Telephone and Data Systems Inc (TDS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,683,000 | 13,921,000 | 14,550,000 | 13,493,000 | 12,525,000 |
| Total stockholders’ equity | US$ in thousands | 5,091,000 | 5,202,000 | 5,849,000 | 5,927,000 | 4,804,000 |
| Financial leverage ratio | 2.69 | 2.68 | 2.49 | 2.28 | 2.61 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,683,000K ÷ $5,091,000K
= 2.69
The financial leverage ratio of Telephone and Data Systems Inc has exhibited some fluctuations over the past five years. It decreased from 2.61 in 2020 to 2.28 in 2021, indicating a reduction in the company's reliance on debt in its capital structure. However, in the subsequent years, the ratio increased to 2.49 in 2022, 2.68 in 2023, and 2.69 in 2024.
This upward trend suggests that the company has been increasing its debt levels relative to equity, which might indicate a higher financial risk associated with its capital structure. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt effectively.
Peer comparison
Dec 31, 2024