Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Selected Financial Data since 2013
- Net Profit Margin since 2013
- Current Ratio since 2013
- Price to Earnings (P/E) since 2013
- Analysis of Debt
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Liquidity Ratios (Summary)
T-Mobile US Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The liquidity position, as indicated by the presented ratios, demonstrates fluctuating performance over the five-year period. While generally remaining within a constrained range, observable trends suggest evolving short-term solvency. Overall, the company appears to maintain sufficient, though not expansive, liquid assets to cover its immediate liabilities.
- Current Ratio
- The current ratio experienced a decline from 0.89 in 2021 to 0.77 in 2022, indicating a weakening ability to cover current liabilities with current assets. A subsequent recovery to 0.91 in 2023 and stabilization at that level through 2024 is noted. Further improvement is observed in 2025, with the ratio reaching 1.00. This suggests a strengthening short-term financial position in the later years of the period.
- Quick Ratio
- The quick ratio, a more conservative measure of liquidity, followed a similar pattern to the current ratio. It decreased from 0.66 in 2021 to 0.57 in 2022, before increasing to 0.68 in 2023 and 0.70 in 2024. A slight decrease to 0.63 is observed in 2025. The quick ratio consistently remains below the current ratio, reflecting the impact of inventory on overall liquidity.
- Cash Ratio
- The cash ratio, the most conservative liquidity measure, exhibited a decline from 0.28 in 2021 to 0.18 in 2022. A modest recovery to 0.25 in 2023 and 0.27 in 2024 is apparent, followed by a slight decrease to 0.23 in 2025. This ratio consistently indicates a limited ability to meet short-term obligations solely with cash and cash equivalents. The relatively low and stable cash ratio suggests the company relies more heavily on accounts receivable and other current assets for immediate liquidity.
In summary, the company experienced a period of liquidity strain in 2022, followed by a gradual improvement through 2024. While the 2025 figures suggest a slight moderation in the improvement, the overall trend indicates a strengthening liquidity position towards the end of the analyzed period. The consistent difference between the current and quick ratios highlights the role of inventory in the company’s short-term asset structure.
Current Ratio
T-Mobile US Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Current Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| Current Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and ultimately reaching parity. A review of the underlying components, current assets and current liabilities, provides further insight into these movements.
- Current Ratio Trend
- The current ratio began at 0.89 in 2021, decreased to 0.77 in 2022, and then showed improvement, reaching 0.91 in both 2023 and 2024. By 2025, the current ratio reached 1.00, indicating a balance between current assets and current liabilities.
- Current Assets
- Current assets decreased from US$20,891 million in 2021 to US$19,067 million in 2022, and experienced a slight decrease to US$19,015 million in 2023. A further reduction to US$18,404 million was observed in 2024, before a substantial increase to US$24,461 million in 2025.
- Current Liabilities
- Current liabilities increased from US$23,499 million in 2021 to US$24,742 million in 2022. A significant decrease was then recorded, falling to US$20,928 million in 2023 and US$20,174 million in 2024. Current liabilities then rose again to US$24,500 million in 2025.
The initial decline in the current ratio from 2021 to 2022 was driven by a greater percentage increase in current liabilities compared to the decrease in current assets. The subsequent stabilization and improvement in the ratio from 2023 onwards were initially influenced by a larger decrease in current liabilities, and ultimately by a substantial increase in current assets in 2025, which offset the increase in current liabilities.
The achievement of a current ratio of 1.00 in 2025 suggests the entity possesses sufficient current assets to cover its current liabilities, potentially indicating improved short-term financial health. However, the volatility observed in the preceding years warrants continued monitoring.
Quick Ratio
T-Mobile US Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Accounts receivable, net of allowance for credit losses | ||||||
| Equipment installment plan receivables, net of allowance for credit losses and imputed discount | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Quick Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| Quick Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuations over the five-year period. Initially, a decrease was observed, followed by a period of improvement, and then a slight decline. The relationship between quick assets and current liabilities demonstrates the company’s ability to meet its short-term obligations with its most liquid assets.
- Quick Ratio Trend
- The quick ratio decreased from 0.66 in 2021 to 0.57 in 2022, indicating a weakening in the company’s ability to cover its current liabilities with highly liquid assets. A subsequent improvement occurred in 2023, with the ratio rising to 0.68. This positive trend continued into 2024, reaching 0.70, the highest value within the observed period. However, in 2025, the quick ratio experienced a slight decrease to 0.63.
- Quick Assets
- Total quick assets decreased from US$15,573 million in 2021 to US$14,075 million in 2022. A modest increase to US$14,283 million was noted in 2023, followed by a further decrease to US$14,064 million in 2024. The final year observed, 2025, showed an increase in quick assets to US$15,469 million.
- Current Liabilities
- Current liabilities increased from US$23,499 million in 2021 to US$24,742 million in 2022. A significant decrease was observed in 2023, with current liabilities falling to US$20,928 million. This downward trend continued into 2024, reaching US$20,174 million, the lowest value in the period. However, current liabilities increased again in 2025, reaching US$24,500 million.
The interplay between quick assets and current liabilities suggests that the quick ratio’s fluctuations are driven by changes in both components. The decrease in current liabilities in 2023 and 2024 contributed to the improvement in the quick ratio during those years, while the increase in current liabilities in 2025 partially offset the increase in quick assets, resulting in a slight decline in the ratio.
Cash Ratio
T-Mobile US Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Cash Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| Cash Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and then experiencing a slight decline. Total cash assets demonstrated an initial decrease followed by a recovery and subsequent modest growth, while current liabilities generally remained high, with a notable decrease in 2023 before increasing again.
- Cash Ratio Trend
- The cash ratio began at 0.28 in 2021, indicating that for every dollar of current liabilities, the entity held 28 cents in cash. A substantial decrease was observed in 2022, with the ratio falling to 0.18. The ratio then recovered to 0.25 in 2023 and 0.27 in 2024, suggesting improved short-term liquidity. However, a slight decrease to 0.23 was recorded in 2025.
- Total Cash Assets
- Total cash assets decreased from US$6,631 million in 2021 to US$4,507 million in 2022. A recovery was then seen, with cash assets rising to US$5,135 million in 2023 and further to US$5,409 million in 2024. Continued growth was observed in 2025, reaching US$5,598 million, although the rate of increase slowed.
- Current Liabilities
- Current liabilities remained relatively stable between 2021 and 2023, fluctuating between US$23,499 million and US$24,742 million. A significant decrease was noted in 2023, falling to US$20,928 million. However, current liabilities increased again in 2024 to US$20,174 million and further to US$24,500 million in 2025, returning to levels comparable to those observed in the earlier years of the period.
The interplay between cash assets and current liabilities suggests that while the entity experienced a period of reduced liquidity in 2022, it subsequently improved its ability to meet short-term obligations. The increase in current liabilities in 2025, coupled with a slight decrease in the cash ratio, warrants continued monitoring.