T-Mobile US Inc (TMUS)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	15.35	18.23	14.30	14.45
Receivables turnover	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	9.84	10.29	10.21	10.28
Payables turnover	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	—	3.42	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	30.10	—	44.13	—	—	—	—	—

T-Mobile US Inc's activity ratios for inventory turnover, receivables turnover, and payables turnover indicate the following:

1. Inventory Turnover:
- T-Mobile's inventory turnover has been relatively stable over the past eight quarters, ranging from 16.91 to 23.32.
- This indicates that T-Mobile is efficiently managing its inventory by converting it into sales multiple times during the year.
- A higher turnover ratio signifies that T-Mobile is effectively selling its inventory and not overstocking.

2. Receivables Turnover:
- The receivables turnover ratio has shown some fluctuation but has generally remained in the range of 8.32 to 8.87.
- This indicates that T-Mobile is collecting its accounts receivable efficiently, with a higher turnover ratio being favorable.
- The consistency in this ratio suggests that T-Mobile's credit policies and collection practices are effective.

3. Payables Turnover:
- T-Mobile's payables turnover ratio has shown variability over the quarters, ranging from 5.02 to 7.83.
- A higher payables turnover ratio indicates that T-Mobile is paying its suppliers more frequently, which can reflect favorable credit terms negotiated with suppliers.
- However, the fluctuation suggests possible changes in T-Mobile's payment policies or supplier relationships.

It is important to note that the working capital turnover data is missing in the provided table, which limits the complete assessment of T-Mobile's efficiency in generating sales revenue relative to its working capital. Overall, the analyzed activity ratios demonstrate T-Mobile's effectiveness in managing its inventory, receivables, and payables to support its operational performance and liquidity.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	23.77	20.02	25.52	25.26
Days of sales outstanding (DSO)	days	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	37.09	35.46	35.76	35.51
Number of days of payables	days	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	—	106.58	—	—	—

The activity ratios of T-Mobile US Inc provide insights into the efficiency of the company's operations and management of its working capital.

1. Days of Inventory on Hand (DOH):
- T-Mobile's DOH has fluctuated over the quarters, showing a decreasing trend from Q2 2023 to Q3 2023 before increasing again in Q4 2023.
- The company had an average of around 19 days of inventory on hand during the last quarter, indicating that it takes approximately 19 days to sell its inventory.
- A lower DOH is generally favorable as it suggests that the company is efficiently managing its inventory levels and selling products quickly.

2. Days of Sales Outstanding (DSO):
- T-Mobile's DSO has also varied across the quarters, with a peak in Q4 2022 and a slight increase in Q1 2023 before declining in Q2 and Q3 2023.
- The company had an average of around 43 days of sales outstanding during the last quarter, indicating that it takes approximately 43 days to collect payments from customers.
- A lower DSO implies that the company is efficient in collecting receivables and converting credit sales into cash quickly.

3. Number of Days of Payables:
- T-Mobile's days of payables have shown fluctuation with a significant decrease in Q3 2023 compared to Q2 2023 and an increase in Q4 2023.
- The company had an average of around 58 days of payables during the last quarter, indicating that it takes approximately 58 days to pay its suppliers.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, potentially improving its cash flow position in the short term.

Overall, T-Mobile's activity ratios reflect some variability in the management of inventory, receivables, and payables over the quarters. It is important for the company to strive for efficiency in these areas to optimize working capital management and enhance overall financial performance.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	2.02	1.99	2.00	2.03
Total asset turnover	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	0.51	0.51	0.52	0.52

T-Mobile US Inc's long-term activity ratios, namely fixed asset turnover and total asset turnover, provide insights into the company's effectiveness in utilizing its assets to generate revenue.

The fixed asset turnover ratio measures the company's ability to generate sales using its fixed assets. T-Mobile US Inc's fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging between 1.88 and 2.01. This indicates that the company has been able to efficiently generate revenue from its investment in fixed assets, such as property, plant, and equipment.

The total asset turnover ratio, on the other hand, represents the company's overall efficiency in generating sales from all its assets, including both fixed and current assets. T-Mobile US Inc's total asset turnover ratio has remained constant at 0.38 for each quarter in the given timeframe. This suggests that the company has consistently managed to generate sales revenue relative to its total assets.

In conclusion, T-Mobile US Inc's long-term activity ratios demonstrate a consistent performance in utilizing its assets to generate revenue, with both fixed asset turnover and total asset turnover ratios showing stable trends over the analyzed quarters. This indicates efficient asset management and productive use of resources to drive the company's financial performance.