Telephone and Data Systems Inc (TDS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -20,000 | -477,000 | 125,000 | 221,000 | 288,000 |
| Revenue | US$ in thousands | 4,964,000 | 5,160,000 | 5,413,000 | 5,329,000 | 5,225,000 |
| Pretax margin | -0.40% | -9.24% | 2.31% | 4.15% | 5.51% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-20,000K ÷ $4,964,000K
= -0.40%
The pretax margin of Telephone and Data Systems Inc has shown a declining trend over the years. In December 31, 2020, the pretax margin stood at 5.51%, indicating that the company was generating 5.51 cents of pre-tax profit for every dollar of revenue. However, it decreased to 4.15% by December 31, 2021, and further declined to 2.31% by December 31, 2022. The trend took a significant turn for the worse in December 31, 2023, with a negative pretax margin of -9.24%, implying that the company was operating at a pre-tax loss. By December 31, 2024, the pretax margin improved slightly to -0.40%.
This declining trend in pretax margin raises concerns about the company's profitability and efficiency in managing its expenses relative to its revenues. Management may need to closely monitor and address the factors contributing to the decreasing pretax margin to ensure sustained profitability and financial health in the future.
Peer comparison
Dec 31, 2024