T-Mobile US Inc (TMUS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 24,506,000 | 26,489,000 | 23,221,000 | 23,209,000 | 15,176,000 |
| Payables | US$ in thousands | 5,573,000 | 7,213,000 | 6,499,000 | 5,564,000 | 4,322,000 |
| Payables turnover | 4.40 | 3.67 | 3.57 | 4.17 | 3.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $24,506,000K ÷ $5,573,000K
= 4.40
The payables turnover ratio for T-Mobile US Inc has shown an increasing trend over the past five years, indicating that the company has been managing its accounts payable more efficiently.
In 2019, the payables turnover ratio was 4.29, which increased to 5.08 in 2020, further rising to 5.63 in 2021, then slightly decreasing to 5.02 in 2022, and eventually reaching 5.42 in 2023.
A higher payables turnover ratio generally indicates that the company is taking less time to pay its suppliers, which can be a positive sign of good financial health and effective cash flow management. T-Mobile US Inc's increasing payables turnover ratio suggests that the company has been improving its working capital management and optimizing its relationships with suppliers. Overall, the trend in payables turnover reflects positively on T-Mobile US Inc's operational efficiency.