Shenandoah Telecommunications Co (SHEN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.89 | 1.86 | 1.53 | 1.39 | 3.49 |
Shenandoah Telecommunications Co has consistently maintained a strong solvency position based on its solvency ratios. The company's debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been reported as 0.00 for the years 2020 to 2024. This indicates that the company has had no debt in relation to its total assets, capital, and equity during this period.
Furthermore, the financial leverage ratio, which provides insights into the company's ability to meet its financial obligations, has shown a favorable trend over the years. The ratio decreased from 3.49 in 2020 to 1.89 in 2024. This indicates that the company has reduced its reliance on debt financing and has become more efficient in managing its capital structure and financial leverage.
Overall, based on the solvency ratios, Shenandoah Telecommunications Co appears to have a solid financial position with little to no debt and improving financial leverage ratios over the years, reflecting strong financial stability and prudent financial management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -1.39 | 2.89 | -0.22 | 0.01 | -0.02 |
Based on the provided data for Shenandoah Telecommunications Co, the interest coverage ratio fluctuated significantly over the years. In December 31, 2020, the interest coverage was -0.02, indicating that the company's earnings were not sufficient to cover its interest expenses. This continued to be a concern in December 31, 2022, with an interest coverage of -0.22, further highlighting the company's financial strain.
However, there was a notable improvement in the company's performance by December 31, 2023, as the interest coverage ratio increased to 2.89. This suggests that Shenandoah Telecommunications Co's earnings were more than sufficient to cover its interest payments, indicating a healthier financial position.
Despite the improvement in 2023, there was a decline in interest coverage by December 31, 2024, with a ratio of -1.39. This decrease raises questions about the company's ability to comfortably meet its interest obligations with its earnings.
Overall, Shenandoah Telecommunications Co experienced fluctuations in its interest coverage ratio during the period analyzed, indicating varying levels of financial stability and highlighting the importance of monitoring the company's ability to service its debt obligations.