Telephone and Data Systems Inc (TDS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 63,000 | -475,000 | -347,000 | -370,000 | -354,000 | 201,000 | 190,000 | 220,000 | 274,000 | 267,000 | 299,000 | 294,000 | 261,000 | 258,000 | 276,000 | 296,000 | 258,000 | 245,000 | 187,000 | 157,000 |
| Total assets | US$ in thousands | 13,683,000 | 13,726,000 | 13,872,000 | 13,866,000 | 13,922,000 | 14,414,000 | 14,406,000 | 14,539,000 | 14,550,000 | 14,479,000 | 14,242,000 | 14,124,000 | 13,493,000 | 13,446,000 | 12,780,000 | 13,407,000 | 12,525,000 | 11,895,000 | 11,161,000 | 10,895,000 |
| Operating ROA | 0.46% | -3.46% | -2.50% | -2.67% | -2.54% | 1.39% | 1.32% | 1.51% | 1.88% | 1.84% | 2.10% | 2.08% | 1.93% | 1.92% | 2.16% | 2.21% | 2.06% | 2.06% | 1.68% | 1.44% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $63,000K ÷ $13,683,000K
= 0.46%
Telephone and Data Systems Inc's operating return on assets (ROA), a key indicator of operational efficiency and profitability, has displayed variability over the reporting periods. The trend shows a gradual increase from 1.44% in March 2020 to a peak of 2.21% in March 2021, indicating improving utilization of assets to generate operating income. Subsequently, the operating ROA fluctuated around the 2% mark until September 2022 but experienced a decline thereafter. The most significant decline occurred in December 2023 and continued into the following reporting periods, reaching a low of -3.46% in September 2024.
While the negative operating ROA figures in late 2023 and 2024 may be concerning, it is essential to investigate the reasons behind these declines, such as changes in operational performance, asset utilization, or unique circumstances affecting the company's profitability. Monitoring this metric closely will help stakeholders assess the company's ability to generate profits from its operational assets effectively and sustainably in the future.
Peer comparison
Dec 31, 2024