Telephone and Data Systems Inc (TDS)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,202,000 | 5,849,000 | 5,927,000 | 4,804,000 | 4,653,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $5,202,000K
= 0.00
The debt-to-equity ratio of Telephone And Data Systems, Inc. has been fluctuating over the past five years. In 2023, the ratio increased to 0.79 from 0.64 in 2022. This indicates that the company relied more on debt to finance its operations compared to equity.
Looking back, we see a significant increase from 0.50 in 2021 to 0.71 in 2020, suggesting a surge in debt utilization relative to equity. However, in 2019, the ratio was at the same level as in 2021, at 0.50.
The trend in the debt-to-equity ratio indicates variations in the company's capital structure and financial risk. A higher ratio implies higher financial leverage and potential risk, as it indicates a greater reliance on debt financing. On the other hand, a lower ratio suggests a more conservative capital structure with a higher proportion of equity funding.
It would be essential for stakeholders to further analyze the reasons behind these fluctuations in the debt-to-equity ratio to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2023