Telephone and Data Systems Inc (TDS)

Financial leverage ratio

		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
Total assets	US$ in thousands	13,683,000	13,726,000	13,872,000	13,866,000	13,922,000	14,414,000	14,406,000	14,539,000	14,550,000	14,479,000	14,242,000	14,124,000	13,493,000	13,446,000	12,780,000	13,407,000	12,525,000	11,895,000	11,161,000	10,895,000
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
Financial leverage ratio		2.69	2.70	2.69	2.66	2.68	2.52	2.50	2.50	2.49	2.45	2.40	2.37	2.28	2.27	2.45	2.55	2.61	2.48	2.36	2.31

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 shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The ratio increased from 2.31 on March 31, 2020, to 2.69 by December 31, 2024. This indicates that the company's reliance on debt to finance its operations and growth has been increasing over the years, with some minor fluctuations.

Overall, the increasing trend in the financial leverage ratio suggests that the company may be taking on more debt to fund its expansion or investments, which could potentially amplify the company's returns through leverage but also increase its financial risk and vulnerability to economic downturns. It is important for stakeholders to closely monitor the company's ability to manage its debt levels effectively to ensure sustainable growth and financial stability.