Shenandoah Telecommunications Co (SHEN)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	292,804	147,494	123,795	98,655	74,306	24,869	—	—	0	—	—	—	0	0	672,601	680,531	688,464	696,378	719,067	726,970
Total stockholders’ equity	US$ in thousands	652,670	654,363	649,425	642,780	638,007	642,511	643,370	644,329	642,275	642,852	682,110	628,507	577,051	548,182	511,457	480,650	468,135	477,839	464,034	454,599
Debt-to-capital ratio		0.31	0.18	0.16	0.13	0.10	0.04	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.57	0.59	0.60	0.59	0.61	0.62

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

The debt-to-capital ratio of Shenandoah Telecommunications Co. has shown a fluctuating trend over the past eight quarters. The ratio has been on an upward trajectory, starting at 0.01 in Q1 2022 and reaching 0.32 in Q4 2023. This indicates an increase in the company's reliance on debt as a source of financing relative to its total capital over time.

The significant increase in the debt-to-capital ratio from 0.11 in Q4 2022 to 0.32 in Q4 2023 suggests that Shenandoah Telecommunications Co. may be taking on more debt relative to its equity position, which could raise concerns about its financial leverage and ability to meet its debt obligations.

It is important for investors and stakeholders to closely monitor this trend and assess the company's ability to manage its increasing debt levels effectively to ensure its long-term financial stability and sustainability. Additionally, further analysis of the company's overall financial performance and debt management strategies would be beneficial in understanding the implications of the rising debt-to-capital ratio.