Telephone and Data Systems Inc (TDS)

Short-term

Turnover ratios

Telephone and Data Systems Inc's inventory turnover has shown fluctuations over the past few years, ranging from a low of 9.57 times in December 2022 to a high of 18.21 times in June 2024. Generally, the company has been able to effectively manage its inventory levels to support sales, with the ratio averaging around 13-15 times.

On the other hand, the data provided does not include information on receivables turnover and payables turnover, which suggests that it may not be available or may not be relevant for the analysis. These ratios are crucial in evaluating how efficiently the company collects receivables from customers and manages payments to suppliers, respectively.

The working capital turnover ratio, which measures how efficiently a company is generating revenue from its working capital, has shown an increasing trend over the years. From 4.93 in March 2020, it peaked at 14.75 in September 2023, indicating that the company has been utilizing its working capital more effectively to drive revenue growth. However, there was a slight decline to 7.77 by December 2024, which may require further investigation to understand the reasons behind this decrease.

Overall, based on the inventory turnover and working capital turnover ratios, Telephone and Data Systems Inc appears to have maintained good operational efficiency in managing its inventory and working capital to support its business activities.

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Average number of days

Based on the provided data on activity ratios for Telephone and Data Systems Inc, we can analyze the following:

1. Days of Inventory on Hand (DOH):
The DOH ratio measures how many days, on average, a company holds inventory before selling it. From the data provided, we observe fluctuations in the days of inventory on hand over the quarters. The trend shows variations between 20 to 38 days, indicating changes in inventory management efficiency over time. In general, a lower DOH is preferable as it suggests a quicker turnover of inventory and potentially lower carrying costs.

2. Days of Sales Outstanding (DSO):
Unfortunately, data for Days of Sales Outstanding (DSO) is not available for analysis. DSO measures how long it takes for a company to collect payments after making a sale. A lower DSO is typically better as it indicates faster cash collection and better liquidity management.

3. Number of Days of Payables:
Similarly, data for the Number of Days of Payables is not provided in the dataset. This ratio assesses how long a company takes to pay its suppliers. A higher number of days of payables could indicate that the company is taking longer to pay its bills, potentially signaling liquidity issues or strained supplier relationships.

In conclusion, the analysis of activity ratios for Telephone and Data Systems Inc reveals fluctuations in inventory management efficiency over time, but the lack of data on DSO and payables limits a comprehensive assessment of the company's overall activity performance. It is recommended for further analysis to track all three activity ratios consistently to gain a holistic view of the company's operational efficiency.

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Long-term

The Fixed Asset Turnover ratio for Telephone and Data Systems Inc has shown a gradual decline from 1.44 as of March 31, 2020, to 1.14 as of December 31, 2022. This ratio reflects how efficiently the company is utilizing its fixed assets to generate sales revenue. The declining trend may indicate that the company is becoming less efficient in generating sales relative to its investment in fixed assets.

On the other hand, the Total Asset Turnover ratio has fluctuated over the years but generally remained relatively stable within a narrow range from 0.37 as of December 31, 2022, to 0.36 as of December 31, 2024. This ratio measures the efficiency of the company in generating sales revenue from its total assets. A consistent Total Asset Turnover ratio suggests that the company is effectively utilizing all its assets to generate revenue.

Overall, the analysis of the long-term activity ratios for Telephone and Data Systems Inc indicates a declining trend in the efficiency of utilizing fixed assets to generate sales, while the overall efficiency in utilizing total assets to generate revenue has remained relatively stable over the years.