Telephone and Data Systems Inc (TDS)

Working capital 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 current assets US$ in thousands 1,660,000 2,028,000 2,044,000 3,026,000 1,921,000
Total current liabilities US$ in thousands 1,184,000 1,514,000 1,180,000 1,153,000 962,000
Working capital turnover 10.84 10.53 6.17 2.79 5.40

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,160,000K ÷ ($1,660,000K – $1,184,000K)
= 10.84

Telephone And Data Systems, Inc.'s working capital turnover has shown a fluctuating trend over the past five years. The ratio increased from 5.40 in 2019 to 10.84 in 2023, indicating a significant improvement in the efficiency of utilizing working capital to generate revenue. This suggests that the company has been able to generate sales at a faster pace relative to its investment in working capital.

The highest working capital turnover was observed in 2023, indicating that the company efficiently managed its working capital during that period. On the other hand, the lowest turnover was recorded in 2020 at 2.79, indicating a slower rate of generating sales relative to the investment in working capital during that year.

Overall, the increasing trend in working capital turnover from 2019 to 2023 suggests an improvement in the company's operational efficiency and liquidity management. However, it is essential to further analyze the components of working capital to gain a deeper understanding of the factors driving these variations in turnover ratios.


Peer comparison

Dec 31, 2023