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.