Shenandoah Telecommunications Co (SHEN)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	190,388	8,038	-8,379	7,929	2,626
Total assets	US$ in thousands	1,740,270	1,214,230	977,719	890,733	2,031,710
ROA		10.94%	0.66%	-0.86%	0.89%	0.13%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $190,388K ÷ $1,740,270K
= 10.94%

Shenandoah Telecommunications Co's return on assets (ROA) has shown significant fluctuations over the years based on the provided data. In December 31, 2020, the ROA was at a modest 0.13%, indicating a relatively low return on the company's assets. However, by December 31, 2021, the ROA increased substantially to 0.89%, demonstrating improved asset utilization and efficiency.

The following year, in December 31, 2022, the ROA turned negative at -0.86%, suggesting that the company's assets were not generating profits, possibly due to operational challenges or asset impairments. However, Shenandoah Telecommunications Co managed to turn this around by December 31, 2023, achieving an ROA of 0.66%, indicating a return to profitability in asset utilization.

The most notable performance was seen by December 31, 2024, with an ROA of 10.94%. This sharp increase in ROA implies that the company significantly improved its efficiency in generating profits from its assets, potentially through cost controls, revenue growth, or effective asset management strategies.

Overall, Shenandoah Telecommunications Co's ROA has shown variability over the years, reflecting the company's ability to effectively utilize its assets to generate returns for its stakeholders. This trend highlights the importance of monitoring and analyzing ROA as a key indicator of the company's operational efficiency and financial performance.