T-Mobile US Inc (TMUS)
Cash conversion cycle
| 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 | — | — | — |
| Cash conversion cycle | days | -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 | -45.71 | 55.48 | 61.28 | 60.78 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.45 + 42.85 – 84.53
= -16.22
The cash conversion cycle of T-Mobile US Inc has exhibited fluctuating trends over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -4.59 days, indicating that it was able to convert its cash invested in operations back into cash quickly. This was a significant improvement from the previous quarter, where the cycle was 15.36 days, showing a longer time taken to convert cash back into cash.
The company experienced a positive cash conversion cycle in Q2 2023, with a cycle of 1.85 days, suggesting efficient management of cash flow during that period. However, in Q1 2023, the cash conversion cycle was negative at -0.84 days, indicating that the company's payments to suppliers were exceeding the time it took to collect cash from customers.
Comparing to the same quarter of the previous year, Q4 2022 had a negative cash conversion cycle of -9.83 days, implying a more efficient cash management process. In Q3 2022, the cycle was 3.11 days, showing a moderate performance in cash conversion efficiency.
Overall, T-Mobile US Inc's cash conversion cycle has shown variability, with some quarters demonstrating efficient cash management while others indicate room for improvement in managing cash flow efficiency throughout its operations.