T-Mobile US Inc (TMUS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 24,204,000 | 24,506,000 | 26,489,000 | 23,221,000 | 23,209,000 |
| Inventory | US$ in thousands | 1,607,000 | 1,678,000 | 1,884,000 | 2,567,000 | 2,527,000 |
| Inventory turnover | 15.06 | 14.60 | 14.06 | 9.05 | 9.18 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $24,204,000K ÷ $1,607,000K
= 15.06
The inventory turnover ratio for T-Mobile US Inc has shown a consistent trend of improvement over the past five years, indicating the company's efficiency in managing its inventory.
Starting at 9.18 in December 2020, the ratio slightly decreased to 9.05 by December 2021 but then experienced a significant increase to 14.06 by December 2022. This uptrend continued with a further rise to 14.60 by December 2023 and reaching 15.06 by December 2024.
A higher inventory turnover ratio suggests that T-Mobile US Inc is selling its inventory more quickly, which could be attributed to effective inventory management strategies, demand forecasting accuracy, and efficient sales operations. This improvement may positively impact the company's cash flow and profitability by reducing carrying costs and potential obsolescence risks associated with excess inventory.