Telephone and Data Systems, Inc.
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Telephone and Data Systems, Inc. Financial Snapshot
Operating Performance
Fast Facts
30 North LaSalle Street, Chicago, The company reported revenues of US$4,986.83
Headquarters Address
60602,United States of America million during 2010, with a CARC of 3.39% during
2006–2010. Its revenue declined at an annual rate of
Telephone + 1 312 6301900
0.66% over the previous fiscal year. In 2010, the
company recorded an operating margin of 5.82%, as
Fax + 1 312 6301908 against 8.03% in 2009.
Website www.teldta.com
Revenue and Margins
Ticker Symbol, Stock Exchange TDS, New York Stock Exchange
Number of Employees 12,400
Fiscal Year End December
Revenue (in US$ million) 4,986.83
SWOT Analysis
Strengths Weaknesses Return on Equity
Strong Customer Base Increased operational expenses The company recorded a return on equity (ROE) of
3.77% for 2010, as compared to its peers, USA
Reduction in average voice revenue Mobility, Inc. , Verizon Communications Inc. (Ticker:
Strong Presence of U.S. Cellular VZ) and Sprint Nextel Corporation (Ticker: S), which
per customer
recorded ROEs of 42.25%, 6.61% and -23.82%
respectively. The company reported an operating
margin of 5.82% in 2010.
Opportunities Threats
Return on Equity
Distribution of Smartphone Dependence on Roaming Agreements
Growing Mobile Broadband Market Industry consolidation
Increasing Demand for 3G-based
Pricing pressures
Services
Introduction of Belief Project
Strategic Acquisitions
Liquidity Position
The company reported a current ratio of 1.97 in 2010,
as compared to its peers, USA Mobility, Inc., Verizon
Communications Inc. and Sprint Nextel Corporation,
which recorded current ratios of 4.48, 0.73 and 1.25
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$771.02 million, against US$1.71 million current
debt. The company reported a debt to equity ratio of
0.39 in 2010 as compared to its peers, USA Mobility,
Inc., Verizon Communications Inc. and Sprint Nextel
Corporation, which recorded debt to equity ratios of
0.00, 1.37 and 1.39 respectively.
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Telephone and Data Systems, Inc. - SWOT Profile Page 1
Telephone and Data Systems, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview .................................................................................................................................................5
1.2 Business Description ...............................................................................................................................................5
1.3 Major Products and Services ...................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................7
2.2 Key Financial Performance Indicators ...................................................................................................................10
2.2.1 Revenue and Operating Profit .......................................................................................................................10
2.2.2 Asset, Liabilities and Capex ..........................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ............................................................................................................................12
2.2.4 Operational Efficiency ....................................................................................................................................13
2.2.5 Solvency ........................................................................................................................................................14
2.2.6 Valuation ........................................................................................................................................................15
2.3 Competitive Benchmarking ....................................................................................................................................16
2.3.1 Efficiency .......................................................................................................................................................16
2.3.2 Capital Expenditure .......................................................................................................................................17
2.3.3 Turnover – Inventory and Asset ....................................................................................................................18
3 SWOT Analysis ...................................................................................................................................... 19
3.1 SWOT Analysis - Overview ...................................................................................................................................19
3.2 Strengths ...............................................................................................................................................................19
3.3 Weaknesses ..........................................................................................................................................................19
3.4 Opportunities .........................................................................................................................................................20
3.5 Threats ...................................................................................................................................................................21
4 Company Statement .............................................................................................................................. 22
5 History .................................................................................................................................................... 25
6 Telephone and Data Systems, Inc. - Key Employees .......................................................................... 26
7 Key Employee Biographies................................................................................................................... 28
8 Locations and Subsidiaries .................................................................................................................. 29
8.1 Head Office ................