T-Mobile US Inc (TMUS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 19,015,000 | 19,067,000 | 20,891,000 | 23,885,000 | 9,305,000 |
| Total current liabilities | US$ in thousands | 20,928,000 | 24,742,000 | 23,499,000 | 21,703,000 | 12,506,000 |
| Current ratio | 0.91 | 0.77 | 0.89 | 1.10 | 0.74 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $19,015,000K ÷ $20,928,000K
= 0.91
The current ratio of T-Mobile US Inc has shown fluctuating trends over the past five years. In 2023, the current ratio was 0.91, which indicates that the company had $0.91 in current assets for every $1 in current liabilities. This suggests that T-Mobile's liquidity position has improved compared to the previous year (0.77 in 2022). However, the current ratio remains below the ideal threshold of 1, implying that the company may have difficulty meeting its short-term obligations with its current assets alone.
Looking back, the current ratio was relatively stable in 2021 and 2020 at 0.89 and 1.10, respectively, which indicates a healthier liquidity position during those years. Conversely, in 2019, the current ratio was significantly lower at 0.74, indicating potential liquidity challenges for the company at that time.
Overall, T-Mobile US Inc's current ratio has exhibited variability over the past five years, with the company facing liquidity concerns in certain periods. It is essential for investors and stakeholders to monitor this metric closely to assess the company's ability to manage its short-term financial obligations effectively.