Telephone and Data Systems Inc (TDS)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -97,000 | -540,000 | -491,000 | -496,000 | -513,000 | -37,000 | -30,000 | -10,000 | 39,000 | 100,000 | 150,000 | 159,000 | 155,000 | 138,000 | 176,000 | 214,000 | 226,000 | 223,000 | 163,000 | 131,000 |
| Total stockholders’ equity | US$ in thousands | 5,091,000 | 5,075,000 | 5,148,000 | 5,204,000 | 5,202,000 | 5,726,000 | 5,752,000 | 5,816,000 | 5,849,000 | 5,904,000 | 5,939,000 | 5,960,000 | 5,927,000 | 5,911,000 | 5,221,000 | 5,252,000 | 4,804,000 | 4,804,000 | 4,738,000 | 4,720,000 |
| ROE | -1.91% | -10.64% | -9.54% | -9.53% | -9.86% | -0.65% | -0.52% | -0.17% | 0.67% | 1.69% | 2.53% | 2.67% | 2.62% | 2.33% | 3.37% | 4.07% | 4.70% | 4.64% | 3.44% | 2.78% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-97,000K ÷ $5,091,000K
= -1.91%
Telephone and Data Systems Inc's return on equity (ROE) has shown a declining trend over the past few years. The ROE started at a low of 2.78% in March 2020, and gradually increased to reach a peak of 4.70% by December 2020. However, the ROE then started to decrease consistently, hitting negative values by March 2023, and reaching a low of -10.64% by September 2024.
This decline in ROE indicates that the company's profitability in relation to shareholders' equity has worsened over time. A negative ROE implies that the company is generating net losses, which can be a concerning sign for investors and stakeholders. It suggests that the company may not be effectively utilizing its equity investments to generate profits.
Management should investigate the underlying reasons for this downward trend in ROE and take appropriate actions to improve the company's financial performance and profitability in order to enhance shareholder value.
Peer comparison
Dec 31, 2024