T-Mobile US Inc (TMUS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,409,000 | 5,135,000 | 4,507,000 | 6,631,000 | 10,385,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 20,174,000 | 20,928,000 | 24,742,000 | 23,499,000 | 21,703,000 |
| Cash ratio | 0.27 | 0.25 | 0.18 | 0.28 | 0.48 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,409,000K
+ $—K)
÷ $20,174,000K
= 0.27
The cash ratio of T-Mobile US Inc has shown a decreasing trend over the past five years. Starting at 0.48 in December 31, 2020, it declined to 0.28 by December 31, 2021, indicating a decrease in the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. This trend continued in the following years, with the cash ratio further dropping to 0.18 by December 31, 2022. However, there was a slight improvement in liquidity by December 31, 2023, with the cash ratio increasing to 0.25. By the end of December 31, 2024, the cash ratio stood at 0.27, still lower than the initial ratio in 2020. This fluctuation in the cash ratio suggests that T-Mobile US Inc may have experienced variations in its cash position and could potentially face challenges in meeting its immediate financial obligations with cash on hand during the period under review.