T-Mobile US Inc. (NASDAQ:TMUS)

Inventory Turnover

The inventory turnover ratio exhibits considerable fluctuations across the reported quarters. Starting with a value of 11.19 in the earliest data point available, the ratio generally increases, reaching peak values around 23.32 and 22.27 in later periods. Some quarters see notable decreases, such as drops to approximately 14.26 and 16.36. Overall, the ratio indicates generally improving efficiency in inventory management, though periodic declines suggest some variability in inventory handling.

Receivables Turnover

This ratio displays moderate fluctuations, initially rising from 16 to above 21, then experiencing a few periods of decline back into the upper teens. The values tend to stabilize around 18 to 19 in more recent quarters. This trend indicates a relatively consistent ability to collect receivables, with some temporary variability but no clear long-term deterioration or improvement.

Working Capital Turnover

The data for working capital turnover is sparse, with values recorded in limited and non-continuous periods. Early on, the ratio reaches a value of 31.35, later jumping significantly to 50.77 in one period, followed by a drop to values around 21.69 and 18 in subsequent quarters. Such volatility suggests irregularities in the efficiency of working capital utilization, with occasional periods of very high turnover not sustained over time.

Average Inventory Processing Period

The average number of days to process inventory generally trends downward over time, indicating improving efficiency in inventory handling. Starting from 33 days, the period reduces steadily to as low as 16 days in several quarters, with occasional rises back to the low 20s. This improvement corresponds inversely with the observed increases in inventory turnover.

Average Receivable Collection Period

The collection period generally remains stable, fluctuating modestly around 19 to 22 days throughout the quarters. This stability suggests consistent performance in collecting receivables, without significant improvement or deterioration.

Operating Cycle

The operating cycle, defined as the sum of average inventory processing and receivable collection periods, shows a gradual reduction from 56 days to ranges near 37 to 43 days later on. This decline indicates a shortening of the overall cash conversion cycle, signifying enhanced operational efficiency in managing inventory and receivables together over the period.

Cost of revenues

The cost of revenues exhibited a fluctuating pattern over the observed periods. Initially, there was a notable increase from 4,168 million in March 31, 2020, peaking at 10,452 million in December 31, 2021. This was followed by a general decline through 2023, reaching a low around 7,004 million in June 30, 2023. Subsequently, the cost of revenues trended upward again, with some volatility, reaching 8,785 million by December 31, 2024, before slightly decreasing toward mid-2025. This overall volatility may reflect changing operational costs, sales volumes, or pricing strategies during these quarters.

Inventory

Inventory levels grew steadily from 1,225 million in March 31, 2020 to a peak of 2,715 million in March 31, 2022. After this point, inventory figures generally decreased, falling to approximately 1,373 million by June 30, 2023. Thereafter, inventory showed moderate fluctuations but tended to stabilize between approximately 1,500 and 1,900 million through 2024 into mid-2025. This pattern suggests active management of stock levels possibly responding to changes in demand or supply chain conditions.

Inventory turnover

Available data for inventory turnover starts from December 31, 2020, showing initial values of around 11.19 rising sharply to 20.39 by September 30, 2021. After a slight decline in late 2021, turnover held generally high levels ranging mostly between 14 and 23 times through the subsequent periods. Peaks were observed particularly in September 30, 2023 (23.32) and December 31, 2024 (22.27). Despite some dips, the turnover ratios indicate relatively efficient inventory utilization, with generally faster inventory turnover in later periods compared to earlier quarters.

Summary

The cost of revenues and inventory movements suggest a business environment characterized by variable sales or production demands, with periodic increases in operational costs and inventory accumulation followed by adjustment phases. The rising and sustained high inventory turnover ratios imply improved operational efficiency in managing stock relative to sales over time. The correlation between decreasing inventory volumes and high turnover ratios in recent periods points to a more optimized inventory management approach, balancing stock levels with cost control measures. Volatility in costs and inventory metrics signals a dynamic operational landscape requiring continual monitoring and adjustment.

The revenue figures exhibit notable fluctuations across the observed periods. Starting at $11,113 million in March 2020, revenues surged sharply by June 2020, reaching a peak of $20,785 million by December 2021. Subsequently, the revenue shows a moderate decline and periods of slight variation, with a general tendency to stabilize between approximately $19,000 million and $21,000 million in the most recent quarters. By March 2025, revenues reached $20,886 million, indicating a recovery towards previous highs.

The accounts receivable, net of allowance for credit losses, follows a pattern somewhat correlated with revenues but with distinctive fluctuations. Beginning at $1,862 million in March 2020, the value rises significantly in subsequent quarters, peaking above $4,500 million multiple times between 2020 and 2025. The receivables values oscillate between $4,000 million and $4,700 million from 2021 onward, suggesting relatively consistent outstanding receivables during this period.

Receivables turnover ratios, available from March 2021 onward, demonstrate some variability but generally indicate an efficient collection process. The ratio starts at 16, then climbs to a high of 21.33 by June 2021. Thereafter, it fluctuates mostly between 17 and 19, with minor deviations. This trend reflects a stable ability to convert receivables to cash within the assessed periods, without significant deterioration or improvement.

Revenue Trend

Initial rapid growth followed by fluctuating stabilization in the range of $19 billion to $21 billion, with the latest quarters showing recovery towards highs.

Accounts Receivable Movements

Substantial increase from 2020 onwards, maintaining a relatively stable but elevated level post-2021, signifying steady levels of outstanding credit.

Receivables Turnover Ratio

Available data reflects stable and moderate efficiency in collecting receivables, sustaining a typical ratio between 17 and 19 across most periods.

Overall, the data reveals a strong revenue base with seasonal and economic fluctuations affecting quarterly results. The accounts receivable and turnover ratios imply consistent credit management practices, maintaining operational liquidity and minimizing collection risk within the observed timeframe.

Working Capital

Working capital showed notable volatility throughout the periods. Initially negative at -5,269 million US$ in March 2020, it shifted to positive figures by June 2020, peaking at 2,182 million US$ by December 2020. Thereafter, it declined again, reaching a low of -5,675 million US$ in December 2022. A moderate recovery trend is observable from early 2023 until mid-2024, with fluctuations continuing up to June 2025, where working capital finally rose to a positive 4,670 million US$. These fluctuations indicate considerable variability in the firm's short-term financial flexibility over the analyzed timespan.

Revenues

Revenues generally exhibited growth with some fluctuations. Starting at 11,113 million US$ in March 2020, revenues increased steadily, surpassing the 20,000 million US$ mark in late 2020. Some slight declines were noted through 2022 but overall revenues remained robust and resumed upward momentum by late 2023. The highest recorded revenue for the period was 21,872 million US$ in March 2025, indicating a positive revenue growth trajectory with temporary plateaus or minor regressions.

Working Capital Turnover

The working capital turnover ratio data was sparse and incomplete, with values of 31.35 and 50.77 recorded at unspecified quarters and lower ratios such as 21.69 and 18 observed in later quarters. These elevated and variable turnover ratios suggest the company may have been managing working capital with varying efficiency, possibly correlating with the fluctuations in working capital figures. However, definitive trend analysis is limited by the incomplete data.

Overall Insights

The data reflects a company experiencing volatility in its short-term liquidity as seen in working capital swings, coupled with generally increasing revenue levels. Revenue growth appears consistent despite fluctuations in liquidity, potentially indicating effective operational income generation amid changing working capital conditions. The variable working capital turnover ratios point to inconsistent efficiency in using working capital for revenue generation. Continuous monitoring and strategic management of working capital appear critical to maintaining financial stability. The upward trend in revenues towards the end of the period suggests improving market performance or pricing strategies.

The analysis of the inventory-related financial ratios over the observed periods reveals the following trends and insights:

Inventory turnover ratio

The inventory turnover ratio shows notable fluctuations across the quarters. Starting from the earliest available data in March 2020, the ratio exhibits a general upward trend through 2020 and 2021, peaking around September and December 2021 with values above 20. This suggests an improvement in the efficiency of inventory management during that period.

However, from 2022 onward, the ratio experiences variability, alternating between increases and decreases without a clear linear trend. The highest recorded turnover ratio occurs in September 2023 at 23.32, indicating a peak in inventory turnover efficiency. Following that peak, the ratio declines in the subsequent quarters, demonstrating periods of slower inventory movement. By mid-2025, the ratio settles around values between 15.47 and 18.10, which are moderate relative to earlier highs.

Average inventory processing period (number of days)

The average inventory processing period exhibits an inverse relationship to the inventory turnover ratio, as expected. In 2020, the number of days decreased substantially from 33 days in early 2020 to 18 days by the end of the year, signaling a more rapid processing of inventory.

During 2021 and 2022, the period fluctuated between the high teens and mid-20s, indicating some variability in inventory holding times. Notably, in early 2023, the processing period shortened to 16 days, coinciding with a peak in inventory turnover, which reflects improved operational efficiency.

Subsequently, the average processing period again showed variability, alternating between approximately 16 and 24 days through 2024 and into mid-2025. This suggests intermittent changes in inventory management practices or demand patterns affecting inventory retention times.

Overall, the data indicates an enhancement in inventory management efficiency through 2020 and 2021, as demonstrated by increasing turnover ratios and decreasing inventory processing periods. Following these improvements, the measures exhibit variability, reflecting potential operational adjustments or market influences impacting inventory dynamics. The peaks and troughs in these metrics signal a responsive approach to inventory control rather than a steady trend, which may warrant further investigation into underlying business factors during these periods.

Receivables Turnover Ratio

The receivables turnover ratio shows notable fluctuations over the presented periods. Starting from a value of 16 in March 2021, it experienced an increase to a peak of 21.33 in June 2021. This peak was followed by a decrease in the next quarter to 17.45 in September 2021, then a recovery to 19.29 in December 2021. Throughout 2022 and the subsequent quarters, the ratio generally stabilized within the 17 to 20 range, displaying periodic minor variances but no strong directional trend. Towards the most recent quarters, the ratio remains relatively steady, ending around 18.28 in June 2025. This indicates a consistent efficiency in collecting receivables, with occasional short-term variations.

Average Receivable Collection Period (Days)

The average receivable collection period inversely corresponds with the turnover ratio, beginning at 23 days in March 2021 and quickly improving to 17 days in June 2021. Following this improvement, the period fluctuated mildly between 18 and 22 days over subsequent quarters. There is a slight tendency towards lengthening the collection period, moving from 20 days at the end of 2022 to about 21 to 22 days in early 2023 and then settling back around 19 to 20 days in the latest periods through mid-2025. Overall, the collection period demonstrates relative stability with minor oscillations, implying steady credit management practices.

Average Inventory Processing Period

The average inventory processing period exhibits a fluctuating but generally decreasing trend from the first available data point in March 2021 through June 2025. Initially, the period shortens significantly from 33 days in March 2021 to 18 days by September 2021 and December 2021. Subsequently, it oscillates between 16 and 26 days, indicating some variability in inventory turnover efficiency. Notably, from mid-2022 onward, the period mostly stabilizes below 22 days, suggesting an improvement in inventory management and faster processing times with minor exceptions seen in December 2023 and September 2024.

Average Receivable Collection Period

The receivable collection period remains relatively stable across the observed timeline, ranging primarily between 17 and 23 days. Starting at 23 days in March 2021, it decreases to a low of 17 days in June 2021 but shows a moderate upward tendency afterward, frequently moving around the 19-22 day range. This consistency suggests steady effectiveness in credit management and collections, without significant deterioration or improvement.

Operating Cycle

The operating cycle trend mirrors the combined effects of inventory and receivable periods, showing a general reduction from 56 days in March 2021 to the mid-30s and low 40s in subsequent quarters. After a considerable drop to 37 days by December 2021, the cycle experiences some modest fluctuations, mostly remaining between 37 and 45 days. The relative stability since mid-2022 implies control over operational efficiencies, although occasional increases to around 42 to 43 days suggest intermittent challenges in optimizing the total time from inventory acquisition to cash collection.