Stock Analysis on Net

T-Mobile US Inc. (NASDAQ:TMUS)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

T-Mobile US Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 14.26 11.19 19.21 16.93 11.31
Receivables turnover 19.23 16.08 23.83 24.48 21.20
Payables turnover 5.63 5.08 4.29 3.34 2.86
Working capital turnover 31.35
Average No. Days
Average inventory processing period 26 33 19 22 32
Add: Average receivable collection period 19 23 15 15 17
Operating cycle 45 56 34 37 49
Less: Average payables payment period 65 72 85 109 127
Cash conversion cycle -20 -16 -51 -72 -78

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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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 + 1965 = -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.