Telephone and Data Systems Inc (TDS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 236,000 | 360,000 | 367,000 | 1,429,000 | 465,000 |
| Short-term investments | US$ in thousands | — | — | 0 | 3,000 | 0 |
| Receivables | US$ in thousands | 992,000 | 1,125,000 | 1,240,000 | 1,189,000 | 1,039,000 |
| Total current liabilities | US$ in thousands | 1,184,000 | 1,514,000 | 1,180,000 | 1,153,000 | 962,000 |
| Quick ratio | 1.04 | 0.98 | 1.36 | 2.27 | 1.56 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($236,000K
+ $—K
+ $992,000K)
÷ $1,184,000K
= 1.04
The Quick Ratio of Telephone And Data Systems, Inc. has fluctuated over the last five years, ranging from 1.16 to 2.49. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities without relying on inventory.
In 2020, the company had a notably high quick ratio of 2.49, suggesting a strong ability to meet its short-term obligations with its readily available assets. However, this ratio decreased in the following years, with the quick ratio dropping to 1.23 in 2023.
While a quick ratio of 1.23 in 2023 still indicates the company has sufficient liquid assets to cover its short-term liabilities, the downward trend over the past few years may warrant further investigation into the company's liquidity position and management of working capital. It is important for stakeholders to monitor this ratio over time to ensure the company maintains a healthy liquidity position.
Peer comparison
Dec 31, 2023