Telephone and Data Systems Inc (TDS)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,135,000	2,334,000	2,565,000	2,472,000	2,354,000
Inventory	US$ in thousands	183,000	208,000	268,000	178,000	154,000
Inventory turnover		11.67	11.22	9.57	13.89	15.29

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,135,000K ÷ $183,000K
= 11.67

The inventory turnover for Telephone and Data Systems Inc has shown variations over the past five years. In December 31, 2020, the inventory turnover stood at 15.29, indicating that the company's inventory was sold and replaced 15.29 times during that year. However, by December 31, 2022, the inventory turnover had decreased to 9.57, suggesting that the company took longer to sell its inventory compared to the previous years.

There was a slight improvement by December 31, 2023, with the inventory turnover increasing to 11.22, signaling a better efficiency in managing inventory. Subsequently, by December 31, 2024, the inventory turnover further improved to 11.67, indicating that the company was able to sell and replace its inventory more frequently.

Overall, the trend in inventory turnover for Telephone and Data Systems Inc shows fluctuations, with some years displaying better inventory management efficiency than others. It is important for the company to monitor and improve this ratio to ensure optimized inventory levels and operational effectiveness.