Shenandoah Telecommunications Co (SHEN)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,214,230	977,719	890,733	2,024,400	1,898,900
Total stockholders’ equity	US$ in thousands	652,670	638,007	642,275	577,051	468,135
Financial leverage ratio		1.86	1.53	1.39	3.51	4.06

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,214,230K ÷ $652,670K
= 1.86

The financial leverage ratio of Shenandoah Telecommunications Co. has shown fluctuation over the past five years. The ratio increased significantly from 2019 to 2020, reaching 3.96, indicating a higher level of leverage in 2020. However, in the subsequent years, the ratio decreased, suggesting a reduction in the company's reliance on debt financing to support its operations.

In 2023, the financial leverage ratio stood at 1.86, which is higher compared to 2022 and 2021 but lower than the peak in 2020. This indicates that Shenandoah Telecommunications Co. had a moderate level of financial leverage in 2023, implying a balanced mix of debt and equity in its capital structure.

Overall, the trend in the financial leverage ratio of Shenandoah Telecommunications Co. reflects changes in the company's capital structure and financing decisions over the years. The decreasing trend from 2020 onwards may indicate a strategic shift towards lower leverage and a more conservative approach to managing its debt obligations.