Telephone and Data Systems Inc (TDS)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,921,000 | 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 | 10,781,000 | 10,881,000 | 10,795,000 | 10,787,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 4,653,000 | 4,646,000 | 4,625,000 | 4,611,000 |
| Financial leverage ratio | 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 | 2.32 | 2.34 | 2.33 | 2.34 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,921,000K ÷ $5,202,000K
= 2.68
The financial leverage ratio of Telephone And Data Systems, Inc. has been gradually increasing over the past eight quarters. The ratio stood at 2.68 in Q4 2023, which signifies that the company's level of debt relative to its equity is relatively high compared to previous quarters. This increase in leverage could indicate that the company has been relying more on debt financing to support its operations and growth strategies.
While a higher leverage ratio can amplify returns on equity when the company is performing well, it also poses greater financial risk in times of economic downturn or operational challenges. Investors and creditors may closely monitor this trend in the leverage ratio to assess the company's ability to manage its debt levels and meet its financial obligations.
Overall, the increasing trend in the financial leverage ratio suggests that Telephone And Data Systems, Inc. may have taken on more debt relative to its equity, which could impact its financial flexibility and risk profile in the future. It is essential for the company to carefully balance its capital structure to ensure sustainable growth and financial stability.
Peer comparison
Dec 31, 2023