Telephone and Data Systems Inc (TDS)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -28,000 | -500,000 | 62,000 | 156,000 | 226,000 |
| Revenue | US$ in thousands | 4,964,000 | 5,160,000 | 5,413,000 | 5,329,000 | 5,225,000 |
| Net profit margin | -0.56% | -9.69% | 1.15% | 2.93% | 4.33% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $-28,000K ÷ $4,964,000K
= -0.56%
Telephone and Data Systems Inc's net profit margin has shown a declining trend over the five-year period from December 31, 2020, to December 31, 2024. The net profit margin decreased from 4.33% in 2020 to 2.93% in 2021, indicating a decrease in the company's ability to convert revenue into profit. This downward trend continued with further declines to 1.15% in 2022, -9.69% in 2023, and -0.56% in 2024.
A net profit margin that is negative, such as in 2023 and 2024, indicates that the company's expenses exceed its revenue, resulting in losses rather than profits. This could be a cause for concern as it suggests operational inefficiencies, cost management issues, or other underlying problems impacting the company's profitability.
Overall, the decreasing trend in net profit margin for Telephone and Data Systems Inc points towards potential challenges the company may be facing in maintaining profitability and financial health. Investors and stakeholders may need to closely monitor the company's financial performance and assess the factors contributing to these declining margins.
Peer comparison
Dec 31, 2024