Telephone and Data Systems Inc (TDS)
Total asset 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 |
| Total assets | US$ in thousands | 13,921,000 | 14,550,000 | 13,493,000 | 12,525,000 | 10,781,000 |
| Total asset turnover | 0.37 | 0.37 | 0.39 | 0.42 | 0.48 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,160,000K ÷ $13,921,000K
= 0.37
Telephone And Data Systems, Inc.'s total asset turnover has shown a declining trend over the past five years. The total asset turnover ratio measures a company's ability to generate sales from its assets. A lower total asset turnover ratio could indicate inefficiency in asset utilization or a decline in revenue generation relative to the size of the assets.
In 2023 and 2022, the total asset turnover ratio remained at 0.37, which suggests that the company generated $0.37 in sales for every $1 of assets. This could indicate stagnation or challenges in increasing revenue relative to the size of the assets.
The decline in total asset turnover from 0.39 in 2021 to 0.37 in 2022 and 2023 could be concerning as it may signal decreasing efficiency in asset utilization or challenges in generating sufficient revenue from the assets. Similarly, the decline from 0.42 in 2020 to 0.37 in 2022 and 0.37 in 2023 further highlights potential inefficiencies or difficulties in maximizing sales from the assets.
The significant drop in the total asset turnover ratio from 0.48 in 2019 to 0.37 in 2023 reflects a notable decrease in the company's ability to generate sales from its assets over the five-year period. This pronounced decline may raise questions about the company's operational efficiency, asset management, or revenue generation strategies.
Overall, the decreasing trend in Telephone And Data Systems, Inc.'s total asset turnover ratio over the years suggests the need for a closer examination of the company's asset utilization and revenue-generating capabilities to address potential inefficiencies and improve overall performance.
Peer comparison
Dec 31, 2023