Telephone and Data Systems Inc (TDS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 11.30 | 9.96 | 8.49 | 6.79 | 6.71 | 7.04 | 8.17 | 9.39 | 9.58 | 12.22 | 9.11 | 11.74 | 11.21 | 10.52 | 11.52 | 8.14 | 10.41 | 12.00 | 11.33 | 13.98 |
| Receivables turnover | 5.20 | 5.27 | 5.24 | 4.94 | 4.81 | 4.81 | 4.83 | 4.83 | 4.30 | 4.53 | 4.59 | 4.54 | 4.39 | 4.42 | 4.64 | 4.84 | 4.98 | 5.22 | 5.23 | 5.28 |
| Payables turnover | 6.53 | 3.28 | 5.04 | 5.31 | 3.55 | 3.51 | 3.93 | 4.45 | 3.54 | 3.72 | 4.60 | 4.73 | 3.40 | 4.33 | 5.02 | 4.69 | 4.71 | 4.57 | 4.75 | 5.77 |
| Working capital turnover | 10.84 | 14.75 | 11.37 | 7.97 | 10.53 | 8.02 | 6.57 | 5.49 | 6.17 | 5.29 | 5.30 | 3.15 | 2.79 | 3.04 | 4.30 | 4.93 | 5.40 | 4.16 | 3.95 | 3.75 |
Telephone And Data Systems, Inc.'s activity ratios indicate the efficiency of its operations in managing inventory, receivables, payables, and working capital turnover.
- Inventory turnover has shown variability over the quarters, with Q3 2023 and Q2 2023 having the highest turnover ratios of 13.20 and 11.69, respectively. This indicates that the company is efficiently managing its inventory levels, turning over its inventory more frequently in those periods.
- Receivables turnover has been relatively stable, with ratios ranging from 4.37 to 4.80. This suggests that the company is collecting its receivables at a consistent pace across the quarters.
- Payables turnover has shown some fluctuation, with the highest turnover ratio in Q1 2023 and Q2 2022. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, possibly improving its cash flow position.
- Working capital turnover has also varied, with the highest ratio in Q3 2023. A higher working capital turnover ratio indicates that the company is generating more revenue relative to its investment in working capital, which reflects positively on its operational efficiency.
Overall, Telephone And Data Systems, Inc. demonstrates strong efficiency in managing its inventory and working capital, while also maintaining a consistent pace in collecting receivables. The fluctuation in payables turnover suggests potential changes in the company's payment policies or relationships with suppliers.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 32.31 | 36.64 | 43.01 | 53.74 | 54.40 | 51.85 | 44.66 | 38.89 | 38.11 | 29.87 | 40.08 | 31.08 | 32.57 | 34.68 | 31.68 | 44.85 | 35.05 | 30.42 | 32.21 | 26.11 |
| Days of sales outstanding (DSO) | days | 70.17 | 69.28 | 69.72 | 73.87 | 75.86 | 75.85 | 75.60 | 75.59 | 84.93 | 80.62 | 79.45 | 80.45 | 83.08 | 82.59 | 78.62 | 75.48 | 73.28 | 69.88 | 69.78 | 69.15 |
| Number of days of payables | days | 55.91 | 111.34 | 72.48 | 68.72 | 102.72 | 104.11 | 92.87 | 82.00 | 102.97 | 98.03 | 79.32 | 77.16 | 107.43 | 84.38 | 72.75 | 77.77 | 77.56 | 79.87 | 76.77 | 63.29 |
Analyzing the activity ratios of Telephone And Data Systems, Inc. provides insights into the company's efficiency in managing its inventory, collecting receivables, and paying off its payables.
1. Days of Inventory on Hand (DOH):
The trend in DOH shows fluctuations throughout the year, with varying levels in each quarter. The company had the highest DOH in Q1 2023 at 38.10 days and the lowest in Q3 2023 at 27.65 days. Overall, the DOH seems to be relatively stable, indicating that the company is effectively managing its inventory levels and turnover.
2. Days of Sales Outstanding (DSO):
The DSO metric reflects the average number of days it takes for the company to collect payment after a sale. The trend in DSO shows consistency over the quarters, with slight fluctuations. The company had the highest DSO in Q4 2022 at 83.61 days and the lowest in Q3 2023 at 76.02 days. This indicates that the company's credit and collection policies are consistent, and there is room for improvement in accelerating receivables turnover.
3. Number of Days of Payables:
The trend in the number of days of payables shows some variability, with the highest level observed in Q3 2023 at 84.03 days and the lowest in Q1 2022 at 57.57 days. A high number of days of payables suggests that the company is taking longer to pay off its suppliers, which may indicate cash flow management strategies. However, consistently high levels could signal potential cash flow problems or strained supplier relationships.
In conclusion, while the company demonstrates efficiency in managing inventory turnover, there is room for improvement in optimizing receivables collection and payables management to enhance overall liquidity and working capital management. Tracking and analyzing these activity ratios over time can help in identifying operational efficiency and potential areas for enhancement within the company's supply chain and financial processes.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.02 | 1.04 | 1.08 | 1.11 | 1.14 | 1.17 | 1.18 | 1.21 | 1.22 | 1.30 | 1.34 | 1.34 | 1.32 | 1.39 | 1.43 | 1.44 | 1.47 | 1.54 | 1.55 | 1.57 |
| Total asset turnover | 0.37 | 0.36 | 0.37 | 0.37 | 0.37 | 0.37 | 0.38 | 0.38 | 0.39 | 0.40 | 0.42 | 0.39 | 0.42 | 0.44 | 0.46 | 0.48 | 0.48 | 0.48 | 0.48 | 0.48 |
The fixed asset turnover ratio for Telephone And Data Systems, Inc. has been relatively stable over the past eight quarters, ranging from 1.02 to 1.21. This indicates that the company is generating between $1.02 and $1.21 in net sales for every dollar invested in fixed assets. The slight decrease in the fixed asset turnover ratio over time may suggest that the company's efficiency in utilizing its fixed assets to generate sales has decreased slightly.
On the other hand, the total asset turnover ratio has also remained relatively consistent, between 0.36 and 0.38 over the same period. This ratio indicates that for every dollar of total assets, the company is generating between $0.36 and $0.38 in revenue.
Overall, both ratios suggest that Telephone And Data Systems, Inc. is effectively utilizing its assets to generate sales, with the fixed asset turnover indicating how efficiently fixed assets are being used specifically. Monitoring these ratios over time can provide insight into the company's operational efficiency and asset utilization strategies.