Telephone and Data Systems Inc (TDS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 54.77% | 52.61% | 53.61% | 54.95% |
| Operating profit margin | 1.27% | -8.02% | 6.06% | 8.95% | 9.11% |
| Pretax margin | -0.40% | -9.24% | 2.31% | 4.15% | 5.51% |
| Net profit margin | -0.56% | -9.69% | 1.15% | 2.93% | 4.33% |
Telephone and Data Systems Inc's profitability ratios have shown some fluctuations over the years.
- The Gross Profit Margin, which measures the percentage of revenue that exceeds the cost of goods sold, decreased from 54.95% in 2020 to 52.61% in 2022 but then increased significantly to 100.00% in 2024. This jump could indicate a change in the company's cost structure or revenue mix.
- The Operating Profit Margin, which shows the percentage of revenue that remains after operating expenses are deducted, experienced a downward trend from 9.11% in 2020 to -8.02% in 2023 before recovering to 1.27% in 2024. The negative margin in 2023 may suggest operational challenges that the company faced during that year.
- The Pretax Margin, revealing the percentage of revenue retained after all expenses except for taxes are deducted, also exhibited a decline from 5.51% in 2020 to -9.24% in 2023, before improving slightly to -0.40% in 2024. The negative margins in 2023 and 2024 indicate that the company's expenses were exceeding its revenues during those years.
- The Net Profit Margin, which represents the percentage of revenue that remains as net income after all expenses, including taxes, decreased from 4.33% in 2020 to -9.69% in 2023, before recovering slightly to -0.56% in 2024. The negative margin in 2023 and 2024 suggests that the company was not profitable during those periods.
Overall, the company's profitability ratios reflect a mixed performance with some periods of improvement but also challenges in maintaining profitability levels. It would be essential for Telephone and Data Systems Inc to closely monitor its cost management and revenue generation strategies to ensure sustained profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.46% | -2.97% | 2.25% | 3.54% | 3.80% |
| Return on assets (ROA) | -0.20% | -3.59% | 0.43% | 1.16% | 1.80% |
| Return on total capital | 5.09% | -4.48% | 2.58% | 4.81% | 5.85% |
| Return on equity (ROE) | -0.55% | -9.61% | 1.06% | 2.63% | 4.70% |
Telephone and Data Systems Inc's profitability ratios have shown some fluctuations over the years.
- Operating return on assets (Operating ROA) has decreased from 3.80% in December 31, 2020, to 0.46% in December 31, 2024, with a significant drop in 2023 to -2.97%. This indicates that the company's operating profitability in relation to its assets has been on a downward trend, although it showed a slight improvement in the most recent year.
- Return on assets (ROA) also exhibited a decline from 1.80% in December 31, 2020, to -0.20% in December 31, 2024. The negative values in 2023 and 2024 suggest that the company's overall profitability in relation to its total assets has been negative for those years.
- Return on total capital fluctuated, starting at 5.85% in December 31, 2020, reaching a low of -4.48% in December 31, 2023, and then slightly recovering to 5.09% in December 31, 2024. This ratio signifies the return generated from the total capital employed by the company, and the negative values in 2023 indicate a possible decrease in efficiency in utilizing its capital.
- Return on equity (ROE) displayed a similar pattern, declining from 4.70% in December 31, 2020, to -0.55% in December 31, 2024. The negative values in 2023 and 2024 suggest that shareholders' return on their equity investments has been negative during those years.
Overall, the trends in these profitability ratios indicate varying levels of performance over the years, with some years showing positive returns while others reflecting challenges in generating profits relative to assets, capital, and equity.