Telephone and Data SystemsTDS +3.25%64 Current Ratio is 3.43 as of Mar. 2026, which is 61% above its 10-year median of 2.13. GuruFocus rates TDS with a GF Score™ of 64/100 and a GF Value™ of $32.81 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 371 Telecommunication Services companies, Telephone and Data Systems ranks better than 91.37% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Telephone and Data Systems's current ratio for the quarter that ended in Mar. 2026 was 3.43.
Telephone and Data Systems has a current ratio of 3.43. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Telephone and Data Systems's Current Ratio or its related term are showing as below:
TDS'
s Current Ratio Range Over the Past 10 Years
Min: 1.28 Med: 2.13 Max: 3.43
Current: 3.43
During the past 13 years, Telephone and Data Systems's highest Current Ratio was 3.43. The lowest was 1.28. And the median was 2.13.
TDS's Current Ratio is ranked better than 91.37% of 371
companies
in the Telecommunication Services industry
Industry Median: 1.13
vs TDS: 3.43
Telephone and Data Systems (NYSE:TDS) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Telephone and Data Systems Current Ratio Related Terms
Telephone and Data Systems Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Telecom Services subindustry, Telephone and Data Systems's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telephone and Data Systems Current Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Current Ratio distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telephone and Data Systems (TDS) has a Current Ratio of 3.43 as of Mar. 2026. This is 61% above median its historical median of 2.13. Over the past decade, Telephone and Data Systems' Current Ratio has ranged from 1.28 to 3.43. According to the industry distribution chart, Telephone and Data Systems ranks #32 out of 371 companies in the Telecommunication Services industry, placing it in the top 8.6%.
Is Telephone and Data Systems' Current Ratio too high?
Telephone and Data Systems' current Current Ratio of 3.43 is 61% above median its 10-year median of 2.13. Over the past 10 years, this metric has ranged from a low of 1.28 to a high of 3.43. The Telecommunication Services industry median Current Ratio is 1.13. Telephone and Data Systems' value of 3.43 is 203.5% above this industry median. Based on the distribution chart, Telephone and Data Systems ranks #32 out of 371 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Telephone and Data Systems has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Current Ratio compare to AD and LBTYA?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #32 out of 371 companies for Current Ratio. This places Telephone and Data Systems in the top 9% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.13. Telephone and Data Systems' value of 3.43 is 203.5% above this benchmark. Historically, Telephone and Data Systems' own Current Ratio has ranged from 1.28 to 3.43 over the past decade. While the company's 10-year median is 2.13 vs. the industry median of 1.13, Telephone and Data Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Telecommunication Services company?
The median Current Ratio among Telecommunication Services companies is 1.13, based on 371 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telephone and Data Systems's current Current Ratio of 3.43 is 203.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Telecommunication Services industry, the median Current Ratio is 1.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current Current Ratio is 3.43, which is 61% above median its own 10-year median of 2.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telephone and Data Systems stock overvalued right now?
Based on GuruFocus' analysis, Telephone and Data Systems (TDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.81, compared to a current price of $38.45 — trading 17.2% above its estimated fair value. The current Current Ratio is 3.43, which is 61% above median its 10-year median of 2.13 and 203.5% above the Telecommunication Services industry median of 1.13. Telephone and Data Systems' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current Current Ratio is 3.43 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telephone and Data Systems (TDS) Overvalued in 2026?
Based on GuruFocus' analysis, Telephone and Data Systems stock appears to be overvalued.
The current stock price of $38.45 is trading 17.2% above its estimated GF Value™ of $32.81.
GuruFocus considers Telephone and Data Systems to be Modestly Overvalued.
Key valuation signals for TDS:
Current Ratio: 3.43 (61% above median its 10-year median of 2.13)
GF Value™: $32.81 vs. price of $38.45 (17.2% above fair value)
Industry Position: 203.5% above the Telecommunication Services median (#32 of 371)
No single metric tells the full story. See the TDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telephone and Data Systems Inc is a diversified telecommunications operator that provides communications services to customers through broadband, video, voice, and wireless connections. The company has two reportable segments: TDS Telecom and Array. The majority of its revenue is generated from the TDS Telecom segment, which generates revenue by providing broadband, video, voice, and wireless services. The Array segment generates its revenue mainly by leasing tower space on Array-owned towers to customers.
64GF Score
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