Shenandoah Telecommunications Co (SHEN)

Pretax margin

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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands -38,027 -27,628 -18,469 2,050 11,011 6,653 1,361 -4,911 -9,306 -9,567 -5,278 2,489 7,010 11,020 11,263 46,753 60,354 74,948 92,348 70,491
Revenue (ttm) US$ in thousands 328,058 315,156 299,399 284,941 287,379 284,881 279,963 274,643 267,371 259,963 255,283 249,962 245,239 240,767 233,696 342,522 436,019 538,884 638,863 628,251
Pretax margin -11.59% -8.77% -6.17% 0.72% 3.83% 2.34% 0.49% -1.79% -3.48% -3.68% -2.07% 1.00% 2.86% 4.58% 4.82% 13.65% 13.84% 13.91% 14.46% 11.22%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-38,027K ÷ $328,058K
= -11.59%

The pretax margin of Shenandoah Telecommunications Co has exhibited fluctuations over the past few years, indicating changes in the company's profitability before taxes.

From March 2020 to June 2021, the pretax margin showed a generally positive trend, ranging from 11.22% to 14.46%. This suggests that during this period, the company was effectively controlling its operating expenses relative to its pre-tax earnings.

However, starting from June 2021, there was a noticeable decline in the pretax margin, dropping to 2.86% by December 2021. The trend continued to worsen in subsequent periods, reaching negative percentages from June 2022 to December 2024.

The decreasing trend in the pretax margin from mid-2021 onwards indicates potential challenges faced by Shenandoah Telecommunications Co in maintaining profitability and controlling costs effectively. The negative pretax margins in the latter period suggest that the company's operating expenses were surpassing its pre-tax earnings, which could raise concerns about its financial performance and operational efficiency.