Telephone and Data Systems Inc (TDS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 13,683,000 | 13,921,000 | 14,550,000 | 13,493,000 | 12,525,000 |
| Operating ROA | 0.46% | -2.97% | 2.25% | 3.54% | 3.80% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $63,000K ÷ $13,683,000K
= 0.46%
Telephone and Data Systems Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the years, as evidenced by the data provided.
As of December 31, 2020, the operating ROA stood at 3.80%, indicating that the company generated $3.80 in operating income for every $100 in assets. The slight decrease to 3.54% by December 31, 2021 suggests a small decline in profitability relative to the previous year.
However, in the subsequent years, the operating ROA experienced more significant declines. By December 31, 2022, the operating ROA dropped to 2.25%, signaling a reduced operating efficiency and profitability in utilizing its assets. The negative operating ROA of -2.97% by December 31, 2023 is concerning, suggesting that the company's operating income was insufficient to cover its assets. This negative value indicates operational losses.
The slight improvement to 0.46% by December 31, 2024 is a positive sign but still below the levels seen in earlier years. It indicates that the company is still not generating optimal returns from its assets compared to previous years.
Overall, the trend in Telephone and Data Systems Inc's operating ROA reflects fluctuations and declines, with a notable negative performance in 2023. This indicates potential challenges in operational efficiency and profitability that the company may need to address to enhance its financial performance.
Peer comparison
Dec 31, 2024