T-Mobile US Inc (TMUS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 77,477,000 | 78,416,000 | 75,841,000 | 64,173,000 | 42,982,000 |
| Receivables | US$ in thousands | 9,148,000 | 9,568,000 | 8,942,000 | 7,853,000 | 4,508,000 |
| Receivables turnover | 8.47 | 8.20 | 8.48 | 8.17 | 9.53 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $77,477,000K ÷ $9,148,000K
= 8.47
The receivables turnover ratio for T-Mobile US Inc has been relatively stable over the past five years, ranging from 8.32 to 9.98. This ratio indicates how efficiently the company is collecting its accounts receivable during a given period.
A higher receivables turnover ratio suggests that the company is collecting its outstanding receivables more quickly, which is a positive sign of effective credit management. On the other hand, a lower ratio may indicate potential issues with collecting payments promptly.
T-Mobile US Inc's average receivables turnover ratio over the five-year period is 8.89, indicating that, on average, the company collects its outstanding receivables approximately 8.89 times a year. This suggests that T-Mobile is managing its receivables efficiently and effectively over the years, with a consistent performance in collecting payments from customers.
It is important to note that analyzing the receivables turnover ratio in conjunction with other financial ratios and considering industry benchmarks can provide a more comprehensive understanding of T-Mobile's overall financial performance and credit management effectiveness.