Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
T-Mobile US Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.89 | 1.10 | 0.74 | 0.81 | 0.77 | |
| Quick ratio | 0.66 | 0.84 | 0.48 | 0.54 | 0.47 | |
| Cash ratio | 0.28 | 0.48 | 0.12 | 0.12 | 0.11 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | T-Mobile US Inc. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | T-Mobile US Inc. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | T-Mobile US Inc. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Current Ratio
T-Mobile US Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 20,891 | 23,885 | 9,305 | 8,281 | 8,915 | |
| Current liabilities | 23,499 | 21,703 | 12,506 | 10,267 | 11,515 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.89 | 1.10 | 0.74 | 0.81 | 0.77 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AT&T Inc. | 0.70 | 0.82 | 0.79 | 0.80 | 0.97 | |
| Verizon Communications Inc. | 0.78 | 1.38 | 0.84 | 0.91 | 0.91 | |
| Current Ratio, Sector | ||||||
| Telecommunication Services | 0.75 | 1.05 | 0.80 | 0.84 | 0.94 | |
| Current Ratio, Industry | ||||||
| Communication Services | 1.39 | 1.71 | 1.47 | 1.54 | 1.59 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 20,891 ÷ 23,499 = 0.89
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | T-Mobile US Inc. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Quick Ratio
T-Mobile US Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 6,631 | 10,385 | 1,528 | 1,203 | 1,219 | |
| Accounts receivable, net of allowance for credit losses | 4,167 | 4,254 | 1,888 | 1,769 | 1,915 | |
| Equipment installment plan receivables, net of allowance for credit losses and imputed discount | 4,748 | 3,577 | 2,600 | 2,538 | 2,290 | |
| Accounts receivable from affiliates | 27 | 22 | 20 | 11 | 22 | |
| Total quick assets | 15,573 | 18,238 | 6,036 | 5,521 | 5,446 | |
| Current liabilities | 23,499 | 21,703 | 12,506 | 10,267 | 11,515 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.66 | 0.84 | 0.48 | 0.54 | 0.47 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AT&T Inc. | 0.45 | 0.47 | 0.50 | 0.49 | 0.82 | |
| Verizon Communications Inc. | 0.57 | 1.16 | 0.62 | 0.73 | 0.77 | |
| Quick Ratio, Sector | ||||||
| Telecommunication Services | 0.52 | 0.76 | 0.54 | 0.58 | 0.78 | |
| Quick Ratio, Industry | ||||||
| Communication Services | 1.20 | 1.51 | 1.25 | 1.30 | 1.42 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 15,573 ÷ 23,499 = 0.66
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | T-Mobile US Inc. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Cash Ratio
T-Mobile US Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 6,631 | 10,385 | 1,528 | 1,203 | 1,219 | |
| Total cash assets | 6,631 | 10,385 | 1,528 | 1,203 | 1,219 | |
| Current liabilities | 23,499 | 21,703 | 12,506 | 10,267 | 11,515 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.28 | 0.48 | 0.12 | 0.12 | 0.11 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AT&T Inc. | 0.25 | 0.15 | 0.18 | 0.08 | 0.62 | |
| Verizon Communications Inc. | 0.06 | 0.56 | 0.06 | 0.07 | 0.06 | |
| Cash Ratio, Sector | ||||||
| Telecommunication Services | 0.20 | 0.34 | 0.13 | 0.08 | 0.43 | |
| Cash Ratio, Industry | ||||||
| Communication Services | 0.79 | 1.06 | 0.81 | 0.81 | 1.00 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,631 ÷ 23,499 = 0.28
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | T-Mobile US Inc. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |