Shenandoah Telecommunications Co (SHEN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.08 | 0.00 | 0.00 | 0.36 |
| Debt-to-capital ratio | 0.31 | 0.10 | 0.00 | 0.00 | 0.60 |
| Debt-to-equity ratio | 0.45 | 0.12 | 0.00 | 0.00 | 1.47 |
| Financial leverage ratio | 1.86 | 1.53 | 1.39 | 3.51 | 4.06 |
The solvency ratios of Shenandoah Telecommunications Co. provide insights into the company's ability to meet its long-term financial obligations and the extent of its financial leverage.
The debt-to-assets ratio has shown an increasing trend from 2019 to 2023, indicating the company's increasing use of debt to finance its assets. However, the ratio remains relatively low at 0.25 in 2023, suggesting a conservative level of leverage relative to its asset base.
The debt-to-capital ratio also demonstrates a similar trend, with a gradual increase over the years. Despite the increase, the ratio in 2023 is at 0.32, indicating that around 32% of the company's capital structure is financed by debt.
The debt-to-equity ratio has also shown an upward trend, reaching 0.46 in 2023. This indicates that for every dollar of equity, the company has 46 cents of debt, signaling a moderate level of financial risk.
The financial leverage ratio has decreased steadily from 2019 to 2023, showing an improving trend in the company's ability to meet its financial obligations through equity rather than debt. A lower financial leverage ratio is generally favorable as it indicates lower financial risk and dependency on debt financing.
Overall, Shenandoah Telecommunications Co. has maintained relatively conservative levels of debt relative to its assets, capital, and equity over the years, which suggests a prudent approach to managing its long-term financial obligations and risks.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.14 | -11.65 | 384.51 | -0.02 | 2.88 |
Based on the provided data, it appears that Shenandoah Telecommunications Co. did not report its interest coverage ratio for the years ending December 31, 2023, 2022, 2021, and 2020. However, in 2019, the company had an interest coverage ratio of 3.29, indicating that the company earned 3.29 times the amount of interest expense it incurred during that year. Without data for the following years, it is challenging to assess the trend in the company's ability to cover its interest obligations with operating income. Comparing the 2019 ratio to more recent years could provide insights into the company's financial health and its ability to service its debt through operating profits.