cash ratio | 0.40 | 0.35 | 0.39 | 4.31 | 1.43 | 0.44 | 0.32 | 0.52 | 0.44 | 0.40 | 0.48 | 0.96 | 1.27 | 1.10 | 0.22 | 0.19 | 0.28 | 0.16 | 0.99 | 0.86 |
The liquidity ratios of Shenandoah Telecommunications Co provide insight into the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown fluctuations over the years. It generally ranged between 1.15 and 2.47, with the highest value recorded on December 31, 2021. However, by December 31, 2024, the current ratio dropped to 0.82, indicating a potential decrease in the company's liquidity position.
The quick ratio, also known as the acid-test ratio, reflects the company's ability to pay off its current liabilities without relying on the sale of inventory. Similar to the current ratio, the quick ratio fluctuated over time, ranging from 0.16 to 4.31. The highest quick ratio was observed on March 31, 2024, suggesting a strong ability to meet short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity measure, focuses on the company's ability to cover its current liabilities with cash and cash equivalents. The cash ratio values were in alignment with the quick ratio, reflecting similar trends and fluctuations over the years.
Overall, while the company's liquidity ratios have shown variability, it is essential to closely monitor these metrics to ensure Shenandoah Telecommunications Co maintains a healthy liquidity position to meet its short-term obligations efficiently.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 33.84 | 0.00 | 100.88 | 114.57 | 76.78 | 101.23 | 159.03 | 82.68 | 0.00 | 49.73 | 4,350.02 | 3,185.53 | 2,306.00 | 1,970.65 | 4.67 | 9.82 |
The cash conversion cycle of Shenandoah Telecommunications Co has shown significant fluctuations over the years. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
From the data provided, we observe that the cash conversion cycle ranged from a low of 0 days to a high of over 4,000 days during the period under review. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its resources into cash more quickly.
In the initial periods, Shenandoah Telecommunications Co had relatively low cash conversion cycles, indicating efficient working capital management. However, there were certain periods (such as September 2020 and December 2020) where the cash conversion cycle spiked significantly, indicating potential issues with managing inventory, receivables, or payables.
It is worth noting that the company's cash conversion cycle improved towards the end of the period, with some periods registering 0 days, which may suggest improved efficiency in converting resources into cash inflows.
Overall, the analysis of Shenandoah Telecommunications Co's cash conversion cycle highlights the importance of effectively managing working capital to ensure optimal cash flow generation and operational efficiency.