Shenandoah Telecommunications Co (SHEN)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	918,583	652,670	638,007	642,275	582,394
ROE		20.73%	1.23%	-1.31%	1.23%	0.45%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $190,388K ÷ $918,583K
= 20.73%

The return on equity (ROE) is a key financial ratio that indicates a company's ability to generate earnings from its shareholders' equity. Looking at the data provided for Shenandoah Telecommunications Co, we observe fluctuations in ROE over the years:

1. In December 31, 2020, the ROE was 0.45%, indicating that the company generated a modest return on its shareholders' equity.

2. By December 31, 2021, the ROE improved to 1.23%, showing a slight increase in profitability.

3. However, in December 31, 2022, the ROE turned negative at -1.31%, signaling that the company experienced a loss relative to its equity.

4. The performance bounced back in December 31, 2023, with an ROE of 1.23%, matching the level seen in 2021.

5. The most significant leap in ROE occurred by December 31, 2024, where it spiked to 20.73%, suggesting a substantial improvement in profitability and efficiency in utilizing shareholders' equity.

Overall, the ROE for Shenandoah Telecommunications Co has shown variability over the years, with both positive and negative trends. It is essential for the company to sustain or enhance its ROE, ensuring that it effectively leverages its equity to generate profits for its shareholders in the long term.