Telephone and Data Systems Inc (TDS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,160,000 | 5,413,000 | 5,329,000 | 5,225,000 | 5,176,000 |
| Property, plant and equipment | US$ in thousands | 5,062,000 | 4,760,000 | 4,361,000 | 3,972,000 | 3,527,000 |
| Fixed asset turnover | 1.02 | 1.14 | 1.22 | 1.32 | 1.47 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,160,000K ÷ $5,062,000K
= 1.02
The fixed asset turnover ratio for Telephone And Data Systems, Inc. has shown a declining trend over the past five years. In 2019, the ratio was at its highest at 1.47, indicating that the company generated $1.47 in revenue for every dollar invested in fixed assets.
However, in the subsequent years, the ratio declined consistently, reaching 1.02 in 2023. This suggests that the company's efficiency in utilizing its fixed assets to generate revenue has been decreasing over time.
A declining fixed asset turnover ratio could indicate that the company is not effectively generating sales from its fixed assets or that its fixed asset base has been increasing at a faster rate than its revenue generation. This trend warrants further investigation to understand the reason behind the decrease in efficiency in utilizing fixed assets.
Peer comparison
Dec 31, 2023