T-Mobile US Inc (TMUS)
Quick ratio
| 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 | US$ in thousands | 5,135,000 | 5,030,000 | 6,647,000 | 4,540,000 | 4,507,000 | 6,888,000 | 3,151,000 | 3,245,000 | 6,631,000 | 4,055,000 | 7,793,000 | 6,677,000 | 10,385,000 | 6,571,000 | 11,076,000 | 1,112,000 | 1,528,000 | 1,653,000 | 1,105,000 | 1,439,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 9,148,000 | 8,970,000 | 9,371,000 | 9,378,000 | 9,568,000 | 9,372,000 | 9,595,000 | 9,077,000 | 8,942,000 | 8,436,000 | 8,610,000 | 7,453,000 | 7,853,000 | 7,415,000 | 6,573,000 | 4,268,000 | 4,508,000 | 4,267,000 | 4,281,000 | 4,231,000 |
| Total current liabilities | US$ in thousands | 20,928,000 | 21,711,000 | 24,569,000 | 23,846,000 | 24,742,000 | 26,362,000 | 20,622,000 | 21,423,000 | 23,499,000 | 19,247,000 | 21,837,000 | 19,495,000 | 21,703,000 | 19,840,000 | 23,191,000 | 14,756,000 | 12,506,000 | 12,869,000 | 13,173,000 | 13,327,000 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A higher quick ratio indicates a stronger ability to meet short-term obligations.
Analyzing T-Mobile US Inc's quick ratio over the past eight quarters shows fluctuations but an overall trend towards improvement. In Q4 2023, the quick ratio stood at 0.83, which indicates that the company had $0.83 in liquid assets available to cover each dollar of current liabilities. This represents an increase from the previous quarter (Q3 2023) where the quick ratio was 0.78.
The improvement in the quick ratio suggests that T-Mobile US Inc has been managing its short-term liquidity more effectively. The company has been increasing its liquidity or reducing its short-term liabilities, or a combination of both, which is a positive sign for investors and creditors.
Although the quick ratio has shown some fluctuations over the quarters, the general trend indicates that T-Mobile US Inc is strengthening its ability to meet its short-term obligations. However, it's essential to continue monitoring the quick ratio along with other financial ratios to assess the company's overall financial health comprehensively.