Shenandoah Telecommunications Co (SHEN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 114,571 | 98,355 | 100,245 | 67,290 | 755,859 |
| Quick ratio | 0.40 | 1.43 | 0.44 | 1.27 | 0.28 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($46,272K
+ $—K
+ $—K)
÷ $114,571K
= 0.40
The quick ratio of Shenandoah Telecommunications Co has shown varying trends over the last five years. It was notably low at 0.28 as of December 31, 2020, indicating the company's potential liquidity challenges in meeting short-term obligations with its most liquid assets. However, there was a significant improvement in the quick ratio to 1.27 by the end of 2021, suggesting a stronger ability to cover immediate liabilities with current assets excluding inventory.
Subsequently, the quick ratio decreased to 0.44 by December 31, 2022, which may indicate a slight decline in liquidity position. However, by the end of 2023, the ratio increased substantially to 1.43, reflecting a robust capacity to settle short-term debts without relying on slow-moving inventory.
In the most recent year, the quick ratio dropped to 0.40 as of December 31, 2024, signaling a potential decrease in immediate liquidity compared to the previous year. Overall, while the quick ratio has shown fluctuations, it is essential for Shenandoah Telecommunications Co to maintain a sufficient level of liquid assets to promptly meet its short-term financial commitments in the future.
Peer comparison
Dec 31, 2024