Shenandoah Telecommunications Co (SHEN)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	652,670	638,007	642,275	577,051	468,135
Debt-to-capital ratio		0.31	0.10	0.00	0.00	0.60

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $292,804K ÷ ($292,804K + $652,670K)
= 0.31

Shenandoah Telecommunications Co.'s debt-to-capital ratio has fluctuated significantly over the past five years, reflecting varying levels of debt relative to the company's total capital structure. In 2019 and 2020, the ratio was relatively high at 0.61 and 0.54 respectively, indicating a higher proportion of debt financing in relation to total capital.

However, there was a notable decrease in the debt-to-capital ratio in 2021 to 0.00, suggesting either a significant reduction in debt levels or a substantial increase in equity or other capital sources. This significant reduction in the ratio may indicate a shift towards a more conservative financial structure with less reliance on debt financing.

In 2022, the debt-to-capital ratio increased to 0.11, indicating a slight rise in the proportion of debt compared to total capital but still significantly lower than the levels seen in 2019 and 2020.

By the end of 2023, the ratio increased further to 0.32, which suggests a moderate increase in the company's debt relative to its capital structure compared to the previous year.

Overall, Shenandoah Telecommunications Co.'s debt-to-capital ratio has shown variability over the past five years, with a trend towards lower levels of debt relative to total capital since the peak in 2019. This can indicate a changing financial strategy or capital structure decisions by the company, potentially impacting its risk profile and financial flexibility.