T-Mobile US Inc (TMUS)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	9.33	10.07	9.40	9.36	8.52	8.67	8.32	8.37	8.25	8.39	8.12	8.51	8.50	9.09	8.85	9.90	8.36	7.72	7.59	10.34
Payables turnover	5.53	7.78	7.21	7.10	4.32	5.28	4.51	4.06	3.60	3.69	3.97	3.46	3.55	4.02	4.27	3.93	2.98	5.22	3.69	—
Working capital turnover	—	50.38	—	—	—	—	—	—	—	—	—	—	—	—	—	—	30.10	—	44.13	—

T-Mobile US Inc's activity ratios provide insights into how efficiently the company manages its resources.

1. Inventory Turnover:
The inventory turnover ratio measures the number of times inventory is sold and replaced during a specific period. T-Mobile's inventory turnover has generally declined from around 12.43 in March 2020 to about 14.59 in December 2024. A higher ratio indicates that the company is managing its inventory efficiently.

2. Receivables Turnover:
The receivables turnover ratio indicates how quickly the company collects its accounts receivable. T-Mobile's receivables turnover ranged from 7.59 in June 2020 to 10.07 in September 2024. A higher turnover ratio suggests that the company is effectively managing its credit policies and collecting payments from customers promptly.

3. Payables Turnover:
The payables turnover ratio shows how quickly the company pays its suppliers. T-Mobile's payables turnover increased from 3.69 in June 2020 to 5.53 in December 2024. A higher ratio indicates that the company takes longer to pay its suppliers, potentially benefiting from better liquidity or credit terms.

4. Working Capital Turnover:
The working capital turnover ratio reflects how efficiently the company utilizes its working capital to generate revenue. T-Mobile's working capital turnover varied significantly over the years, with a notable surge to 50.38 in September 2024. A higher turnover ratio indicates that the company efficiently utilizes its working capital to generate sales.

In summary, T-Mobile US Inc has shown mixed performance in its activity ratios over the years, with fluctuations in inventory turnover, receivables turnover, payables turnover, and working capital turnover. Monitoring these ratios helps assess the company's operational efficiency and effectiveness in managing its resources.

Average number of days

		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
Days of inventory on hand (DOH)	days	25.02	27.52	20.30	23.38	25.45	25.31	20.32	24.36	26.51	32.58	32.77	42.45	40.66	38.98	37.82	45.05	55.71	34.94	30.93	29.35
Days of sales outstanding (DSO)	days	39.12	36.23	38.82	38.98	42.85	42.12	43.86	43.61	44.23	43.49	44.96	42.89	42.93	40.15	41.22	36.89	43.64	47.30	48.11	35.31
Number of days of payables	days	66.06	46.92	50.64	51.41	84.53	69.13	80.87	89.95	101.50	98.92	91.93	105.36	102.94	90.72	85.42	92.98	122.67	69.87	99.05	—

T-Mobile US Inc's Days of Inventory on Hand (DOH) ratio has shown a fluctuating trend over the past few years, ranging from a low of 20.30 days as of June 30, 2024, to a high of 55.71 days as of December 31, 2020. The decreasing trend in the DOH ratio from 2012 to 2014 might indicate effective inventory management and faster inventory turnover, potentially resulting in lower carrying costs and lower risk of obsolescence.

On the other hand, the Days of Sales Outstanding (DSO) ratio has also varied over the same period, with a low of 36.23 days as of September 30, 2024, and a high of 48.11 days as of June 30, 2020. A decreasing trend in the DSO ratio suggests that T-Mobile was improving its collection efficiency, possibly leading to better cash flow management and reduced credit risk.

In terms of the Number of Days of Payables ratio, T-Mobile US Inc has shown a consistent range. This suggests that the company has been maintaining stable payment terms with its suppliers, which could help in managing relationships and negotiating better terms in the future.

Overall, T-Mobile US Inc's activity ratios indicate that the company has been actively managing its inventory, receivables, and payables efficiently over the analyzed period, which could contribute to improved liquidity and profitability in the long run.

Long-term

	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
Fixed asset turnover	2.10	2.11	2.05	1.98	1.93	1.89	1.87	1.87	1.88	1.92	1.94	1.93	1.91	1.95	1.92	1.82	1.60	1.48	1.29	1.99
Total asset turnover	0.39	0.38	0.38	0.38	0.38	0.37	0.37	0.37	0.37	0.37	0.37	0.37	0.37	0.38	0.37	0.36	0.33	0.30	0.27	0.51

T-Mobile US Inc's fixed asset turnover ratio has shown a generally increasing trend from 2020 to 2024, indicating that the company is generating more revenue per dollar of fixed assets. This suggests improved efficiency in utilizing its long-term assets to generate sales.

On the other hand, the total asset turnover ratio has remained relatively stable over the same period, hovering around 0.37 to 0.39. This indicates that the company's ability to generate sales from all assets has not changed significantly.

Overall, the increasing trend in the fixed asset turnover ratio coupled with the stable total asset turnover ratio suggests that T-Mobile is effectively utilizing its fixed assets to generate revenue, which is a positive sign for the company's long-term operational efficiency and asset management.