Telephone and Data Systems Inc (TDS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 257,000 | -309,000 | -188,000 | -197,000 | -234,000 | 266,000 | 206,000 | 235,000 | 299,000 | 351,000 | 438,000 | 441,000 | 454,000 | 450,000 | 474,000 | 490,000 | 458,000 | 444,000 | 380,000 | 354,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 5.05% | -6.09% | -3.65% | -3.79% | -4.50% | 4.65% | 3.58% | 4.04% | 5.11% | 5.95% | 7.37% | 7.40% | 7.66% | 7.61% | 9.08% | 9.33% | 9.53% | 9.24% | 8.02% | 7.50% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $257,000K ÷ ($—K + $5,091,000K)
= 5.05%
The return on total capital for Telephone and Data Systems Inc has exhibited some fluctuations over the reported periods. Starting from 7.50% in March 2020, the return on total capital increased gradually to reach a peak of 9.53% by December 2020. Subsequently, the return on total capital experienced a slight decline to 7.40% in March 2022 before dropping significantly to 3.58% by June 2023. The return on total capital turned negative, standing at -4.50% by December 2023. However, there was a partial recovery as the return on total capital improved to 5.05% by December 2024. The downward trend in the return on total capital from March 2023 to September 2024 may indicate challenges in efficiently utilizing the company's total capital to generate returns. This trend warrants a closer examination of the factors impacting the company's performance and capital allocation strategies.
Peer comparison
Dec 31, 2024