Telephone and Data Systems Inc (TDS)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,964,000 | 5,160,000 | 5,413,000 | 5,329,000 | 5,225,000 |
| Total assets | US$ in thousands | 13,683,000 | 13,921,000 | 14,550,000 | 13,493,000 | 12,525,000 |
| Total asset turnover | 0.36 | 0.37 | 0.37 | 0.39 | 0.42 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,964,000K ÷ $13,683,000K
= 0.36
The total asset turnover ratio measures a company's efficiency in generating revenue from its total assets. A higher ratio indicates that the company is utilizing its assets more effectively to generate sales.
Based on the data provided for Telephone and Data Systems Inc, the total asset turnover has shown a declining trend over the years. In December 31, 2020, the ratio was 0.42, indicating that the company generated $0.42 in sales for every dollar of total assets. However, by December 31, 2024, the ratio had decreased to 0.36, showing a decreasing trend in asset efficiency.
This decline in total asset turnover could suggest that Telephone and Data Systems Inc may be facing challenges in effectively utilizing its assets to generate revenue. It is important for the company to investigate the underlying reasons for this trend and assess strategies to improve asset turnover efficiency to enhance overall financial performance.
Peer comparison
Dec 31, 2024