Telephone and Data Systems Inc (TDS)
Receivables 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 |
| Receivables | US$ in thousands | 992,000 | 1,125,000 | 1,240,000 | 1,189,000 | 1,039,000 |
| Receivables turnover | 5.20 | 4.81 | 4.30 | 4.39 | 4.98 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,160,000K ÷ $992,000K
= 5.20
The receivables turnover ratio for Telephone And Data Systems, Inc. has shown a fluctuating trend over the past five years. In 2023, the ratio improved to 4.79 compared to the previous year's 4.37. This signifies that the company collected its accounts receivable approximately 4.79 times during the year, indicating a quicker conversion of receivables into cash.
However, looking further back, the ratio was lower in 2021 and 2020 at 3.99 and 4.02 respectively, indicating a slower collection of receivables during those years. The ratio peaked in 2019 at 4.46 before declining in the following years.
Overall, while there have been fluctuations in the receivables turnover ratio, the recent improvement in 2023 suggests a more efficient management of accounts receivable by Telephone And Data Systems, Inc. It is important to monitor this ratio continuously to ensure timely collection of outstanding receivables and efficient working capital management.
Peer comparison
Dec 31, 2023