Telephone and Data Systems Inc (TDS)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -490,000 | 115,000 | 189,000 | 245,000 | 185,000 |
| Revenue | US$ in thousands | 5,160,000 | 5,413,000 | 5,329,000 | 5,225,000 | 5,176,000 |
| Pretax margin | -9.50% | 2.12% | 3.55% | 4.69% | 3.57% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-490,000K ÷ $5,160,000K
= -9.50%
Telephone And Data Systems, Inc.'s pretax margin has been fluctuating over the past five years, ranging from 4.08% in 2019 to -9.24% in 2023. The pretax margin indicates the company's efficiency in generating profits before taxes relative to its revenue. The negative pretax margin in 2023 suggests that the company incurred more expenses than revenue generated, resulting in a loss before taxes. In contrast, the positive pretax margins in 2020, 2021, and 2022 indicate that the company was able to generate profits before tax expenses during those years, with the highest being 5.51% in 2020. The downward trend from 5.51% in 2020 to -9.24% in 2023 warrants further investigation into the company's cost structure, revenue streams, and overall financial performance to understand the factors contributing to this decline in pretax margin.
Peer comparison
Dec 31, 2023