Shenandoah Telecommunications Co (SHEN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	139,255	44,061	84,344	195,397	101,651
Short-term investments	US$ in thousands	2,290	1,889	2,317	2,687	2,278
Receivables	US$ in thousands	24,473	50,370	52,193	70,393	73,847
Total current liabilities	US$ in thousands	98,355	96,421	67,290	1,208,060	153,577
Quick ratio		1.69	1.00	2.06	0.22	1.16

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($139,255K + $2,290K + $24,473K) ÷ $98,355K
= 1.69

The quick ratio of Shenandoah Telecommunications Co. has exhibited significant fluctuations over the past five years.

In 2023, the quick ratio improved to 1.78, indicating that the company had $1.78 of liquid assets for every $1 of current liabilities. This suggests that Shenandoah Telecommunications Co. had a strong ability to cover its short-term obligations with its most liquid assets.

The quick ratio had a sharp decline in 2022 to 1.10, potentially signaling a decrease in the company's ability to meet its short-term liabilities with its quick assets. However, the ratio recovered significantly in 2021, reaching 2.46, indicating a healthy liquidity position compared to the previous year.

In 2020, the quick ratio dropped to a mere 0.23, revealing a concerning liquidity position where the company had only $0.23 of liquid assets available to cover $1 of current liabilities. This could indicate potential liquidity issues or difficulty in meeting short-term obligations.

The quick ratio improved in 2019 to 1.58, indicating an increase in the company's ability to meet short-term obligations with its quick assets compared to the prior year.

Overall, Shenandoah Telecommunications Co.'s quick ratio has shown volatility in recent years, with fluctuations suggesting varying levels of liquidity and ability to cover short-term liabilities with liquid assets. Investors and stakeholders should closely monitor the company's liquidity position and trends in the quick ratio to assess its financial health and solvency.