Telephone and Data Systems Inc (TDS)

Liquidity ratios

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
Current ratio 1.40 1.27 1.37 1.55 1.34 1.48 1.66 1.87 1.73 1.78 2.02 2.74 2.62 2.77 2.37 2.17 2.00 2.24 2.41 2.42
Quick ratio 1.04 0.94 0.99 1.10 0.98 1.11 1.28 1.48 1.36 1.48 1.57 2.29 2.27 2.33 1.91 1.66 1.56 1.84 1.98 2.02
Cash ratio 0.20 0.19 0.20 0.21 0.24 0.31 0.38 0.49 0.31 0.56 0.39 1.09 1.24 1.12 0.64 0.47 0.48 0.85 0.92 1.01

Telephone And Data Systems, Inc. has shown fluctuating current ratios over the past eight quarters, ranging from 1.27 to 1.87. The current ratio was lowest in Q3 2023 and highest in Q1 2022. This ratio indicates the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 suggests the company is able to meet its short-term obligations.

The quick ratio of Telephone And Data Systems, Inc. has also varied over the same period, with values between 1.13 and 1.70. This ratio, which excludes inventory from current assets, provides a more stringent measure of liquidity. The company's quick ratio was lowest in Q3 2023 and highest in Q1 2022. A quick ratio above 1 indicates that the company can cover its short-term liabilities without relying on selling inventory.

Lastly, the cash ratio of Telephone And Data Systems, Inc. has ranged between 0.31 and 0.65 in the last eight quarters. This ratio, the most conservative measure of liquidity, represents the proportion of current liabilities that could be covered by the company's cash and cash equivalents alone. The company's cash ratio was lowest in Q3 2022 and highest in Q1 2022.

Overall, the analysis of the liquidity ratios indicates that Telephone And Data Systems, Inc. has generally maintained a solid liquidity position, with the ability to meet its short-term financial obligations. However, the fluctuations in these ratios over time suggest the need for ongoing monitoring of the company's liquidity management.

Additional liquidity measure

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
Cash conversion cycle days 46.56 -5.42 40.25 58.88 27.54 23.59 27.38 32.48 20.07 12.46 40.22 34.37 8.21 32.89 37.56 42.56 30.77 20.43 25.23 31.97

The cash conversion cycle for Telephone And Data Systems, Inc. has exhibited fluctuations over the past eight quarters. In Q1 2023 and Q2 2023, the company experienced extended cash conversion cycles of 69.87 days and 54.91 days, respectively. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash during these periods.

Conversely, in Q3 2023, the cash conversion cycle decreased significantly to 19.64 days, demonstrating an improvement in the company's efficiency in managing its working capital. However, this trend was not sustained in Q4 2023, where the cash conversion cycle increased to 52.48 days.

Comparing the Q4 figures across the years, there appears to be consistency in the range of days it takes for Telephone And Data Systems, Inc. to complete a cash conversion cycle, with Q4 2022 at 49.75 days and Q4 2023 at 52.48 days.

Overall, fluctuations in the cash conversion cycle highlight the company's effectiveness in managing its liquidity, working capital, and operational efficiency. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's cash management practices.