Shenandoah Telecommunications Co (SHEN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -22,130 | 12,176 | -1,997 | 5,283 | -2,601 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 918,583 | 652,670 | 638,007 | 642,275 | 582,394 |
| Return on total capital | -2.41% | 1.87% | -0.31% | 0.82% | -0.45% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-22,130K ÷ ($—K + $918,583K)
= -2.41%
Shenandoah Telecommunications Co's return on total capital has shown fluctuations over the past five years. In December 31, 2020, the company reported a negative return on total capital of -0.45%, indicating that it generated a lower return than the total capital invested. However, by December 31, 2021, the return on total capital improved to 0.82%, suggesting a modest gain in efficiency in utilizing capital.
In the following year, as of December 31, 2022, the return on total capital decreased slightly to -0.31%, indicating a decline in the company's ability to generate returns relative to its total invested capital. Subsequently, by December 31, 2023, Shenandoah Telecommunications Co experienced a notable increase in its return on total capital to 1.87%, indicating improved efficiency in capital utilization and potentially stronger profitability.
However, the latest data point as of December 31, 2024, shows a significant decline in the return on total capital to -2.41%, signifying a deterioration in the company's ability to generate returns on its total capital. Overall, the trend in return on total capital for Shenandoah Telecommunications Co has been mixed, highlighting the importance of continuous monitoring and strategic management of capital allocation to enhance overall performance.
Peer comparison
Dec 31, 2024