The business behind the dividend
| Measure | TDS | Median | Formula |
|---|---|---|---|
| Return on equity | -0.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | -1.7% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-93.36m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $199.36m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | -9.1% | 15.0% | Operating income ÷ revenue |
| Net margin | -0.6% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.17x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | -0.86x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 2.10x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.70x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
Not computed here: Cash conversion — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | -0.1% | -0.5% | -9.6% | 1.1% | 2.6% | 4.7% | 2.6% | 3.0% | 3.6% | 1.0% | 1.1% |
| Return on capital employed | -1.7% | -2.5% | -7.4% | 1.3% | 2.9% | 3.1% | 2.6% | 2.9% | -1.6% | 1.6% | 1.3% |
| Operating margin | -9.1% | -16.3% | -55.6% | 2.3% | 5.0% | 5.1% | 3.5% | 4.1% | -2.1% | 2.1% | 2.1% |
| Net margin | -0.6% | -2.4% | -40.7% | 1.2% | 3.0% | 4.4% | 2.4% | 2.7% | 3.0% | 0.8% | 1.2% |
| Debt to equity | 0.17x | 0.47x | 0.78x | 0.64x | 0.49x | 0.71x | 0.50x | 0.53x | 0.57x | 0.59x | 0.53x |
| Current ratio | 2.10x | 1.56x | 1.40x | 1.34x | 1.73x | 2.62x | 2.00x | 2.65x | 2.14x | 2.32x | 2.00x |
| Cash conversion | — | — | — | 18.63x | 7.07x | 6.78x | 8.40x | 7.53x | 5.07x | 18.19x | 7.53x |
How it compares in communications
Among the 25 communications companies here measured on free cash flow, Telephone & Data Systems pays out less than 6 of them. The median for that group is 28.4%, against this company’s 44.0%.
Closest on free cash flow
- Deluxe (DLX) 31.5%
- ATN International (ATNI) 35.7%
- AT&T (T) 42.1%
- ACCO Brands (ACCO) 54.9%
Same sector and same denominator, so the figures are comparable. All 31 in communications →