Telephone and Data Systems Inc (TDS)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.03 1.59 1.51 1.58 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
Quick ratio 0.33 0.41 0.32 0.27 0.20 0.19 0.20 0.21 0.24 0.31 0.38 0.49 0.31 0.56 0.88 1.09 1.24 1.12 0.64 0.47
Cash ratio 0.33 0.41 0.32 0.27 0.20 0.19 0.20 0.21 0.24 0.31 0.38 0.49 0.31 0.56 0.88 1.09 1.24 1.12 0.64 0.47

The liquidity ratios of Telephone and Data Systems Inc have shown fluctuating trends over the past few years.

- The current ratio, a measure of the company's ability to cover its short-term liabilities with its current assets, has generally decreased from 2.17 in March 2020 to 0.03 in December 2024, indicating a decline in liquidity and potential difficulties meeting short-term obligations.

- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also followed a downward trajectory, dropping from 0.47 in March 2020 to 0.33 in December 2024. This suggests a diminishing ability to meet immediate obligations without relying on inventory.

- The cash ratio, which specifically examines the company's ability to pay off short-term liabilities with cash and cash equivalents, mirrored the decreasing trend observed in the quick ratio, implying a weakening liquidity position.

Overall, the declining trend in all three liquidity ratios indicates a potential liquidity risk for Telephone and Data Systems Inc, as the company may face challenges in meeting its short-term financial obligations in the future. Monitoring and managing liquidity carefully will be crucial for the company's financial stability and operational continuity.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 25.68 23.05 20.04 26.79 32.53 27.65 31.22 38.10 38.14 35.75 31.36 27.31 26.29 20.98 28.03 21.98 23.87 25.87 23.88 34.16

The cash conversion cycle of Telephone and Data Systems Inc has shown fluctuations over the past few years, indicating changes in its efficiency in managing cash flows.

From March 31, 2020, to March 31, 2021, the company managed to significantly reduce its cash conversion cycle from 34.16 days to 21.98 days. This improvement suggests that the company became more efficient in converting its investments in inventory and accounts receivable into cash during this period.

However, from June 30, 2021, to December 31, 2024, the trend was less consistent. The cash conversion cycle increased and decreased irregularly during these quarters, reaching its peak at 38.14 days on December 31, 2022.

Overall, the data reflects a somewhat volatile cash conversion cycle for Telephone and Data Systems Inc, which could indicate challenges in managing working capital efficiently. Further analysis of the company's operations and financial strategies may be necessary to identify the underlying factors contributing to these fluctuations and to implement measures to improve cash flow management in the future.