Telephone and Data Systems Inc (TDS)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	364,000	236,000	360,000	367,000	1,429,000
Short-term investments	US$ in thousands	—	—	—	0	3,000
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,090,000	1,184,000	1,514,000	1,180,000	1,153,000
Quick ratio		0.33	0.20	0.24	0.31	1.24

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($364,000K + $—K + $—K) ÷ $1,090,000K
= 0.33

The quick ratio of Telephone and Data Systems Inc has shown varying trends over the five years from December 31, 2020, to December 31, 2024. In December 31, 2020, the quick ratio was 1.24, indicating that the company had $1.24 in liquid assets available to cover each $1 of its current liabilities.

However, the quick ratio experienced a significant decrease in December 31, 2021, dropping to 0.31. This sharp decline suggests a potential liquidity issue as the company had only $0.31 in quick assets to cover each $1 of its current liabilities.

The trend continued to decrease in the following years, reaching 0.24 in December 31, 2022, and further dropping to 0.20 in December 31, 2023. These lower ratios indicate a decreasing ability to meet short-term obligations with readily available liquid assets.

There was a slight improvement in the quick ratio in December 31, 2024, where it increased to 0.33. While this shows a slight enhancement in liquidity compared to the previous year, the ratio still remains relatively low.

Overall, the decreasing trend in the quick ratio of Telephone and Data Systems Inc over the five-year period raises concerns about the company's short-term liquidity position and its ability to meet immediate financial obligations with liquid assets. Further analysis and monitoring of the company's liquidity management are recommended to address these challenges.