Telephone and Data Systems Inc (TDS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Telephone And Data Systems, Inc. reflect the company's ability to meet its long-term financial obligations. Looking at the trend over the past eight quarters, we can see some fluctuations in the ratios.
The debt-to-assets ratio, indicating the proportion of assets financed by debt, has been relatively stable around the range of 0.25 to 0.29, with a slight increase in the most recent quarter. This suggests that the company has been managing its debt levels in relation to its total assets.
The debt-to-capital ratio, measuring the proportion of capital that comes from debt, has also shown a gradual increase over the quarters, reaching 0.44 in the latest quarter. This indicates a higher reliance on debt in funding the company's operations.
The debt-to-equity ratio, showing the amount of leverage being used by the company, has seen fluctuations but generally shows an increasing trend, reaching 0.79 in the latest quarter. This suggests that the company's creditors have claims against a higher portion of the equity in the business.
The financial leverage ratio, which indicates the extent to which the company is using debt to finance its operations, has also shown an increasing trend, reaching 2.68 in the latest quarter. This demonstrates that the company is using more debt in its capital structure.
Overall, the solvency ratios of Telephone And Data Systems, Inc. indicate that the company has been gradually increasing its reliance on debt in its capital structure over the past eight quarters, which may pose some risks in terms of meeting its long-term financial obligations. Investors and stakeholders should closely monitor these ratios for any further developments in the company's solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.02 | 1.12 | 0.95 | 1.19 | 1.66 | 2.10 | 2.47 | 1.93 | 1.82 | 1.75 | 1.89 | 2.44 | 2.47 | 2.55 | 2.23 | 2.04 | 2.13 | 2.11 | 2.20 | 2.23 |
Interest coverage is a financial ratio that measures a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided for Telephone And Data Systems, Inc., the interest coverage ratio has shown a declining trend over the past quarters. In Q4 2022, the interest coverage ratio was the highest at 2.29, indicating a strong ability to cover interest expenses. However, the ratio has gradually decreased to 1.30 in Q4 2023, which may raise concerns about the company's ability to cover its interest payments with its current level of earnings.
A declining interest coverage ratio could be a signal of increased financial risk as it suggests that the company's earnings may not be sufficient to cover its interest expenses. Investors and creditors may view a decreasing trend in interest coverage as a red flag, signaling potential financial distress or liquidity issues for the company.
It is important for stakeholders to closely monitor the company's interest coverage ratio in relation to industry benchmarks and the company's historical performance to assess its financial health and ability to meet its debt obligations.