Telephone and Data Systems Inc (TDS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 236,000 | 360,000 | 367,000 | 1,429,000 | 465,000 |
| Short-term investments | US$ in thousands | — | — | 0 | 3,000 | 0 |
| Total current liabilities | US$ in thousands | 1,184,000 | 1,514,000 | 1,180,000 | 1,153,000 | 962,000 |
| Cash ratio | 0.20 | 0.24 | 0.31 | 1.24 | 0.48 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($236,000K
+ $—K)
÷ $1,184,000K
= 0.20
The cash ratio of Telephone And Data Systems, Inc. has shown a declining trend over the past five years. The ratio decreased from 1.36 in 2020 to 0.32 in 2023. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over this period.
A cash ratio below 1 suggests that the company may have insufficient liquid assets to cover its current liabilities, which could potentially lead to liquidity problems. The decreasing trend in the cash ratio could be a cause for concern as it may indicate a decrease in the company's overall liquidity position.
It is important for investors and stakeholders to closely monitor the company's cash management practices and overall liquidity position to ensure its ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023