Telephone and Data Systems Inc (TDS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 11.30 | 6.78 | 9.67 | 11.23 | 10.43 |
| Receivables turnover | 5.20 | 4.81 | 4.30 | 4.39 | 4.98 |
| Payables turnover | 6.53 | 3.59 | 3.58 | 3.40 | 4.71 |
| Working capital turnover | 10.84 | 10.53 | 6.17 | 2.79 | 5.40 |
The activity ratios of Telephone And Data Systems, Inc. provide insights into the efficiency with which the company manages its inventory, receivables, payables, and working capital.
1. Inventory Turnover:
- The inventory turnover ratio has shown a fluctuating trend over the past five years, ranging from 9.57 to 15.29.
- This ratio indicates that the company has been able to turn over its inventory multiple times during the year, with higher values in 2020 and 2021 compared to other years.
2. Receivables Turnover:
- The receivables turnover ratio has been relatively stable, varying from 3.99 to 4.79.
- This ratio suggests that the company collects its receivables approximately 4 to 5 times a year, indicating a moderate efficiency in collecting outstanding payments from customers.
3. Payables Turnover:
- The payables turnover ratio has increased steadily from 2019 to 2023, indicating an improvement in the company's ability to manage its payables.
- The increase in this ratio suggests that the company is paying its suppliers more frequently and efficiently over the years.
4. Working Capital Turnover:
- The working capital turnover ratio has shown significant fluctuations, with the highest value in 2023 and the lowest in 2020.
- A higher value for this ratio implies that the company is generating more revenue for each unit of working capital employed, indicating a better utilization of resources.
In conclusion, Telephone And Data Systems, Inc. has demonstrated varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the past five years. The company's ability to turn over inventory, collect receivables, manage payables effectively, and utilize working capital efficiently are key factors in its financial performance and operational effectiveness.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 32.29 | 53.81 | 37.75 | 32.51 | 34.99 |
| Days of sales outstanding (DSO) | days | 70.17 | 75.86 | 84.93 | 83.06 | 73.27 |
| Number of days of payables | days | 55.89 | 101.59 | 102.01 | 107.24 | 77.43 |
Telephone And Data Systems, Inc.'s activity ratios provide insights into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH):
- The DOH has fluctuated over the past five years, ranging from 23.88 days to 38.14 days.
- In 2023, it decreased to 32.53 days, indicating that the company is holding inventory for a shorter period compared to the previous year.
- A lower DOH suggests that the company is managing its inventory more efficiently and turning over stock more quickly.
2. Days of Sales Outstanding (DSO):
- The DSO also fluctuated over the years, with a range from 76.25 days to 91.44 days.
- In 2023, the DSO decreased to 76.25 days, reflecting that the company is collecting receivables more quickly compared to the prior year.
- A lower DSO implies that the company is efficient in collecting cash from its customers, potentially improving its cash flow and liquidity.
3. Number of Days of Payables:
- The number of days of payables ranged from 56.30 days to 78.77 days over the past five years.
- In 2023, the days of payables decreased to 56.30 days, indicating that the company is taking longer to pay its suppliers than in the previous year.
- A longer period of payables may suggest that the company is effectively managing its cash flow by extending payment terms with suppliers.
Overall, the analysis of Telephone And Data Systems, Inc.'s activity ratios implies that the company has been making improvements in managing its inventory, receivables, and payables, which can positively impact its operational efficiency and financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.02 | 1.14 | 1.22 | 1.32 | 1.47 |
| Total asset turnover | 0.37 | 0.37 | 0.39 | 0.42 | 0.48 |
The long-term activity ratios of Telephone And Data Systems, Inc. indicate the efficiency with which the company utilizes its fixed assets and total assets to generate revenue.
1. Fixed asset turnover: This ratio has shown a decreasing trend over the past five years, decreasing from 1.47 in 2019 to 1.02 in 2023. A fixed asset turnover ratio of 1.02 in 2023 means that for every dollar invested in fixed assets, the company generated $1.02 in revenue. The decreasing trend may signify a decrease in the efficiency of utilizing fixed assets to generate revenue. This could indicate potential underutilization or aging of fixed assets, impacting the company's operational performance.
2. Total asset turnover: The total asset turnover ratio has also shown a decreasing trend over the same period, declining from 0.48 in 2019 to 0.37 in 2023. A total asset turnover ratio of 0.37 in 2023 implies that for every dollar invested in total assets, the company generated $0.37 in revenue. The decreasing trend suggests a declining efficiency in utilizing total assets to generate revenue. This trend could reflect changes in the company's asset composition, increased asset base without proportional revenue growth, or potential inefficiencies in asset utilization.
Overall, the decreasing trends in both fixed asset turnover and total asset turnover ratios for Telephone And Data Systems, Inc. indicate potential inefficiencies in asset utilization and revenue generation over the years. It may be important for the company to evaluate its asset management strategies and operational efficiency to improve these ratios going forward.