T-Mobile US Inc (TMUS)
Payables 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 |
| Payables | US$ in thousands | 4,242,000 | 5,573,000 | 7,213,000 | 6,499,000 | 5,564,000 |
| Payables turnover | 5.71 | 4.40 | 3.67 | 3.57 | 4.17 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $24,204,000K ÷ $4,242,000K
= 5.71
To analyze T-Mobile US Inc's payables turnover, we observe the trend over the years from 2020 to 2024. The payables turnover ratio is calculated by dividing the total purchases by the average accounts payable.
The payables turnover ratio for T-Mobile US Inc was 4.17 in 2020, which means the company paid off its accounts payable 4.17 times during the year. In 2021, the ratio decreased to 3.57, indicating a slower rate of paying off the accounts payable. However, in 2022, the ratio increased to 3.67, showing a slight improvement in the company's ability to manage its payables.
In 2023, the payables turnover ratio significantly improved to 4.40, indicating that the company became more efficient in paying off its suppliers. The highest ratio was observed in 2024 at 5.71, reflecting a substantial improvement in managing the accounts payable turnover.
Overall, the trend in T-Mobile US Inc's payables turnover ratio from 2020 to 2024 shows fluctuations but generally an improvement in the efficiency of paying off its suppliers. This indicates better management of payables and potentially stronger working capital management practices.