Telephone and Data Systems Inc (TDS)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,160,000 | 5,205,000 | 5,319,000 | 5,401,000 | 5,413,000 | 5,428,000 | 5,364,000 | 5,326,000 | 5,329,000 | 5,333,000 | 5,329,000 | 5,281,000 | 5,224,000 | 5,184,000 | 5,181,000 | 5,179,000 | 5,175,000 | 5,171,000 | 5,147,000 | 5,141,000 |
| Total current assets | US$ in thousands | 1,660,000 | 1,680,000 | 1,746,000 | 1,903,000 | 2,028,000 | 2,086,000 | 2,051,000 | 2,085,000 | 2,044,000 | 2,297,000 | 1,991,000 | 2,642,000 | 3,026,000 | 2,670,000 | 2,086,000 | 1,950,000 | 1,921,000 | 2,245,000 | 2,228,000 | 2,335,000 |
| Total current liabilities | US$ in thousands | 1,184,000 | 1,327,000 | 1,278,000 | 1,225,000 | 1,514,000 | 1,409,000 | 1,234,000 | 1,115,000 | 1,180,000 | 1,288,000 | 986,000 | 963,000 | 1,153,000 | 965,000 | 882,000 | 900,000 | 962,000 | 1,001,000 | 925,000 | 965,000 |
| Working capital turnover | 10.84 | 14.75 | 11.37 | 7.97 | 10.53 | 8.02 | 6.57 | 5.49 | 6.17 | 5.29 | 5.30 | 3.15 | 2.79 | 3.04 | 4.30 | 4.93 | 5.40 | 4.16 | 3.95 | 3.75 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,160,000K ÷ ($1,660,000K – $1,184,000K)
= 10.84
The working capital turnover ratio for Telephone And Data Systems, Inc. has fluctuated over the past eight quarters, ranging from a low of 5.49 in Q1 2022 to a high of 14.75 in Q3 2023.
A higher working capital turnover ratio indicates that the company is more efficient in utilizing its working capital to generate revenue. In contrast, a lower ratio suggests that the company may be inefficient in managing its working capital.
The company saw a significant improvement in Q3 2023 compared to the previous quarters, with a notable increase in the ratio to 14.75, signaling a more efficient use of working capital during that period. This improvement could be due to better management of inventory, receivables, and payables, resulting in increased sales generated from the working capital employed.
Overall, while there have been fluctuations in the working capital turnover ratio over the quarters, the company's ability to increase this ratio indicates an improvement in efficiency and effectiveness in using its working capital to generate revenue.
Peer comparison
Dec 31, 2023