Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
T-Mobile US Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The liquidity position, as indicated by the current, quick, and cash ratios, demonstrates fluctuations over the observed period. Generally, there is an increasing trend in all three ratios from 2022 through the first half of 2024, followed by some degree of reversion in the latter half of 2024 and into 2025.
- Current Ratio
- The current ratio began at 0.81 in March 2022 and generally trended downwards, reaching a low of 0.77 in December 2022. An upward trajectory commenced in 2023, peaking at 0.94 in March 2024. Subsequent quarters saw a decline to 0.89 in September 2025, though remaining above the initial value from March 2022. The most significant increase occurred between March and September 2024.
- Quick Ratio
- The quick ratio exhibited a similar pattern to the current ratio, starting at 0.58 in March 2022 and experiencing a slight decline to 0.57 by December 2022. Improvement was observed throughout 2023 and into the first half of 2024, reaching a high of 0.88 in March 2024. A subsequent decrease is noted, falling to 0.53 in September 2025. The quick ratio consistently remained below the current ratio throughout the period, indicating a reliance on inventory to meet current obligations.
- Cash Ratio
- The cash ratio demonstrated the most volatility of the three metrics. It began at 0.15 in March 2022, with a temporary peak at 0.26 in September 2022, before declining again. A general upward trend was evident from early 2023, culminating in a high of 0.51 in March 2024. The ratio then decreased substantially, reaching 0.14 in September 2025, representing a return to levels similar to those observed in the initial period. The cash ratio consistently remained the lowest of the three liquidity ratios.
The increases observed in the ratios during 2023 and early 2024 suggest improved short-term solvency. However, the declines in late 2024 and 2025 warrant further investigation to determine the underlying causes and potential implications for the company’s ability to meet its short-term obligations. The fluctuations in the cash ratio are particularly noteworthy, indicating potential shifts in cash management strategies or operating cycles.
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Current Ratio
T-Mobile US Inc., current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 24,461) | 21,703) | 26,772) | 27,441) | 18,404) | 22,531) | 19,297) | 19,295) | 19,015) | 18,669) | 20,237) | 18,876) | 19,067) | 21,427) | 17,476) | 17,455) | |||||
| Current liabilities | 24,500) | 24,301) | 22,102) | 23,629) | 20,174) | 20,955) | 23,038) | 20,563) | 20,928) | 21,711) | 24,569) | 23,846) | 24,742) | 26,362) | 20,622) | 21,423) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.00 | 0.89 | 1.21 | 1.16 | 0.91 | 1.08 | 0.84 | 0.94 | 0.91 | 0.86 | 0.82 | 0.79 | 0.77 | 0.81 | 0.85 | 0.81 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | 0.91 | 1.01 | 0.81 | 0.70 | 0.66 | 0.73 | 0.70 | 0.68 | 0.71 | 0.69 | 0.68 | 0.51 | 0.59 | 0.62 | 0.70 | 0.93 | |||||
| Verizon Communications Inc. | 0.91 | 0.74 | 0.64 | 0.61 | 0.63 | 0.66 | 0.63 | 0.71 | 0.69 | 0.68 | 0.73 | 0.75 | 0.75 | 0.75 | 0.76 | 0.76 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,461 ÷ 24,500 = 1.00
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio remained relatively stable, hovering around 0.81 to 0.85 during the first half of 2022. A slight decline was observed towards the end of 2022, reaching 0.77. The first half of 2023 showed a modest recovery, with the ratio increasing to 0.82. A more pronounced upward trend emerged in the latter half of 2023, peaking at 0.91 in December. This positive momentum continued into the first half of 2024, reaching 0.94, before experiencing a decrease to 0.84 by June 30, 2024. A significant increase occurred in September 2024, with the ratio reaching 1.08, followed by a slight decrease to 0.91 in December 2024. The ratio continued to climb in the first half of 2025, peaking at 1.21 in June, before decreasing to 0.89 in September and recovering to 1.00 by the end of 2025.
- Overall Trend
- The current ratio demonstrated a general tendency to improve over the analyzed timeframe, particularly from late 2023 through mid-2025. While fluctuations were present, the ratio generally moved from below 0.80 in early periods to above 1.00 in later periods. This suggests a strengthening short-term liquidity position.
- Short-Term Fluctuations
- Several instances of short-term volatility were observed. The decline from 0.85 in June 2022 to 0.77 in December 2022, and the dip from 0.94 in March 2024 to 0.84 in June 2024, indicate periods where current liabilities outpaced current assets. However, these were generally followed by recoveries.
- Peak Performance
- The highest recorded current ratio was 1.21 in June 2025. This indicates the strongest short-term liquidity position within the observed period, suggesting the entity had a substantial margin of current assets to cover its current liabilities at that time.
- Lowest Performance
- The lowest current ratio was 0.77 in December 2022. This suggests the entity’s ability to meet its short-term obligations with its current assets was most constrained during this period.
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Quick Ratio
T-Mobile US Inc., quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 5,598) | 3,310) | 10,259) | 12,003) | 5,409) | 9,754) | 6,417) | 6,708) | 5,135) | 5,030) | 6,647) | 4,540) | 4,507) | 6,888) | 3,151) | 3,245) | |||||
| Accounts receivable, net of allowance for credit losses | 4,874) | 5,084) | 4,598) | 4,392) | 4,276) | 4,286) | 4,563) | 4,253) | 4,692) | 4,500) | 4,592) | 4,366) | 4,445) | 4,324) | 4,466) | 4,016) | |||||
| Equipment installment plan receivables, net of allowance for credit losses and imputed discount | 4,997) | 4,599) | 4,226) | 4,294) | 4,379) | 3,595) | 3,776) | 4,059) | 4,456) | 4,470) | 4,779) | 5,012) | 5,123) | 5,048) | 5,129) | 5,061) | |||||
| Total quick assets | 15,469) | 12,993) | 19,083) | 20,689) | 14,064) | 17,635) | 14,756) | 15,020) | 14,283) | 14,000) | 16,018) | 13,918) | 14,075) | 16,260) | 12,746) | 12,322) | |||||
| Current liabilities | 24,500) | 24,301) | 22,102) | 23,629) | 20,174) | 20,955) | 23,038) | 20,563) | 20,928) | 21,711) | 24,569) | 23,846) | 24,742) | 26,362) | 20,622) | 21,423) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.63 | 0.53 | 0.86 | 0.88 | 0.70 | 0.84 | 0.64 | 0.73 | 0.68 | 0.64 | 0.65 | 0.58 | 0.57 | 0.62 | 0.62 | 0.58 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | 0.50 | 0.54 | 0.40 | 0.34 | 0.28 | 0.29 | 0.30 | 0.29 | 0.33 | 0.32 | 0.35 | 0.22 | 0.27 | 0.26 | 0.31 | 0.68 | |||||
| Verizon Communications Inc. | 0.74 | 0.56 | 0.49 | 0.46 | 0.47 | 0.50 | 0.46 | 0.52 | 0.51 | 0.50 | 0.54 | 0.53 | 0.54 | 0.48 | 0.52 | 0.54 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 15,469 ÷ 24,500 = 0.63
2 Click competitor name to see calculations.
The quick ratio exhibits fluctuations over the observed period, generally indicating a strengthening liquidity position followed by a recent decline. Initial values demonstrate a moderate ability to meet short-term obligations with highly liquid assets. Subsequent quarters reveal improvements, peaking in late 2024, before experiencing a decrease in the most recent reporting periods.
- Overall Trend
- From March 2022 through December 2024, the quick ratio generally increased. Starting at 0.58, it rose to a high of 0.88 in March 2025. However, the ratio then decreased to 0.53 in September 2025 and recovered slightly to 0.63 by December 2025. This suggests a period of improving short-term solvency followed by a recent weakening.
- Short-Term Fluctuations (2022-2023)
- The quick ratio showed moderate variability between March 2022 and June 2023, oscillating between 0.58 and 0.65. This period suggests relatively stable, though limited, short-term liquidity. A slight increase is observed from June 2022 (0.62) to June 2023 (0.65), indicating a modest improvement in the company’s ability to cover immediate liabilities with quick assets.
- Significant Improvement (2023-2025)
- A notable increase in the quick ratio is evident from September 2023 (0.64) through March 2025 (0.88). This improvement suggests a strategic enhancement in liquidity management, potentially through increased liquid asset holdings or a reduction in current liabilities. The peak of 0.88 indicates a strong capacity to meet short-term obligations.
- Recent Decline (2025)
- The quick ratio experienced a substantial decrease from March 2025 (0.88) to September 2025 (0.53). This decline warrants further investigation, as it suggests a potential deterioration in short-term liquidity. A partial recovery to 0.63 in December 2025 is observed, but the ratio remains below the peak levels achieved earlier in the year.
The observed trends suggest that while the company generally maintained a reasonable quick ratio, recent developments indicate a potential need to reassess liquidity management strategies. The decline in the latter part of the period requires attention to ensure continued short-term financial health.
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Cash Ratio
T-Mobile US Inc., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 5,598) | 3,310) | 10,259) | 12,003) | 5,409) | 9,754) | 6,417) | 6,708) | 5,135) | 5,030) | 6,647) | 4,540) | 4,507) | 6,888) | 3,151) | 3,245) | |||||
| Total cash assets | 5,598) | 3,310) | 10,259) | 12,003) | 5,409) | 9,754) | 6,417) | 6,708) | 5,135) | 5,030) | 6,647) | 4,540) | 4,507) | 6,888) | 3,151) | 3,245) | |||||
| Current liabilities | 24,500) | 24,301) | 22,102) | 23,629) | 20,174) | 20,955) | 23,038) | 20,563) | 20,928) | 21,711) | 24,569) | 23,846) | 24,742) | 26,362) | 20,622) | 21,423) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.23 | 0.14 | 0.46 | 0.51 | 0.27 | 0.47 | 0.28 | 0.33 | 0.25 | 0.23 | 0.27 | 0.19 | 0.18 | 0.26 | 0.15 | 0.15 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | 0.34 | 0.38 | 0.22 | 0.14 | 0.07 | 0.06 | 0.07 | 0.08 | 0.13 | 0.15 | 0.18 | 0.05 | 0.07 | 0.05 | 0.08 | 0.47 | |||||
| Verizon Communications Inc. | 0.31 | 0.13 | 0.06 | 0.04 | 0.06 | 0.08 | 0.04 | 0.04 | 0.04 | 0.08 | 0.09 | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,598 ÷ 24,500 = 0.23
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the observed period, generally indicating a variable capacity to meet short-term obligations with solely cash and cash equivalents. An initial period of relative stability is followed by periods of both improvement and decline.
- Initial Stability (Mar 31, 2022 - Jun 30, 2022)
- The cash ratio remained consistent at 0.15 for the first two quarters. This suggests a stable, albeit relatively low, level of immediate liquidity during this timeframe.
- Significant Improvement (Sep 30, 2022)
- A notable increase to 0.26 is observed in the third quarter of 2022. This improvement is attributable to a substantial rise in total cash assets, while current liabilities also increased, but to a lesser extent. This indicates a strengthened short-term liquidity position.
- Subsequent Fluctuations (Dec 31, 2022 - Dec 31, 2023)
- The cash ratio experienced a decrease to 0.18 in the final quarter of 2022, followed by a rise to 0.27 and 0.23 in the first two quarters of 2023. The ratio then increased to 0.25 by the end of 2023. These fluctuations suggest a dynamic relationship between cash holdings and short-term liabilities.
- Peak and Subsequent Decline (Mar 31, 2024 - Sep 30, 2025)
- The cash ratio reached its highest point of 0.47 in the third quarter of 2024, driven by a significant increase in total cash assets. However, a substantial decline to 0.14 occurred by the third quarter of 2025, indicating a considerable weakening in the ability to cover current liabilities with available cash. The ratio partially recovered to 0.23 by the end of 2025, but remained below the peak observed earlier in the year.
- Overall Trend
- While the cash ratio demonstrated periods of strength, particularly in the third quarter of 2024, the overall trend suggests increased volatility. The significant decrease in the ratio during 2025 warrants further investigation to understand the underlying factors contributing to the reduced liquidity.
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