Telephone and Data Systems Inc (TDS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 364,000 | 236,000 | 360,000 | 367,000 | 1,429,000 |
| Short-term investments | US$ in thousands | — | — | — | 0 | 3,000 |
| Total current liabilities | US$ in thousands | 1,090,000 | 1,184,000 | 1,514,000 | 1,180,000 | 1,153,000 |
| Cash ratio | 0.33 | 0.20 | 0.24 | 0.31 | 1.24 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($364,000K
+ $—K)
÷ $1,090,000K
= 0.33
The cash ratio of Telephone and Data Systems Inc, a telecommunications company, has shown a fluctuating trend over the past five years. As of December 31, 2020, the cash ratio was 1.24, indicating that the company had $1.24 in cash available to cover each $1 of its current liabilities. However, this ratio decreased significantly to 0.31 by December 31, 2021, suggesting a lower level of liquidity.
Subsequently, by December 31, 2022 and December 31, 2023, the cash ratio continued to decline to 0.24 and 0.20, respectively, indicating a decreasing ability to cover short-term obligations with cash on hand.
Interestingly, by December 31, 2024, the cash ratio slightly improved to 0.33, although it remained below the 2020 level. This improvement could signify a better liquidity position compared to the previous two years but still indicates a lower cash reserve relative to current liabilities.
Overall, the downward trend in the cash ratio of Telephone and Data Systems Inc over the five-year period raises concerns about the company's liquidity position and ability to meet its short-term obligations with available cash resources. Investors and creditors may consider monitoring the company's cash management strategies to ensure sufficient liquidity in the future.
Peer comparison
Dec 31, 2024