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-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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The analysis of the liquidity ratios over the observed quarterly periods reveals several noteworthy trends and fluctuations. The current ratio, a measure of the company's ability to meet short-term obligations with current assets, exhibits an overall pattern of variability. Starting at 0.96 in early 2021, it declines to a low of 0.77 by the end of 2022, indicating tighter liquidity conditions. Subsequently, the ratio recovers somewhat, peaking at 1.21 in mid-2025 before dipping again to 0.89. This suggests periods of both constrained and improved current asset coverage relative to current liabilities.
The quick ratio, which excludes inventories to focus on more liquid assets, follows a similar but somewhat more volatile pattern. Initial values around 0.72 to 0.75 give way to a decline reaching a trough near 0.57 to 0.58 towards the end of 2022 and early 2023. A recovery phase ensues with a peak at 0.88 by late 2025, though it declines sharply to 0.53 by the final quarter. This indicates variations in the availability of liquid assets beyond inventories, impacting short-term financial resilience.
The cash ratio, representing the most conservative liquidity measure by considering only cash and cash equivalents, shows greater amplitude in its fluctuations. Starting at 0.34 in early 2021, it reaches a low of 0.15 in mid-2022, reflecting diminished immediate liquidity. Following this, a general upward trend emerges, with the ratio climbing to 0.51 by mid-2025 before again declining to 0.14 at the end of the period. The cash ratio’s volatility highlights shifts in cash management and possibly the timing of cash inflows and outflows.
Collectively, these liquidity ratios indicate that the company has experienced periods of constrained liquidity, particularly around 2022 and early 2023, followed by phases of improved liquidity into 2025. However, the repeated declines towards the end of several periods suggest ongoing challenges in maintaining stable short-term liquidity buffers. The divergence observed between the ratios towards the end of the timeline, especially the sharp drop in the quick and cash ratios, may warrant closer examination to understand underlying cash flow and working capital management dynamics.
Current Ratio
T-Mobile US Inc., current ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current assets | 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) | 20,891) | 16,772) | 20,570) | 18,779) | ||||||
| Current liabilities | 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) | 23,499) | 19,247) | 21,837) | 19,495) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | 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 | 0.89 | 0.87 | 0.94 | 0.96 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 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 | 0.70 | 0.70 | 0.77 | 0.82 | ||||||
| Verizon Communications Inc. | 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 | 0.78 | 0.97 | 0.89 | 1.02 | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 21,703 ÷ 24,301 = 0.89
2 Click competitor name to see calculations.
The financial data reveals fluctuations in the current assets and current liabilities over the observed periods, which in turn impact the current ratio—a key indicator of short-term liquidity and financial health.
- Current Assets
- Current assets exhibit variability throughout the periods with values ranging roughly between US$16,772 million and US$27,441 million. Initial data points show moderate levels around US$18,000 to US$20,000 million, followed by occasional peaks, notably reaching US$27,441 million in the period ending June 30, 2025. However, intermittent declines occur, as seen around March 31, 2025 and December 31, 2024, indicating some volatility in asset levels.
- Current Liabilities
- Current liabilities generally exceed current assets across most periods, ranging consistently from approximately US$19,247 million to US$26,362 million. The liability figures show some upward trends, particularly towards the middle periods, peaking near US$26,362 million in September 2022. Toward the latest periods, liabilities remain elevated, but with moderate fluctuations, suggesting ongoing operational or financing obligations.
- Current Ratio
- The current ratio remains below the optimal threshold of 1.0 during many periods, indicating that current liabilities often surpass current assets, which could imply liquidity constraints. Ratios mostly fluctuate between 0.77 and 0.96 in the earlier and middle quarters, with pronounced lows around December 31, 2022 (0.77). Noteworthy improvements appear near the end of the dataset, where the current ratio increases to above 1.0 in some periods, such as 1.08 on March 31, 2025, and even reaching 1.21 on June 30, 2025, signifying transient strengthening of the company's liquidity position. However, the ratio dips again to 0.89 by September 30, 2025, indicating recurring volatility in liquidity metrics.
In summary, the company demonstrates variable liquidity conditions over the reviewed time frame. The recurring trend of current liabilities exceeding current assets suggests periods of potential liquidity pressure, although occasional improvements in the current ratio indicate that such pressures are not consistent. The overall financial position, as reflected by the current ratio, highlights the importance of closely managing current assets and liabilities to sustain short-term financial stability.
Quick Ratio
T-Mobile US Inc., quick ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash and cash equivalents | 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) | 6,631) | 4,055) | 7,793) | 6,677) | ||||||
| Accounts receivable, net of allowance for credit losses | 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) | 4,194) | 4,130) | 4,546) | 3,612) | ||||||
| Equipment installment plan receivables, net of allowance for credit losses and imputed discount | 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) | 4,748) | 4,306) | 4,064) | 3,841) | ||||||
| Total quick assets | 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) | 15,573) | 12,491) | 16,403) | 14,130) | ||||||
| Current liabilities | 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) | 23,499) | 19,247) | 21,837) | 19,495) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | 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 | 0.66 | 0.65 | 0.75 | 0.72 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 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 | 0.45 | 0.46 | 0.34 | 0.37 | ||||||
| Verizon Communications Inc. | 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 | 0.57 | 0.78 | 0.65 | 0.84 | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 12,993 ÷ 24,301 = 0.53
2 Click competitor name to see calculations.
- Quick Assets
- The total quick assets exhibit notable fluctuations across the periods. Initially, the values range between approximately 12,000 and 16,000 million US dollars, with no consistent upward or downward trend through 2021 and 2022. Starting in the first quarter of 2023, quick assets display a somewhat volatile pattern, peaking near 20,600 million in mid-2025 while experiencing declines in subsequent quarters, notably dropping below 13,000 million in the final quarter observed. The changes suggest variability in liquid assets available over the quarters without a clear long-term trend.
- Current Liabilities
- Current liabilities generally remain high and fluctuate between approximately 19,000 and 26,000 million US dollars over the examined periods. There is a visible upward movement during 2021, with peaks in late 2021 and late 2022 nearing or exceeding 24,000 million. In 2023, liabilities oscillate but show a moderate decline towards late 2023 and early 2024. However, by mid to late-2025, current liabilities again approach levels around 24,000 million, indicating persistent substantial short-term obligations.
- Quick Ratio
- The quick ratio, representing the company's ability to cover current liabilities with liquid assets, remains below 1 throughout all quarters, indicating that quick assets are consistently less than current liabilities. The ratio fluctuates within a narrow range, mostly between 0.53 and 0.88. There is a slight improvement during 2023 and early 2024, with ratios approaching or exceeding 0.8 in some quarters, reflecting improved liquidity positions. However, by the end of the dataset, the quick ratio decreases to 0.53, suggesting a potential weakening in short-term liquidity relative to the previous quarter.
- Overall Analysis
- The financial data demonstrate that the company maintains sizeable current liabilities relative to quick assets, with the quick ratio consistently below 1, signaling a possible liquidity concern depending on the company's access to other liquid resources or credit facilities. The fluctuations in total quick assets and current liabilities contribute to volatility in the quick ratio, without a sustained trend toward improvement or deterioration over the long term. The peak in quick assets around mid-2025 may indicate a temporary buildup of liquid resources, but the subsequent decline and quick ratio drop suggest this may not be sustained. Thus, the data imply an ongoing need to monitor liquidity closely to ensure meeting short-term obligations efficiently.
Cash Ratio
T-Mobile US Inc., cash ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash and cash equivalents | 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) | 6,631) | 4,055) | 7,793) | 6,677) | ||||||
| Total cash assets | 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) | 6,631) | 4,055) | 7,793) | 6,677) | ||||||
| Current liabilities | 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) | 23,499) | 19,247) | 21,837) | 19,495) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | 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 | 0.28 | 0.21 | 0.36 | 0.34 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 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 | 0.25 | 0.26 | 0.14 | 0.15 | ||||||
| Verizon Communications Inc. | 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 | 0.06 | 0.24 | 0.12 | 0.26 | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,310 ÷ 24,301 = 0.14
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets exhibit significant volatility across the reported periods. Starting from a moderate level of 6,677 million USD at the first quarter of 2021, there is a notable decline to as low as 3,151 million USD in mid-2022, followed by intermittent recoveries peaking at 9,754 million USD in the third quarter of 2024. However, this upward trend is not sustained, as cash assets sharply drop to 3,310 million USD by the third quarter of 2025. This pattern indicates periodic fluctuations in liquidity, potentially reflecting varying operational cash flows, financing activities, or investment decisions.
- Current liabilities
- Current liabilities remain relatively elevated throughout the period, starting at 19,495 million USD in the first quarter of 2021 and exhibiting fluctuations within a range of approximately 19,200 to 24,700 million USD. Though the figure peaks at 24,742 million USD in the last quarter of 2022 and demonstrates some periods of reduction, there is no clear sustained downward or upward trend. This stability combined with periodic spikes suggests ongoing operational liabilities and commitments that persist consistently over the quarters.
- Cash ratio
- The cash ratio, which measures the company’s ability to cover current liabilities with cash and cash equivalents, fluctuates between 0.14 and 0.51, illustrating variability in short-term liquidity. The ratio starts at 0.34 in early 2021, dips to its lowest at 0.14 in the third quarter of 2025, and reaches peak values of 0.51 in the mid-2025 period. Despite occasional improvements in liquidity, the ratio generally remains below 0.5, indicating that cash assets cover less than half of the current liabilities throughout most periods. This suggests a potential reliance on other forms of current assets or financing to meet short-term obligations.