T-Mobile US Inc. (NASDAQ:TMUS)

Current Ratio

The current ratio exhibited a generally fluctuating pattern over the observed periods. Initially, it increased significantly from 0.64 at March 31, 2020, to a peak of 1.1 in December 31, 2020, indicating an improvement in short-term liquidity. Subsequently, there is a gradual decline through most of 2021 and 2022, reaching a low of 0.77 by December 31, 2022. From early 2023 onwards, the current ratio demonstrated a recovery trend, increasing steadily to 1.21 by June 30, 2025. This suggests a strengthened ability to cover current liabilities with current assets over the long term, despite some intermediate volatility.

Quick Ratio

The quick ratio followed a trend similar to the current ratio but consistently remained lower, reflecting the exclusion of inventory from liquid assets. It showed a sharp increase early in the timeline, rising from 0.36 in March 31, 2020, to 0.84 at the end of the same year. Afterwards, the ratio experienced some decline and variability throughout 2021 and 2022, declining to a low near 0.57 in December 2022. From 2023 forward, the quick ratio rebounded, peaking close to 0.88 by September 30, 2024, before a slight dip, then finishing at 0.86 by June 30, 2025. This pattern again indicates fluctuating but overall improving liquid asset availability relative to current liabilities.

Cash Ratio

The cash ratio displayed the greatest relative volatility among the three liquidity measures. Starting very low at 0.08 in March 31, 2020, it rapidly climbed to 0.48 by mid and end of 2020, showing a substantial enhancement in cash and cash equivalents relative to current liabilities. However, during 2021 and 2022, the cash ratio declined substantially, with several quarters falling below 0.20. From early 2023, a notable upward trajectory is evident, with the ratio rising to peaks such as 0.51 in March 31, 2025. This suggests an improved cushion of cash relative to short-term obligations during this latter period, though cash liquidity was more constrained during the middle periods analyzed.

The analysis of available financial data reveals notable fluctuations in liquidity metrics over the observed periods, reflecting evolving working capital management and operational conditions.

Current Assets

Current assets exhibit a pattern of considerable volatility across quarters. Initially, a significant increase is seen from approximately 9.5 billion USD to over 24 billion USD within the first two quarters (March to June 2020). This is followed by oscillations with periodic declines and recoveries, generally maintaining a range between 17 billion USD and 27 billion USD during subsequent quarters. The latest periods show elevated values, with a peak near 27 billion USD by June 2025, indicating strengthened liquid asset positions or increased short-term resource availability.

Current Liabilities

Current liabilities also demonstrate variation but maintain a narrower band than assets, fluctuating mostly between roughly 14.8 billion USD and 26 billion USD. The early surge from March to June 2020 is notable, rising sharply from approximately 14.8 billion USD to 23.2 billion USD. Subsequently, liabilities remain relatively stable with minor rises and declines through the later periods. The data suggests active management of short-term obligations, with no consistent directional trend towards either accumulation or reduction.

Current Ratio

The current ratio starts relatively low at 0.64 in March 2020, indicating limited current asset cover against current liabilities initially. It peaks above 1.1 around December 2020, demonstrating an improved short-term liquidity position at that time. Following this peak, a general declining trend is observed through the next quarters, reaching lows around 0.77 to 0.81 through 2022. This points towards tighter liquidity conditions and potentially increased short-term financial risk during that timeframe. However, from 2023 onward, a recovery trend is noted, with the ratio steadily increasing, eventually exceeding 1.2 by the end of the dataset in June 2025. This improvement indicates enhanced ability to meet short-term liabilities with current assets in the most recent periods assessed.

Overall, the data reveals periods of both stress and recovery in liquidity. The fluctuations in current assets and liabilities correspond with the changing current ratio, highlighting variable short-term financial dynamics. The recent upward trend in the current ratio suggests a positive shift towards stronger liquidity management or more favorable operational cash flows.

Total Quick Assets

The total quick assets fluctuated markedly over the observed periods. Starting at 5,380 million USD in March 2020, there was a notable surge to a peak of 17,649 million USD in June 2020, followed by a period of volatility with values ranging roughly between 12,000 and 16,000 million USD in subsequent quarters. Despite this volatility, the later part of the timeline shows a generally stable pattern with amounts frequently near or above 14,000 million USD. The highest recorded quick assets appear toward the end of the timeline in June 2025 at 20,689 million USD, indicating a significant accumulation of liquid assets.

Current Liabilities

Current liabilities showed a rising trend through the initial timeline phases, moving from 14,756 million USD in March 2020 upward, peaking near 26,362 million USD in September 2022. Post this high point, liabilities decreased moderately and fluctuated mostly between 20,000 and 24,000 million USD in the subsequent quarters. The liabilities ended at a high range of above 22,000 million USD near June 2025, suggesting a constraint in short-term obligations relative to the assets.

Quick Ratio

The quick ratio maintained a generally low but variable level throughout the period, reflecting the company's liquidity condition relative to its current liabilities. It started below 0.4 in early 2020, improved notably to above 0.7 in mid-2020, and then floated between approximately 0.6 and 0.7 for a majority of the timeframe. A notable increase is observed towards the end of the analysis period, with the ratio approaching and exceeding 0.8 in early 2025. This suggests an improving ability to cover short-term liabilities with most liquid assets in the later stages.

Overall Insights

The data suggests that while total quick assets were subject to volatility, there was a general improvement in liquidity as indicated by the increasing quick ratio in the later years. Current liabilities spiked during the middle part of the observed periods but then moderated without dropping to initial low levels. The improving quick ratio toward the end indicates better short-term financial health and greater flexibility to meet immediate obligations. However, the ratio consistently stayed below 1, which implies current quick assets were less than current liabilities throughout the period, indicating a potential liquidity risk that requires ongoing monitoring.

Total cash assets

The total cash assets exhibit considerable fluctuations over the observed periods. Starting at 1,112 million US dollars in March 2020, cash assets surged dramatically to a peak of 11,076 million by June 2020. Following this peak, cash levels decreased and oscillated between approximately 3,000 million and 11,000 million throughout the subsequent quarters. Notably, the cash assets showed periodic increments towards the end of each year, with values around 6,000 to 7,000 million from late 2023 onwards, reaching a peak again of 12,003 million in March 2025 before slightly declining. This pattern suggests a dynamic cash management approach with significant short-term variations possibly driven by operational or investment activities.

Current liabilities

Current liabilities consistently remained higher than total cash assets throughout the periods, indicating a substantial short-term obligation profile. The values began at 14,756 million in March 2020 and generally increased to fluctuate between approximately 19,000 million and 26,000 million. The highest liabilities were observed in September 2022, reaching 26,362 million. There is a trend of modest decline or stabilization towards the latter periods of 2024 and early 2025, though liabilities remained elevated with values around 22,000 to 24,000 million. This persistence of high current liabilities relative to cash assets suggests ongoing reliance on short-term financing or accrued expenses.

Cash ratio

The cash ratio, representing the company's ability to cover current liabilities with cash assets, displays a consistent pattern of being below 1, indicating limited liquidity in terms of immediate cash coverage. Starting at a low 0.08 in March 2020, the ratio peaked near 0.48 to 0.51 at various points but generally fluctuated between 0.15 and 0.51. These variations correspond with the fluctuations in cash assets and current liabilities, reflecting periods where liquidity temporarily improved before declining again. The ratio's upward spikes in mid-2020 and early 2025 suggest occasional strengthening in liquidity; however, the overall values confirm that current liabilities substantially exceed cash holdings over this timeframe.