Telephone and Data Systems Inc (TDS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -500,000 | 62,000 | 156,000 | 226,000 | 121,000 |
| Total stockholders’ equity | US$ in thousands | 5,202,000 | 5,849,000 | 5,927,000 | 4,804,000 | 4,653,000 |
| ROE | -9.61% | 1.06% | 2.63% | 4.70% | 2.60% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-500,000K ÷ $5,202,000K
= -9.61%
Telephone And Data Systems, Inc.'s return on equity (ROE) has exhibited a declining trend over the past five years. The ROE was notably negative at -10.94% in 2023, which indicates that the company generated a net loss in relation to its equity. This is a concerning sign as it suggests inefficiency in the utilization of shareholder funds to generate profits.
The negative ROE in 2023 follows a marginal negative ROE of -0.12% in 2022. This implies that the company's profitability has been under pressure in recent years. In 2021, the ROE improved slightly to 1.97%, but it still remained relatively low. The highest ROE in the period was 4.70% in 2020, followed by 2.60% in 2019. These figures suggest that the company has struggled to consistently generate substantial returns on shareholder equity.
Overall, the downward trend in ROE for Telephone And Data Systems, Inc. raises concerns about the company's ability to efficiently utilize its equity to generate profits for its shareholders. Further analysis of the company's financial statements and operations may be warranted to identify the underlying factors contributing to the declining ROE.
Peer comparison
Dec 31, 2023