Telephone and Data Systems Inc (TDS)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 63,000 | -414,000 | 328,000 | 477,000 | 476,000 |
| Revenue | US$ in thousands | 4,964,000 | 5,160,000 | 5,413,000 | 5,329,000 | 5,225,000 |
| Operating profit margin | 1.27% | -8.02% | 6.06% | 8.95% | 9.11% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $63,000K ÷ $4,964,000K
= 1.27%
The operating profit margin of Telephone and Data Systems Inc has exhibited fluctuating trends over the past five years.
In December 2020, the operating profit margin stood at 9.11%, indicating that the company was able to generate 9.11 cents of operating profit for every dollar of revenue.
By December 2021, the operating profit margin slightly decreased to 8.95%, suggesting a slight decline in operational efficiency compared to the previous year.
However, by December 2022, there was a more significant drop in the operating profit margin, which decreased to 6.06%. This decline may indicate challenges faced by the company in managing operating expenses relative to its revenue.
The trend worsened in December 2023 when the operating profit margin turned negative, standing at -8.02%. A negative operating profit margin implies that the company's operating expenses exceeded its operating income, which can raise concerns about the company's ability to control costs effectively.
Fortunately, by December 2024, the operating profit margin improved to 1.27%, indicating a return to a positive operating profit margin. While the increase is positive, it still remains relatively low compared to previous years.
Overall, the fluctuating operating profit margin of Telephone and Data Systems Inc over the five-year period highlights the importance of closely monitoring and managing operational efficiency to ensure sustainable profitability.
Peer comparison
Dec 31, 2024