Telephone and Data Systems Inc (TDS)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 54.46% | 65.36% | 65.54% | 66.17% | 66.78% | 67.32% | 67.54% | 67.57% | 68.01% | 67.47% | 67.71% | 67.75% | 66.96% | 66.71% | 66.20% | 65.75% | 65.99% | 65.89% | 66.10% | 55.13% |
| Operating profit margin | -8.02% | 1.63% | 0.49% | 1.04% | 2.25% | 3.15% | 4.68% | 4.62% | 4.90% | 4.84% | 5.18% | 5.60% | 4.94% | 4.73% | 3.61% | 3.03% | 3.46% | 3.56% | 4.00% | 4.26% |
| Pretax margin | -9.50% | 0.52% | -0.21% | 0.70% | 2.12% | 3.21% | 4.55% | 3.72% | 3.57% | 3.39% | 3.87% | 4.98% | 4.69% | 4.63% | 3.65% | 3.19% | 3.59% | 3.65% | 4.02% | 4.12% |
| Net profit margin | -9.69% | -0.37% | -0.51% | 0.19% | 1.16% | 2.17% | 3.09% | 2.97% | 2.93% | 2.63% | 3.34% | 4.09% | 4.33% | 4.30% | 3.15% | 2.53% | 2.34% | 2.44% | 2.99% | 3.00% |
Telephone And Data Systems, Inc. has experienced fluctuations in its profitability ratios over the past eight quarters. The gross profit margin has remained relatively stable, ranging from 52.29% to 54.77%. This indicates that the company is effectively managing its cost of goods sold.
However, the operating profit margin, which reflects the company's ability to control operating expenses, has shown more variability, ranging from 1.13% to 5.20%. This suggests that there may be challenges in managing operational costs efficiently.
The pretax margin, indicating the company's profitability before taxes, has also fluctuated significantly, ranging from -9.24% to 5.05%. The negative values in some quarters may raise concerns about the company's ability to generate sustainable profits.
Similarly, the net profit margin, which represents the company's profitability after all expenses, including taxes, has varied widely from -11.03% to 1.95%. The negative margins in several quarters highlight the challenges that Telephone And Data Systems, Inc. may be facing in generating bottom-line profits.
Overall, the analysis of the profitability ratios suggests that Telephone And Data Systems, Inc. has faced challenges in maintaining consistent profitability levels, with fluctuations across gross profit margin, operating profit margin, pretax margin, and net profit margin over the past eight quarters.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.97% | 0.59% | 0.18% | 0.39% | 0.84% | 1.18% | 1.76% | 1.74% | 1.93% | 1.92% | 2.16% | 2.21% | 2.06% | 2.06% | 1.68% | 1.44% | 1.66% | 1.69% | 1.91% | 2.03% |
| Return on assets (ROA) | -3.59% | -0.13% | -0.19% | 0.07% | 0.43% | 0.81% | 1.17% | 1.12% | 1.16% | 1.04% | 1.39% | 1.61% | 1.80% | 1.87% | 1.46% | 1.20% | 1.12% | 1.16% | 1.43% | 1.43% |
| Return on total capital | -4.75% | 4.54% | 3.58% | 4.01% | 4.96% | 5.62% | 6.90% | 6.88% | 7.12% | 7.16% | 8.37% | 8.49% | 8.58% | 8.22% | 7.24% | 6.86% | 7.54% | 7.75% | 8.19% | 8.33% |
| Return on equity (ROE) | -9.61% | -0.33% | -0.47% | 0.17% | 1.08% | 2.00% | 2.80% | 2.65% | 2.63% | 2.37% | 3.41% | 4.11% | 4.70% | 4.64% | 3.44% | 2.78% | 2.60% | 2.71% | 3.33% | 3.34% |
Based on the provided data for Telephone And Data Systems, Inc., the profitability ratios indicate the following:
1. Operating return on assets (Operating ROA):
- The Operating ROA has shown fluctuating performance over the observed quarters, ranging from 0.42% to 1.96%.
- Generally, the company has been able to generate a reasonable return on assets from its core operations, with the highest performance in Q2 2022 and a dip in Q2 and Q3 2023.
2. Return on assets (ROA):
- The ROA has been negative in most quarters, indicating that the company's net income generated from its assets has not been sufficient to cover its operating expenses and interest costs.
- The firm has shown some improvement in Q4 2023 compared to previous quarters, but the negative trend in most periods raises concerns about its profitability and efficiency in asset utilization.
3. Return on total capital:
- The Return on total capital has also varied over the quarters, with values ranging from 2.25% to 4.82%.
- The company's ability to generate returns on the total capital employed has shown some fluctuations, with a general decreasing trend from Q2 2022 to Q3 2023.
4. Return on equity (ROE):
- The ROE has been negative for the most part, indicating that the company has been unable to generate positive returns for its shareholders.
- There has been a slight improvement in Q4 2023 compared to earlier quarters, but the negative trend in ROE raises concerns about the company's ability to create value for its shareholders.
In conclusion, Telephone And Data Systems, Inc. has exhibited mixed performance in profitability ratios, with fluctuations in operating efficiency and challenges in generating positive returns for both total capital and equity holders. The negative trends in ROA and ROE suggest the need for the company to focus on improving its operational efficiency and profitability to enhance overall financial performance.