Shenandoah Telecommunications Co (SHEN)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	8,038	-8,379	998,831	125,673	55,500
Total assets	US$ in thousands	1,214,230	977,719	890,733	2,024,400	1,898,900
ROA		0.66%	-0.86%	112.14%	6.21%	2.92%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $8,038K ÷ $1,214,230K
= 0.66%

Shenandoah Telecommunications Co.'s return on assets (ROA) has fluctuated significantly over the past five years. In 2023, the ROA stood at 0.66%, showing a positive return on assets, albeit at a relatively low level. In contrast, the ROA was negative in 2022 at -0.86%, indicating that the company's assets did not generate a profit during that period.

The most striking figure was in 2021, where the ROA spiked to an exceptionally high level of 112.14%. This indicates that the company generated a significant return on its assets relative to its asset base that year. In the previous two years, the ROA was moderate, with values of 6.24% in 2020 and 2.95% in 2019, suggesting relatively stable returns on assets during those periods.

The fluctuation in ROA over the years could be attributed to various factors, such as changes in the company's operational efficiency, profitability, asset management, and capital structure. It is crucial for stakeholders to delve deeper into the financial performance and operational aspects of Shenandoah Telecommunications Co. to understand the drivers behind these fluctuations and assess the company's overall performance.