T-Mobile US Inc (TMUS)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 5,135,000 4,507,000 6,631,000 10,385,000 1,528,000
Short-term investments US$ in thousands
Receivables US$ in thousands 9,148,000 9,568,000 8,942,000 7,853,000 4,508,000
Total current liabilities US$ in thousands 20,928,000 24,742,000 23,499,000 21,703,000 12,506,000
Quick ratio 0.68 0.57 0.66 0.84 0.48

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,135,000K + $—K + $9,148,000K) ÷ $20,928,000K
= 0.68

The quick ratio of T-Mobile US Inc has varied over the past five years, ranging from 0.67 to 0.98. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty in meeting its short-term liabilities using its current assets that can be quickly converted into cash.

Overall, T-Mobile's quick ratio has shown fluctuation, with a low of 0.67 in 2019, indicating a potential liquidity risk at that time. The ratio improved in 2020 to 0.98, suggesting better liquidity management. However, it decreased in subsequent years, with 0.69 in 2022 and 0.83 in 2023, possibly signaling a slight weakening in liquidity position.

It is essential for T-Mobile to monitor its quick ratio closely to ensure it maintains an optimal level of liquidity to meet its short-term obligations promptly. Further analysis of the company's cash management and working capital practices may be warranted to address any potential liquidity challenges.


See also:

T-Mobile US Inc Quick Ratio