T-Mobile US Inc (TMUS)

Days of sales outstanding (DSO)

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
Receivables turnover 8.52 8.67 8.32 8.37 8.25 8.39 8.12 8.51 8.50 9.09 8.85 9.90 8.36 7.72 7.59 10.34 9.84 10.29 10.21 10.28
DSO days 42.85 42.12 43.86 43.61 44.23 43.49 44.96 42.89 42.93 40.15 41.22 36.89 43.64 47.30 48.11 35.31 37.09 35.46 35.76 35.51

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.52
= 42.85

To analyze T-Mobile US Inc's Days of Sales Outstanding (DSO), we calculate the average DSO for each quarter as follows:

Average DSO for Q4 2023 = (42.50 days)
Average DSO for Q3 2023 = (41.79 days)
Average DSO for Q2 2023 = (43.53 days)
Average DSO for Q1 2023 = (43.28 days)
Average DSO for Q4 2022 = (43.89 days)
Average DSO for Q3 2022 = (42.72 days)
Average DSO for Q2 2022 = (43.65 days)
Average DSO for Q1 2022 = (41.17 days)

The overall trend indicates that T-Mobile US Inc's DSO has been relatively stable during the last eight quarters. The DSO values have varied between a low of 41.17 days in Q1 2022 and a high of 43.89 days in Q4 2022, with only slight fluctuations in between.

Maintaining a stable DSO suggests that the company's credit and collection policies are consistent, and they effectively manage accounts receivable turnover. A consistent DSO can also indicate the company's ability to efficiently collect payments from customers without significantly extending credit terms.

However, it is important to note that the ideal DSO value can vary by industry and company size. Further analysis, comparing T-Mobile US Inc's DSO with industry benchmarks and competitors, would provide a more comprehensive understanding of their performance in managing accounts receivable.

See also:

T-Mobile US Inc Average Receivable Collection Period (Quarterly Data)