Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
T-Mobile US Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | T-Mobile US Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | T-Mobile US Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | T-Mobile US Inc. payables turnover ratio increased from 2019 to 2020 and from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | T-Mobile US Inc. number of days of payables outstanding decreased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | T-Mobile US Inc. cash conversion cycle deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Inventory Turnover
T-Mobile US Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 36,605) | 28,266) | 18,521) | 18,354) | 17,708) | |
| Inventories | 2,567) | 2,527) | 964) | 1,084) | 1,566) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 14.26 | 11.19 | 19.21 | 16.93 | 11.31 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| AT&T Inc. | 23.04 | 21.63 | 29.38 | 28.66 | 34.78 | |
| Verizon Communications Inc. | 18.43 | 28.51 | 38.49 | 41.55 | 49.86 | |
| Inventory Turnover, Sector | ||||||
| Telecommunication Services | 19.01 | 19.88 | 29.98 | 29.53 | 30.39 | |
| Inventory Turnover, Industry | ||||||
| Communication Services | 37.86 | 37.08 | 45.60 | 41.93 | 41.39 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 36,605 ÷ 2,567 = 14.26
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | T-Mobile US Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Receivables Turnover
T-Mobile US Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 80,118) | 68,397) | 44,998) | 43,310) | 40,604) | |
| Accounts receivable, net of allowance for credit losses | 4,167) | 4,254) | 1,888) | 1,769) | 1,915) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 19.23 | 16.08 | 23.83 | 24.48 | 21.20 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| AT&T Inc. | 9.61 | 8.50 | 8.00 | 6.45 | 9.72 | |
| Verizon Communications Inc. | 5.60 | 5.36 | 5.19 | 5.21 | 5.36 | |
| Receivables Turnover, Sector | ||||||
| Telecommunication Services | 8.39 | 7.61 | 7.17 | 6.47 | 7.80 | |
| Receivables Turnover, Industry | ||||||
| Communication Services | 8.01 | 7.47 | 7.31 | 7.20 | 7.91 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net of allowance for credit losses
= 80,118 ÷ 4,167 = 19.23
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | T-Mobile US Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Payables Turnover
T-Mobile US Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 36,605) | 28,266) | 18,521) | 18,354) | 17,708) | |
| Accounts payable | 6,499) | 5,564) | 4,322) | 5,487) | 6,182) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.63 | 5.08 | 4.29 | 3.34 | 2.86 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| AT&T Inc. | 2.59 | 2.51 | 2.84 | 2.94 | 3.17 | |
| Verizon Communications Inc. | 7.00 | 7.68 | 7.08 | 7.68 | 7.30 | |
| Payables Turnover, Sector | ||||||
| Telecommunication Services | 3.81 | 3.62 | 3.78 | 3.86 | 3.89 | |
| Payables Turnover, Industry | ||||||
| Communication Services | 5.11 | 4.98 | 4.82 | 5.26 | 5.16 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 36,605 ÷ 6,499 = 5.63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | T-Mobile US Inc. payables turnover ratio increased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
T-Mobile US Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 20,891) | 23,885) | 9,305) | 8,281) | 8,915) | |
| Less: Current liabilities | 23,499) | 21,703) | 12,506) | 10,267) | 11,515) | |
| Working capital | (2,608) | 2,182) | (3,201) | (1,986) | (2,600) | |
| Revenues | 80,118) | 68,397) | 44,998) | 43,310) | 40,604) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | 31.35 | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| AT&T Inc. | — | — | — | — | — | |
| Verizon Communications Inc. | — | 8.59 | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Telecommunication Services | — | 64.80 | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Communication Services | 8.56 | 4.72 | 7.01 | 6.63 | 5.53 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Working capital turnover = Revenues ÷ Working capital
= 80,118 ÷ -2,608 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
T-Mobile US Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 14.26 | 11.19 | 19.21 | 16.93 | 11.31 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 26 | 33 | 19 | 22 | 32 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| AT&T Inc. | 16 | 17 | 12 | 13 | 10 | |
| Verizon Communications Inc. | 20 | 13 | 9 | 9 | 7 | |
| Average Inventory Processing Period, Sector | ||||||
| Telecommunication Services | 19 | 18 | 12 | 12 | 12 | |
| Average Inventory Processing Period, Industry | ||||||
| Communication Services | 10 | 10 | 8 | 9 | 9 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 14.26 = 26
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
T-Mobile US Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 19.23 | 16.08 | 23.83 | 24.48 | 21.20 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 19 | 23 | 15 | 15 | 17 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| AT&T Inc. | 38 | 43 | 46 | 57 | 38 | |
| Verizon Communications Inc. | 65 | 68 | 70 | 70 | 68 | |
| Average Receivable Collection Period, Sector | ||||||
| Telecommunication Services | 43 | 48 | 51 | 56 | 47 | |
| Average Receivable Collection Period, Industry | ||||||
| Communication Services | 46 | 49 | 50 | 51 | 46 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 19.23 = 19
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
T-Mobile US Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 26 | 33 | 19 | 22 | 32 | |
| Average receivable collection period | 19 | 23 | 15 | 15 | 17 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 45 | 56 | 34 | 37 | 49 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| AT&T Inc. | 54 | 60 | 58 | 70 | 48 | |
| Verizon Communications Inc. | 85 | 81 | 79 | 79 | 75 | |
| Operating Cycle, Sector | ||||||
| Telecommunication Services | 62 | 66 | 63 | 68 | 59 | |
| Operating Cycle, Industry | ||||||
| Communication Services | 56 | 59 | 58 | 60 | 55 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 26 + 19 = 45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
T-Mobile US Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.63 | 5.08 | 4.29 | 3.34 | 2.86 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 65 | 72 | 85 | 109 | 127 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| AT&T Inc. | 141 | 145 | 129 | 124 | 115 | |
| Verizon Communications Inc. | 52 | 48 | 52 | 48 | 50 | |
| Average Payables Payment Period, Sector | ||||||
| Telecommunication Services | 96 | 101 | 97 | 95 | 94 | |
| Average Payables Payment Period, Industry | ||||||
| Communication Services | 71 | 73 | 76 | 69 | 71 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.63 = 65
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | T-Mobile US Inc. number of days of payables outstanding decreased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
T-Mobile US Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 26 | 33 | 19 | 22 | 32 | |
| Average receivable collection period | 19 | 23 | 15 | 15 | 17 | |
| Average payables payment period | 65 | 72 | 85 | 109 | 127 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -20 | -16 | -51 | -72 | -78 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| AT&T Inc. | -87 | -85 | -71 | -54 | -67 | |
| Verizon Communications Inc. | 33 | 33 | 27 | 31 | 25 | |
| Cash Conversion Cycle, Sector | ||||||
| Telecommunication Services | -34 | -35 | -34 | -27 | -35 | |
| Cash Conversion Cycle, Industry | ||||||
| Communication Services | -15 | -14 | -18 | -9 | -16 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 26 + 19 – 65 = -20
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | T-Mobile US Inc. cash conversion cycle deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |