Shenandoah Telecommunications Co (SHEN)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	652,670	638,007	642,275	577,051	468,135
ROE		1.23%	-1.31%	155.51%	21.78%	11.86%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $8,038K ÷ $652,670K
= 1.23%

Shenandoah Telecommunications Co.'s return on equity (ROE) has shown significant fluctuations over the past five years. In 2021, the company achieved an exceptionally high ROE of 155.51%, indicating robust profitability relative to its equity base. This was a substantial improvement from the prior year's ROE of 21.76%, demonstrating a significant growth in profitability.

However, in 2022, the company experienced a negative ROE of -1.31%, reflecting a loss in profitability relative to shareholders' equity. This decline in ROE could be a cause for concern as it suggests that the company's profitability deteriorated significantly as compared to the previous year.

In 2023, Shenandoah Telecommunications Co.'s ROE improved to 1.23%, although it remained relatively low compared to the exceptional performance in 2021. This modest increase in ROE indicates a slight improvement in profitability but still lags behind the company's performance in 2020 and 2019.

Overall, Shenandoah Telecommunications Co.'s ROE has been volatile in recent years, with significant fluctuations in profitability levels. Investors and stakeholders may want to closely monitor the company's financial performance to assess its ability to generate returns on shareholders' equity effectively.