Shenandoah Telecommunications Co (SHEN)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	292,804	74,306	0	0	688,464
Total assets	US$ in thousands	1,214,230	977,719	890,733	2,024,400	1,898,900
Debt-to-assets ratio		0.24	0.08	0.00	0.00	0.36

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $292,804K ÷ $1,214,230K
= 0.24

The debt-to-assets ratio of Shenandoah Telecommunications Co. has fluctuated over the past five years. In 2023, the ratio stands at 0.25, indicating that 25% of the company's assets are financed by debt. This represents a significant increase from the previous year's ratio of 0.08, suggesting that the company has taken on more debt relative to its total assets.

Comparing the current ratio to that of 2021 when it was 0.00, it is evident that the company was debt-free that year, implying that all assets were funded by equity. The sharp increase in the debt-to-assets ratio in 2023 could be a cause for concern as it indicates a higher reliance on debt for financing operations compared to previous years.

In 2020 and 2019, the debt-to-assets ratios were relatively higher at 0.34 and 0.39, respectively. This suggests that the company had a higher proportion of debt in its capital structure during those years.

Overall, the trend in Shenandoah Telecommunications Co.'s debt-to-assets ratio shows variability, with fluctuations reflecting changes in the company's financing decisions and capital structure over the years. Further analysis and consideration of industry benchmarks would be advisable to assess the company's leverage position effectively.