Telephone and Data Systems Inc (TDS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 257,000 | -309,000 | -188,000 | -197,000 | -234,000 | 266,000 | 206,000 | 235,000 | 299,000 | 351,000 | 438,000 | 441,000 | 454,000 | 450,000 | 474,000 | 490,000 | 458,000 | 444,000 | 380,000 | 354,000 |
| Interest expense (ttm) | US$ in thousands | 277,000 | 272,000 | 258,000 | 247,000 | 243,000 | 232,000 | 216,000 | 194,000 | 174,000 | 158,000 | 166,000 | 212,000 | 232,000 | 243,000 | 232,000 | 184,000 | 168,000 | 155,000 | 154,000 | 159,000 |
| Interest coverage | 0.93 | -1.14 | -0.73 | -0.80 | -0.96 | 1.15 | 0.95 | 1.21 | 1.72 | 2.22 | 2.64 | 2.08 | 1.96 | 1.85 | 2.04 | 2.66 | 2.73 | 2.86 | 2.47 | 2.23 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $257,000K ÷ $277,000K
= 0.93
The interest coverage ratio of Telephone and Data Systems Inc has shown varying trends over the historical period from March 31, 2020, to December 31, 2024. The ratio started at a moderate level of 2.23 on March 31, 2020, indicating the company's ability to cover its interest expenses approximately 2.23 times.
Subsequently, the ratio improved steadily, reaching its peak at 2.86 on September 30, 2020, reflecting a stronger ability to meet interest obligations. However, the ratio began to fluctuate from that point onwards, demonstrating some instability in the company's interest coverage.
The ratio decreased to 1.85 on September 30, 2021, and further declined to 1.21 on March 31, 2023, which may raise concerns about the company's ability to cover its interest payments adequately.
Moreover, in the most recent periods, the interest coverage ratio fell into negative territory, posting negative figures from December 31, 2023, to September 30, 2024. A negative interest coverage ratio indicates that the company's operating income is insufficient to cover its interest expenses, which could signal financial distress.
Overall, the trend of the interest coverage ratio for Telephone and Data Systems Inc has been somewhat erratic, highlighting the importance of monitoring the company's financial health and sustainability moving forward.
Peer comparison
Dec 31, 2024