Telephone and Data Systems Inc (TDS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.44% | 66.41% | 67.71% | 66.91% | 65.94% |
| Operating profit margin | -8.02% | 2.25% | 4.90% | 4.96% | 3.46% |
| Pretax margin | -9.50% | 2.12% | 3.55% | 4.69% | 3.57% |
| Net profit margin | -9.69% | 1.15% | 2.93% | 4.33% | 2.34% |
Telephone And Data Systems, Inc. has shown some fluctuations in its profitability ratios over the past five years. The gross profit margin has generally been stable, hovering around the mid-50% range, indicating the company's ability to generate profit from its core operations. However, the operating profit margin has been more volatile, with a noticeable decline in 2023 compared to the previous year.
The pretax margin has also fluctuated significantly, with a significant negative margin in 2023, indicating that the company's expenses and other costs have outpaced its revenue before taxes. This could be a cause for concern for investors and stakeholders as it suggests the company may be struggling to manage its costs effectively.
The net profit margin, which represents the company's overall profitability after all expenses have been deducted, has shown a downward trend over the five-year period. The negative net profit margin in 2023 is particularly alarming, indicating that the company is not generating profits after all expenses, including taxes. This could point to underlying operational issues or financial challenges that need to be addressed.
Overall, the declining profitability ratios of Telephone And Data Systems, Inc. raise concerns about its financial health and operational efficiency. Investors and stakeholders may want to further investigate the reasons behind these trends and consider the company's long-term viability and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.97% | 0.84% | 1.93% | 2.07% | 1.66% |
| Return on assets (ROA) | -3.59% | 0.43% | 1.16% | 1.80% | 1.12% |
| Return on total capital | -4.73% | 4.94% | 7.10% | 8.60% | 7.52% |
| Return on equity (ROE) | -9.61% | 1.06% | 2.63% | 4.70% | 2.60% |
Over the past five years, Telephone And Data Systems, Inc.'s profitability ratios have experienced fluctuations. The Operating Return on Assets (Operating ROA) ranged from 1.04% to 2.24%, indicating the company's ability to generate operating profits from its asset base. The Return on Assets (ROA) exhibited a wider range from -4.09% to 1.80%, showing variability in the company's overall ability to generate profits from its assets.
The Return on Total Capital ranged from 3.23% to 5.61%, reflecting the company's efficiency in generating returns for both equity and debt holders. Meanwhile, the Return on Equity (ROE) fluctuated between -10.94% and 4.70%, implying varying levels of profitability for shareholders over the years.
Overall, the profitability ratios of Telephone And Data Systems, Inc. reflect mixed performance over the past five years, with fluctuations in profitability and efficiency in capital utilization. Further analysis of the underlying factors driving these trends would be necessary to gain a more comprehensive understanding of the company's financial performance.