T-Mobile US Inc (TMUS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,135,000 | 4,507,000 | 6,631,000 | 10,385,000 | 1,528,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 20,928,000 | 24,742,000 | 23,499,000 | 21,703,000 | 12,506,000 |
| Cash ratio | 0.25 | 0.18 | 0.28 | 0.48 | 0.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,135,000K
+ $—K)
÷ $20,928,000K
= 0.25
The cash ratio of T-Mobile US Inc has fluctuated over the past five years, ranging from 0.31 to 0.62. A cash ratio of 0.39 as of December 31, 2023, indicates that for every dollar of current liabilities, the company has $0.39 in cash or cash equivalents available to cover those obligations. The decrease from the previous year suggests a lower level of liquidity compared to 2022. While the ratio has varied, it is worth noting that the company had a higher cash ratio in 2020 and 2021, indicating stronger liquidity positions in those years. Overall, a lower cash ratio may indicate a potential challenge in meeting short-term obligations with available cash resources.