Shenandoah Telecommunications Co (SHEN)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -22,130 -15,155 -9,664 6,859 10,627 5,494 2,528 1,367 -1,741 -2,083 1,948 3,261 7,155 11,204 56,875 29,064 36,486 57,490 9,507 59,816
Interest expense (ttm) US$ in thousands 15,897 12,857 10,387 7,296 3,612 11,673 13,919 22,986 22,764 18,124 14,680 4,708 4,538 0 0 5,044 11,255 17,742 25,247 27,725
Interest coverage -1.39 -1.18 -0.93 0.94 2.94 0.47 0.18 0.06 -0.08 -0.11 0.13 0.69 1.58 — — 5.76 3.24 3.24 0.38 2.16

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-22,130K ÷ $15,897K
= -1.39

The interest coverage ratio of Shenandoah Telecommunications Co has shown varying trends over the years. In March 2020, the company had an interest coverage ratio of 2.16, indicating that it was able to cover its interest expenses 2.16 times over. This ratio declined significantly to 0.38 by June 2020, raising concerns about the company's ability to meet its interest obligations.

However, the interest coverage improved in the following quarters, reaching a high of 5.76 in March 2021, reflecting a stronger ability to cover interest expenses from operating income. The ratio then fluctuated in the subsequent periods, with values ranging from negative figures to positive values but generally below the benchmark of 1, suggesting potential difficulties in meeting interest payments with operating profits alone.

Overall, the trend in Shenandoah Telecommunications Co's interest coverage ratio indicates periods of both strength and weakness in its ability to service its debt obligations from operating earnings. It would be important for the company to monitor and manage its interest coverage ratio effectively to ensure financial stability and mitigate the risks associated with high debt levels.