Telephone and Data Systems Inc (TDS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -28,000 | -500,000 | 62,000 | 156,000 | 226,000 |
| Total stockholders’ equity | US$ in thousands | 5,091,000 | 5,202,000 | 5,849,000 | 5,927,000 | 4,804,000 |
| ROE | -0.55% | -9.61% | 1.06% | 2.63% | 4.70% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-28,000K ÷ $5,091,000K
= -0.55%
Based on the provided data, the return on equity (ROE) for Telephone and Data Systems Inc has experienced a significant decline over the period from December 31, 2020, to December 31, 2024.
In December 2020, the company's ROE stood at 4.70%, indicating that for each dollar of shareholders' equity, the company generated a profit of 4.70 cents. However, by December 2024, the ROE deteriorated to -0.55%, signifying that the company was generating a loss in relation to its shareholders' equity.
The downward trend in ROE suggests that Telephone and Data Systems Inc may be facing challenges in efficiently utilizing its equity to generate profits. A declining ROE can be a cause for concern for investors and stakeholders as it reflects a weakening profitability and efficiency of the company in generating returns for its shareholders.
Further analysis and investigation into the factors contributing to this decline in ROE are warranted to assess the financial health and performance of Telephone and Data Systems Inc.
Peer comparison
Dec 31, 2024