T-Mobile US Inc (TMUS)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.91 | 1.08 | 0.84 | 0.94 | 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 |
| Quick ratio | 0.70 | 0.84 | 0.64 | 0.73 | 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 |
| Cash ratio | 0.27 | 0.47 | 0.28 | 0.33 | 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 |
T-Mobile US Inc's current ratio has fluctuated over the past few years, ranging from a low of 0.64 in March 2020 to a high of 1.10 in December 2020. However, the ratio has generally remained below 1, indicating potential liquidity challenges as the company may have difficulty meeting its short-term obligations with its current assets alone. The current ratio improved slightly in the latter part of 2024, reaching 1.08 by September 30, 2024.
In terms of the quick ratio, T-Mobile's ability to meet its short-term obligations with its most liquid assets has shown a similar trend. The quick ratio has varied between 0.36 and 0.84 during the period under review. While the quick ratio surpassed 1 in some quarters, it generally indicates the company's reliance on inventory or other less liquid current assets to cover its short-term liabilities. The quick ratio stood at 0.70 as of December 31, 2024.
Lastly, the cash ratio, which measures the company's ability to settle its current liabilities with its cash and cash equivalents, has also experienced fluctuations. T-Mobile's cash ratio has ranged from 0.08 to 0.48, with the trend showing some improvement towards the latter part of the period. The cash ratio was 0.27 as of December 31, 2024, suggesting the company holds a moderate amount of cash relative to its current liabilities.
Overall, T-Mobile US Inc's liquidity ratios indicate that the company may have faced challenges in the past in meeting its short-term obligations. However, there have been some improvements in liquidity position by the end of 2024, though continued monitoring of liquidity management will be crucial for the company.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -1.91 | 16.84 | 8.48 | 10.95 | -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 |
The cash conversion cycle of T-Mobile US Inc has fluctuated over the years, indicating changes in the efficiency of its working capital management. The company experienced a positive cash conversion cycle in the earlier periods, which suggests that it took longer to convert its investments in inventory and receivables into cash.
However, starting from June 2020, the company transitioned into negative cash conversion cycle territory, meaning it was able to generate cash from its operations more quickly. This trend continued with varying degrees of improvement until December 2024, where the cycle briefly turned positive again.
Overall, the decreasing trend in the cash conversion cycle indicates that T-Mobile US Inc has been efficient in managing its working capital and has improved its ability to convert its resources into cash. The negative values in recent periods suggest that the company has been effective in managing its cash flows, which may positively impact its liquidity and financial health.