Shenandoah Telecommunications Co (SHEN)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	9,624	-7,958	-2,430	-2,601	-1,342
Revenue	US$ in thousands	297,401	285,771	253,739	229,875	612,538
Operating profit margin		3.24%	-2.78%	-0.96%	-1.13%	-0.22%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $9,624K ÷ $297,401K
= 3.24%

The operating profit margin of Shenandoah Telecommunications Co. has fluctuated over the past five years. In 2019, the company achieved a high operating profit margin of 15.31%, indicating strong profitability relative to its revenue. However, this margin decreased significantly in 2020 to -0.52%, indicating that the company experienced operating losses during that year.

Subsequently, there was a slight improvement in the operating profit margin in 2021 to 2.15%, although it remained relatively low compared to the peak in 2019. In 2022, the margin turned negative again at -0.55%, suggesting further operational challenges for the company.

Finally, in 2023, there was a recovery in the operating profit margin to 4.24%, showing signs of improvement in profitability compared to the previous year. Overall, the fluctuating trend in the operating profit margin over the five-year period indicates potential volatility in Shenandoah Telecommunications Co.'s operational performance and profitability. It is important for the company to closely monitor its cost structure and revenue generation strategies to sustain and enhance its operating profit margin in the future.