Shenandoah Telecommunications Co (SHEN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 6.23% | 27.33% | 23.67% | 24.20% | 78.04% |
| Operating profit margin | 3.24% | -2.78% | -0.96% | -1.13% | -0.22% |
| Pretax margin | 3.70% | -3.26% | 392.98% | 54.24% | 9.06% |
| Net profit margin | 2.70% | -2.93% | 393.65% | 54.67% | 9.06% |
Shenandoah Telecommunications Co.'s profitability ratios, as depicted by various margins over the past five years, show fluctuations in performance. The gross profit margin has generally been stable, ranging from 58.29% to 63.08%, indicating the company's ability to efficiently manage production costs.
However, the operating profit margin has displayed more variability, with negative figures in 2022 and 2020. This suggests that operating expenses have at times outpaced revenues, impacting profitability at the operational level.
The pretax margin has also shown inconsistency, with negative values in 2022 and 2020. This metric reflects the company's ability to generate profits before accounting for taxes, and the fluctuations indicate challenges in maintaining consistent pre-tax profitability over the years.
The net profit margin has shown significant volatility, with a notable anomaly in 2021 where it spiked to 407.29%. This unusually high figure might be attributable to certain one-time events or accounting adjustments that inflated the net profit margin. Overall, the varying net profit margin values reflect the company's overall bottom-line profitability after all expenses, including taxes and interest, have been accounted for.
In summary, while Shenandoah Telecommunications Co. has demonstrated a relatively stable gross profit margin, its operating, pretax, and net profit margins have exhibited inconsistency over the past five years, indicating fluctuations in profitability at different levels of the income statement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.79% | -0.81% | -0.27% | -0.13% | -0.07% |
| Return on assets (ROA) | 0.66% | -0.86% | 112.14% | 6.21% | 2.92% |
| Return on total capital | 1.02% | -1.12% | 155.66% | -0.45% | 7.35% |
| Return on equity (ROE) | 1.23% | -1.31% | 155.51% | 21.78% | 11.86% |
Shenandoah Telecommunications Co.'s profitability ratios depict varying trends over the last five years.
Firstly, the Operating Return on Assets (Operating ROA) shows inconsistent performance, ranging from a low of -0.15% in 2022 to a high of 5.22% in 2019. The ratio improved to 1.00% in 2023, indicating a modest increase in the company's operating efficiency in generating profits from its assets.
In terms of Return on Assets (ROA), the company experienced significant fluctuations, with negative values in 2020 and 2022, as well as extraordinarily high values in 2021. The ROA improved to 0.66% in 2023, signaling a recovery compared to the previous year.
Return on Total Capital also displayed inconsistency, generally fluctuating around the zero mark over the period. The ratio slightly increased to 1.28% in 2023, indicating that the company's profitability in relation to its total invested capital improved.
Lastly, Return on Equity (ROE) demonstrated a notable surge from 2019 to 2021, peaking at 155.51% in 2021 before declining in the following years. The ratio in 2023 stood at 1.23%, representing a more sustainable return for shareholders compared to the previous year.
Overall, while the company exhibited fluctuations in profitability ratios over the years, there are signs of modest improvement in 2023, particularly in the Operating ROA and ROA ratios, indicating potential enhancements in operational efficiency and asset utilization.