Microsoft Excel LibreOffice Calc

T-Mobile US Inc. (TMUS)


Analysis of Liquidity Ratios

Difficulty: Beginner

Liquidity ratios measure the company’s ability to meet its short-term obligations.


Liquidity Ratios (Summary)

T-Mobile US Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current ratio 0.81 0.77 1.58 1.56 1.59
Quick ratio 0.54 0.47 1.04 1.24 1.18
Cash ratio 0.12 0.11 0.61 0.80 0.61

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. T-Mobile US Inc.’s current ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. T-Mobile US Inc.’s quick ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. T-Mobile US Inc.’s cash ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Current Ratio

T-Mobile US Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Current assets 8,281  8,915  14,217  14,890  13,984 
Current liabilities 10,267  11,515  9,022  9,528  8,776 
Liquidity Ratio
Current ratio1 0.81 0.77 1.58 1.56 1.59
Benchmarks
Current Ratio, Industry
Telecommunications 0.84 0.94 0.88 0.79 1.02

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 8,281 ÷ 10,267 = 0.81

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. T-Mobile US Inc.’s current ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Quick Ratio

T-Mobile US Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cash and cash equivalents 1,203  1,219  5,500  4,582  5,315 
Short-term investments —  —  —  2,998  — 
Accounts receivable, net of allowances 1,769  1,915  1,896  1,788  1,865 
Equipment installment plan receivables, net 2,538  2,290  1,930  2,378  3,062 
Accounts receivable from affiliates 11  22  40  36  76 
Total quick assets 5,521  5,446  9,366  11,782  10,318 
 
Current liabilities 10,267  11,515  9,022  9,528  8,776 
Liquidity Ratio
Quick ratio1 0.54 0.47 1.04 1.24 1.18
Benchmarks
Quick Ratio, Industry
Telecommunications 0.58 0.78 0.58 0.56 0.79

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,521 ÷ 10,267 = 0.54

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.’s quick ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Cash Ratio

T-Mobile US Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cash and cash equivalents 1,203  1,219  5,500  4,582  5,315 
Short-term investments —  —  —  2,998  — 
Total cash assets 1,203  1,219  5,500  7,580  5,315 
 
Current liabilities 10,267  11,515  9,022  9,528  8,776 
Liquidity Ratio
Cash ratio1 0.12 0.11 0.61 0.80 0.61
Benchmarks
Cash Ratio, Industry
Telecommunications 0.08 0.43 0.16 0.19 0.34

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,203 ÷ 10,267 = 0.12

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.’s cash ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.