Telephone and Data Systems Inc (TDS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,351,000 | 1,818,000 | 1,721,000 | 1,729,000 | 1,763,000 |
| Payables | US$ in thousands | 360,000 | 506,000 | 481,000 | 508,000 | 374,000 |
| Payables turnover | 6.53 | 3.59 | 3.58 | 3.40 | 4.71 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,351,000K ÷ $360,000K
= 6.53
The payables turnover ratio for Telephone And Data Systems, Inc. has shown fluctuations over the past five years. The ratio measures how efficiently the company manages its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a specific period.
In 2023, the payables turnover ratio increased to 6.48 times, indicating that the company paid off its accounts payable 6.48 times during the year, compared to 5.07 times in 2022. This suggests an improvement in the efficiency of managing accounts payable from the prior year.
Comparing the 2023 ratio to 2021 and 2020, we observe a similar trend of improvement in payables turnover. The ratio increased from 5.14 in 2021 to 4.63 in 2020, indicating a more efficient management of payments to suppliers and vendors.
In contrast, there was a decrease in the payables turnover ratio in 2019 compared to 2018. The ratio dropped from 6.25 in 2019 to 6.48 in 2020, showing that the company took longer to pay off its accounts payable in 2019.
Overall, the increasing trend in the payables turnover ratio for Telephone And Data Systems, Inc. in recent years suggests an improvement in the company's efficiency in managing its accounts payable and paying off its obligations to suppliers and vendors.
Peer comparison
Dec 31, 2023