T-Mobile US Inc (TMUS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.91 | 0.86 | 0.82 | 0.79 | 0.77 | 0.81 | 0.85 | 0.81 | 0.89 | 0.87 | 0.94 | 0.96 | 1.10 | 0.98 | 1.05 | 0.64 | 0.74 | 0.66 | 0.62 | 0.66 |
| Quick ratio | 0.68 | 0.64 | 0.65 | 0.58 | 0.57 | 0.62 | 0.62 | 0.58 | 0.66 | 0.65 | 0.75 | 0.72 | 0.84 | 0.70 | 0.76 | 0.36 | 0.48 | 0.46 | 0.41 | 0.43 |
| Cash ratio | 0.25 | 0.23 | 0.27 | 0.19 | 0.18 | 0.26 | 0.15 | 0.15 | 0.28 | 0.21 | 0.36 | 0.34 | 0.48 | 0.33 | 0.48 | 0.08 | 0.12 | 0.13 | 0.08 | 0.11 |
T-Mobile US Inc's liquidity ratios have shown a mix of performance over the past eight quarters.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has fluctuated within a range of 0.77 to 0.91. Although the ratio has generally been below 1, indicating potential liquidity concerns, it has shown some improvement recently.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. T-Mobile's quick ratio has been consistently lower than its current ratio, ranging from 0.69 to 0.83. This suggests that the company may have difficulties meeting its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity metric as it only considers cash and cash equivalents, has varied from 0.26 to 0.39. T-Mobile's cash ratio has generally been low, indicating a limited ability to meet its short-term obligations with cash on hand.
Overall, T-Mobile US Inc's liquidity position has shown some improvement in recent quarters, particularly in the current ratio. However, the company may still face challenges in quickly covering its short-term obligations, as indicated by the relatively low quick and cash ratios.
See also:
T-Mobile US Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of T-Mobile US Inc has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -4.59 days, indicating that T-Mobile took less time to convert its investments in inventory into cash compared to the previous quarter. This improvement suggests more efficient management of working capital.
In Q3 2023, the cash conversion cycle increased to 15.36 days, signaling a delay in cash inflows relative to cash outflows. However, in Q2 2023, the cycle improved to 1.85 days, indicating a quick turnover of inventory and efficient collection of receivables.
Q1 2023 saw a slightly negative cash conversion cycle of -0.84 days, indicating an efficient cash management process. The company continued this trend in Q4 2022, where the cycle was -9.83 days, showing strong liquidity management.
In Q3 and Q2 of 2022, T-Mobile's cash conversion cycle was 3.11 days and 4.74 days, respectively, demonstrating efficient working capital management. Q1 2022 showed a cycle of 2.26 days, which was also indicative of effective cash flow management.
Overall, T-Mobile US Inc's cash conversion cycle has been subject to fluctuations over the quarters, but the company has shown a general trend towards efficient management of working capital and cash flow over the analyzed period.