T-Mobile US Inc (TMUS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 18,404,000 | 19,015,000 | 19,067,000 | 20,891,000 | 23,885,000 |
| Total current liabilities | US$ in thousands | 20,174,000 | 20,928,000 | 24,742,000 | 23,499,000 | 21,703,000 |
| Current ratio | 0.91 | 0.91 | 0.77 | 0.89 | 1.10 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $18,404,000K ÷ $20,174,000K
= 0.91
The current ratio of T-Mobile US Inc has exhibited a declining trend over the past five years. As of December 31, 2020, the current ratio was 1.10, indicating that the company had more current assets than current liabilities. However, this ratio decreased to 0.89 by December 31, 2021, and further to 0.77 by December 31, 2022, reflecting a potential strain on the company's short-term liquidity position.
There was a slight improvement in the current ratio to 0.91 by both December 31, 2023, and December 31, 2024. Although the ratio remains below 1 in the later years, suggesting that the company may have difficulty meeting its short-term obligations. It is important for stakeholders to monitor this ratio closely as a ratio below 1 may indicate liquidity concerns and potential difficulties in paying off short-term debts.