Telephone and Data Systems Inc (TDS)
Working capital 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 current assets | US$ in thousands | 33,000 | 1,660,000 | 2,028,000 | 2,044,000 | 3,026,000 |
| Total current liabilities | US$ in thousands | 1,090,000 | 1,184,000 | 1,514,000 | 1,180,000 | 1,153,000 |
| Working capital turnover | — | 10.84 | 10.53 | 6.17 | 2.79 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,964,000K ÷ ($33,000K – $1,090,000K)
= —
The working capital turnover ratio for Telephone and Data Systems Inc has shown a significant upward trend over the past few years. Starting at 2.79 in December 31, 2020, the ratio has more than doubled to reach 6.17 in December 31, 2021. This increase continued in the following years, with the ratio reaching 10.53 by December 31, 2022, and further improving to 10.84 by December 31, 2023. However, the data is not available for December 31, 2024.
This upward trend in the working capital turnover ratio indicates that the company is becoming more efficient in utilizing its working capital to generate revenue. A higher ratio reflects that the company is generating more revenue per unit of working capital employed, which is a positive sign of operational efficiency and effective management of the company's resources. It suggests that Telephone and Data Systems Inc is effectively managing its working capital to support its business operations and potentially improve its financial performance.
Peer comparison
Dec 31, 2024