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.


See also:

T-Mobile US Inc Inventory Turnover (Quarterly Data)