Telephone and Data Systems Inc (TDS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 11.67 | 11.22 | 9.57 | 13.89 | 15.29 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | 10.84 | 10.53 | 6.17 | 2.79 |
The inventory turnover ratio for Telephone and Data Systems Inc decreased from 15.29 in 2020 to 13.89 in 2021, then further decreased to 9.57 in 2022, before slightly recovering to 11.22 in 2023 and reaching 11.67 in 2024. This indicates that the company is selling its inventory less frequently in recent years.
The receivables turnover ratio is not available for the years presented, meaning there is no information to assess how efficiently the company is collecting its receivables.
Similarly, the payables turnover ratio is not provided for any of the years, so the analysis of how quickly the company is paying its suppliers is not possible.
The working capital turnover ratio for Telephone and Data Systems Inc shows an increasing trend, from 2.79 in 2020 to 6.17 in 2021, further rising to 10.53 in 2022, then to 10.84 in 2023, and it is not available for 2024. This suggests that the company is generating more revenue relative to its working capital over the years, indicating improved efficiency in utilizing its working capital to generate sales.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 31.29 | 32.53 | 38.14 | 26.28 | 23.88 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios provide insight into how efficiently Telephone and Data Systems Inc manages its operations.
1. Days of Inventory on Hand (DOH):
- The company's DOH has shown an increasing trend over the years, from 23.88 days in 2020 to 31.29 days in 2024. This indicates that the company is holding inventory for a longer period before selling it.
- A higher DOH may suggest potential issues such as slow-moving inventory or overstocking, which can tie up capital and impact profitability.
2. Days of Sales Outstanding (DSO):
- The data provided does not specify the DSO for Telephone and Data Systems Inc from 2020 to 2024. DSO measures how long it takes the company to collect payment after a sale.
- Without the DSO data, it's challenging to assess the efficiency of the company in collecting its accounts receivable. A lower DSO is generally preferred as it signifies faster cash conversion.
3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the number of days of payables for Telephone and Data Systems Inc during the specified period.
- The days of payables ratio represents how long it takes the company to pay its suppliers. A longer period may indicate favorable credit terms but could also hint at potential liquidity risks or strained supplier relationships.
In conclusion, while the information provided offers some insights into the company's inventory management, the absence of DSO and payables data limits a comprehensive evaluation of Telephone and Data Systems Inc's overall efficiency in managing its working capital and operational activities.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.14 | 1.22 | 1.32 |
| Total asset turnover | 0.36 | 0.37 | 0.37 | 0.39 | 0.42 |
The Fixed Asset Turnover ratio of Telephone and Data Systems Inc has exhibited a decreasing trend over the years, declining from 1.32 in 2020 to 1.14 in 2022, with no data available for 2023 and 2024. This suggests that the company's efficiency in generating sales from its fixed assets has been gradually diminishing.
On the other hand, the Total Asset Turnover ratio has also shown a decreasing pattern, from 0.42 in 2020 to 0.36 in 2024, with relatively stable figures of 0.39 in 2021 and 0.37 in 2022 and 2023. This implies that the company's overall ability to generate sales from its total assets has been on a declining trend.
Both ratios indicate that Telephone and Data Systems Inc may be experiencing challenges in efficiently utilizing its assets to generate revenue, which could potentially impact its long-term profitability and operational effectiveness. Further analysis would be required to explore the underlying reasons for these trends and to assess the company's asset management strategies.