Shenandoah Telecommunications Co (SHEN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,740,270 | 1,214,230 | 977,719 | 890,733 | 2,031,710 |
| Total stockholders’ equity | US$ in thousands | 918,583 | 652,670 | 638,007 | 642,275 | 582,394 |
| Financial leverage ratio | 1.89 | 1.86 | 1.53 | 1.39 | 3.49 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,740,270K ÷ $918,583K
= 1.89
Based on the financial leverage ratio data provided for Shenandoah Telecommunications Co, we observe a significant decrease in the ratio from 3.49 as of December 31, 2020, to 1.39 as of December 31, 2021. This suggests that the company has substantially reduced its reliance on debt financing in the most recent fiscal year.
Subsequently, the financial leverage ratio has slightly increased to 1.53 as of December 31, 2022, followed by a further uptick to 1.86 as of December 31, 2023, and maintaining a similar level at 1.89 as of December 31, 2024. These increments indicate a gradual but controlled rise in the company's utilization of debt to finance its operations in the latter part of the period under review.
Overall, the trend in Shenandoah Telecommunications Co's financial leverage ratio reflects a strategic shift towards moderating debt exposure in the short term, followed by a more measured increase in leverage in subsequent years, potentially to support growth initiatives or capital investments. The company appears to be managing its debt levels prudently while considering opportunities for expansion.
Peer comparison
Dec 31, 2024