T-Mobile US Inc (TMUS)
Inventory turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost of revenue (ttm) | US$ in thousands | 23,439,000 | 23,729,000 | 23,715,000 | 23,748,000 | 24,065,000 | 24,303,000 | 24,665,000 | 26,088,000 | 25,939,000 | 25,171,000 | 24,982,000 | 23,345,000 | 23,044,000 | 16,499,000 | 16,473,000 | 17,896,000 | 16,555,000 | 20,174,000 | 18,278,000 | 15,232,000 |
Inventory | US$ in thousands | 1,607,000 | 1,789,000 | 1,319,000 | 1,521,000 | 1,678,000 | 1,685,000 | 1,373,000 | 1,741,000 | 1,884,000 | 2,247,000 | 2,243,000 | 2,715,000 | 2,567,000 | 1,762,000 | 1,707,000 | 2,209,000 | 2,527,000 | 1,931,000 | 1,549,000 | 1,225,000 |
Inventory turnover | 14.59 | 13.26 | 17.98 | 15.61 | 14.34 | 14.42 | 17.96 | 14.98 | 13.77 | 11.20 | 11.14 | 8.60 | 8.98 | 9.36 | 9.65 | 8.10 | 6.55 | 10.45 | 11.80 | 12.43 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $23,439,000K ÷ $1,607,000K
= 14.59
The inventory turnover ratio for T-Mobile US Inc provides a measure of how efficiently the company manages its inventory. Looking at the data provided, we observe that the ratio fluctuates over the periods under consideration.
From March 31, 2020, to December 31, 2020, the inventory turnover decreased from 12.43 to 6.55, indicating a decrease in the rate at which the company is selling its inventory. This could imply potential issues such as overstocking or slow-moving inventory during this period.
However, from March 31, 2021, the inventory turnover started to show signs of improvement, gradually increasing to 17.98 by June 30, 2024. This indicates that T-Mobile US Inc was more effective in managing its inventory during this period, possibly reducing excess inventory and selling products more quickly.
Overall, a higher inventory turnover ratio suggests that T-Mobile US Inc is efficiently managing its inventory by selling products quickly, which is a positive indicator of operational efficiency and effective liquidity management. It is important for the company to continue monitoring and optimizing its inventory turnover ratio to maintain a healthy balance between inventory levels and sales volume.