T-Mobile US Inc (TMUS)
Cash conversion cycle
| 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 | — |
| Cash conversion cycle | days | -1.91 | 16.84 | 8.48 | 10.95 | -16.22 | -1.71 | -16.70 | -21.98 | -30.76 | -22.85 | -14.20 | -20.02 | -19.35 | -11.60 | -6.37 | -11.04 | -23.32 | 12.36 | -20.01 | 64.67 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.02 + 39.12 – 66.06
= -1.91
The cash conversion cycle of T-Mobile US Inc has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024. The cycle measures the length of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Initially, on March 31, 2020, T-Mobile had a cash conversion cycle of 64.67 days, indicating that it took approximately 64.67 days to convert its investments into cash. However, by June 30, 2020, the cycle improved significantly to -20.01 days, which implies that T-Mobile was able to convert its investments into cash much faster than before.
The cycle continued to show negative numbers until March 31, 2024, with various fluctuations. Notably, on December 31, 2022, T-Mobile achieved a significant improvement with a cash conversion cycle of -30.76 days, indicating that it operated efficiently in managing its cash flows and investments.
Overall, the trend suggests that T-Mobile US Inc has been able to optimize its cash conversion cycle, showcasing effective management of its working capital and operational efficiency in converting investments into cash. This trend is favorable for the company as it indicates improved liquidity and cash flow management.