Shenandoah Telecommunications Co (SHEN)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-22,130	-15,155	-9,664	6,859	10,627	5,494	2,528	1,367	-1,741	-2,083	1,948	3,261	7,155	11,204	56,875	29,064	36,486	57,490	9,507	59,816
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	918,583	925,358	933,082	871,643	652,670	654,363	649,425	642,780	638,007	642,511	643,370	644,329	642,275	648,766	687,787	633,954	582,394	548,182	511,457	480,650
Return on total capital		-2.41%	-1.64%	-1.04%	0.79%	1.63%	0.84%	0.39%	0.21%	-0.27%	-0.32%	0.30%	0.51%	1.11%	1.73%	8.27%	4.58%	6.26%	10.49%	1.86%	12.44%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (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 data period provided. The return on total capital ranged from a high of 12.44% in March 2020 to a low of -2.41% in December 2024.

The return on total capital decreased significantly in the latter half of the period, with negative returns recorded in the last few quarters. This may indicate challenges in generating profits relative to the amount of capital invested in the business.

It is important for the company to closely monitor and address the factors influencing its return on total capital, as sustained negative returns can impact the overall financial health and sustainability of the company. Additionally, shareholders and investors may closely scrutinize this metric as it provides insights into the efficiency of capital utilization and the company's ability to generate returns for its investors.