T-Mobile US Inc. (NASDAQ:TMUS)

Inventory Turnover

The inventory turnover ratio showed an overall upward trend from 11.19 in 2020 to 18.45 in 2024, indicating increased efficiency in managing and selling inventory. The ratio peaked at 19.22 in 2022 before slightly declining in 2023 and then rising again in 2024.

Receivables Turnover

The receivables turnover ratio experienced fluctuations, increasing from 16.0 in 2020 to 19.1 in 2021, dropping to 17.9 in 2022, then declining further to 16.74 in 2023 before rising again to 19.04 in 2024. This suggests varying effectiveness in collecting receivables over the periods.

Payables Turnover

The payables turnover ratio showed a general upward movement from 5.08 in 2020 to 6.99 in 2024, implying a tendency towards faster payment of suppliers in recent years, with some fluctuations in the intermediate years.

Working Capital Turnover

Data for working capital turnover is only available for 2020, at 31.35, with no subsequent data to assess any trend or change.

Average Inventory Processing Period

The average inventory processing period decreased markedly from 33 days in 2020 to a low of 19 days in 2022, indicating significant improvement in inventory management. This period stabilized around 20 days in 2023 and 2024.

Average Receivable Collection Period

The average receivable collection period reduced from 23 days in 2020 to 19 days in 2021, then slightly increased to 20 days in 2022 and 22 days in 2023 before improving again to 19 days in 2024. This suggests fluctuations in how quickly the company collects payments from customers.

Operating Cycle

The operating cycle shortened from 56 days in 2020 to a low of 39 days in 2022, indicating improved operational efficiency. A slight increase to 42 days occurred in 2023, followed by a return to 39 days in 2024.

Average Payables Payment Period

The average payables payment period declined steadily from 72 days in 2020 to 52 days in 2024, reflecting quicker payments to suppliers, especially notable after a peak of 73 days in 2022 and subsequent drops in 2023 and 2024.

Cash Conversion Cycle

The cash conversion cycle remained negative throughout the periods, improving from -16 days in 2020 to -34 days in 2022, signifying enhanced cash flow efficiency by lengthening the time the company holds payables relative to inventory and receivables. However, there was a reversal with the cycle lengthening to -25 days in 2023 and -13 days in 2024, indicating a reduction in cash flow efficiency in the most recent years.

Cost of Revenues

The cost of revenues exhibited an overall increasing trend from 2020 to 2021, rising from $28,266 million to $36,605 million. Following this peak, the figure slightly decreased in 2022 to $36,206 million and continued to decline in the subsequent years, reaching $29,653 million by the end of 2024. This pattern suggests an initial surge in expenses related to revenue generation, followed by a reduction over the later periods.

Inventory Levels

Inventory levels showed a consistent downward trend over the analyzed periods. Starting at $2,527 million in 2020, inventory peaked slightly at $2,567 million in 2021 before declining continuously to $1,607 million by 2024. This reduction points towards improved inventory management or shifts in supply chain dynamics resulting in lower held stock.

Inventory Turnover Ratio

The inventory turnover ratio increased from 11.19 in 2020 to a peak of 19.22 in 2022, indicating enhanced efficiency in converting inventory into sales. Despite a minor dip to 17.99 in 2023, the ratio rose again to 18.45 in 2024. These figures reflect a generally positive trend in inventory utilization, suggesting better operational efficiency and possibly an adaptive inventory strategy aligned with revenue trends.

Revenue Trends

Revenues experienced a growth trend from 2020 through 2021, increasing from $68,397 million to $80,118 million. However, in 2022 and 2023, there was a slight decline to $79,571 million and $78,558 million respectively. In 2024, revenues rose again to $81,400 million, indicating recovery and positive momentum after the prior two years of marginal decline.

Accounts Receivable, Net of Allowance for Credit Losses

The net accounts receivable balance showed a modest downward trend initially, from $4,276 million in 2020 to $4,194 million in 2021. This was followed by an increase over the next two years, peaking at $4,692 million in 2023. There was a decrease in 2024 to $4,276 million, returning to the same level as 2020. This pattern suggests variations in outstanding customer balances that may reflect changes in credit policies, collection efficiency, or sales terms.

Receivables Turnover Ratio

The receivables turnover ratio improved notably from 16 in 2020 to a peak of 19.1 in 2021, indicating accelerated collection of receivables in that period. The ratio then declined moderately in 2022 to 17.9 and further to 16.74 in 2023, suggesting a relative slowdown in collection efficiency. The ratio rebounded to 19.04 in 2024, close to its highest level, pointing to improved receivables management or stronger cash collection in the most recent year.

Overall Analysis

The company’s revenue growth exhibited fluctuations but ended with an upward trend in the final year analyzed. The accounts receivable balance fluctuated moderately, with an increase during the middle years followed by normalization. Receivables turnover mirrored these changes, with collection efficiency peaking in 2021, softening in subsequent years, and recovering strongly by 2024. These trends imply active management adjustments in credit and cash collection policies, corresponding to shifts in revenue and working capital dynamics.

The analyzed financial data reveals several noteworthy trends in the cost of revenues, accounts payable, and payables turnover ratios across the five-year period ending December 31, 2024.

Cost of Revenues

The cost of revenues increased significantly from 28,266 million US dollars in 2020 to a peak of 36,605 million US dollars in 2021. After this peak, there was a slight decline to 36,206 million US dollars in 2022, followed by a more pronounced decrease to 30,188 million US dollars in 2023, with a further slight decline to 29,653 million US dollars by the end of 2024. This pattern suggests that the company experienced increased costs initially but then managed to reduce these costs in the subsequent years, possibly due to operational efficiencies or cost-cutting measures.

Accounts Payable

Accounts payable increased steadily from 5,564 million US dollars in 2020 to a peak of 7,213 million US dollars in 2022. However, this upward trend reversed sharply in 2023 with a decline to 5,573 million US dollars and a further decrease to 4,242 million US dollars in 2024. The reversal from 2023 onwards might indicate improved payment discipline, reduced purchasing, or changes in credit terms with suppliers.

Payables Turnover Ratio

The payables turnover ratio showed a generally positive trend over the period. It rose from 5.08 in 2020 to 5.63 in 2021, then decreased slightly to 5.02 in 2022. From 2022 onwards, it increased again to 5.42 in 2023, reaching a notably high level of 6.99 by 2024. The ratio's increase in the later years indicates the company might be paying its suppliers more quickly or managing its payable balances more efficiently relative to cost of revenues. The spike to 6.99 suggests a substantial acceleration in turnover in 2024.

Overall, the data indicates that after a phase of growing costs and payable balances, the company took steps that resulted in lower costs of revenues and reduced accounts payable in the later years, accompanied by a faster turnover of payables. This combination of trends points towards enhanced operational efficiency and potential improvements in working capital management.

The financial data reveals several notable trends over the observed periods. Working capital demonstrates significant volatility, starting positive with a value of 2,182 million US$ at the end of 2020, followed by a sharp decline into negative territory from 2021 through 2024. The lowest working capital is recorded in 2022 at -5,675 million US$, after which there is a gradual recovery in 2023 and 2024 but remaining negative at -1,913 million US$ and -1,770 million US$, respectively.

In contrast, revenues show a positive growth trend over the same timeframe. Revenues increased from 68,397 million US$ in 2020 to 80,118 million US$ in 2021, marking a substantial increase. Although revenues slightly decreased in 2022 to 79,571 million US$, the values remain relatively stable, followed by minor fluctuations with a slight decline to 78,558 million US$ in 2023 and a subsequent increase to 81,400 million US$ in 2024.

The working capital turnover ratio is only available for the year ending 2020 and is notably high at 31.35. No subsequent data is provided for this ratio in the following years, which limits the ability to analyze operational efficiency or the relationship between revenues and working capital over time.

Overall, the data suggests that despite declining or negative working capital in recent years, the company maintained relatively stable and growing revenues. The negative working capital might indicate efficient use of current liabilities or possibly tighter liquidity management. However, the significant fluctuations and sustained negative working capital values warrant attention for potential liquidity risk or changes in working capital management policies.

Inventory Turnover

The inventory turnover ratio exhibits a consistent upward trend from 2020 through 2024, increasing from 11.19 in 2020 to 18.45 in 2024. This indicates an improvement in the efficiency with which inventory is being managed and sold over these years, peaking notably at 19.22 in 2022 before experiencing a slight decline yet maintaining a high level in subsequent years.

Average Inventory Processing Period

The average inventory processing period shows a marked decrease during the observed timeframe, dropping from 33 days in 2020 to 20 days in 2023, where it stabilizes through 2024. This reduction corresponds with the increase in inventory turnover, suggesting more rapid inventory movement and reduced holding time.

Overall Analysis

These trends collectively demonstrate enhanced inventory management efficiency, with faster turnover and shorter holding periods. Such improvements likely contribute to better cash flow management and operational performance.

Receivables Turnover

The receivables turnover ratio demonstrates some fluctuation over the five-year period. It started at 16 in 2020, increased significantly to 19.1 in 2021, followed by a slight decline to 17.9 in 2022. The ratio continued to trend downward to 16.74 in 2023 but rose again to 19.04 in 2024. This pattern indicates variability in how effectively the company collects its receivables, with stronger performance in 2021 and 2024.

Average Receivable Collection Period

The average receivable collection period inversely mirrors the receivables turnover ratio, as expected. It decreased from 23 days in 2020 to 19 days in 2021, indicating improved efficiency in collecting receivables. There was a slight increase to 20 days in 2022 and 22 days in 2023, suggesting some easing in collection timing or more lenient credit policies. The period improved again to 19 days by 2024, consistent with the uptick in receivables turnover ratio in that year.

Overall Analysis

Throughout the observed timeframe, the company's receivables management exhibits moderate variability. The peaks in receivables turnover in 2021 and 2024, paired with the shorter collection periods in those years, imply periods of enhanced operational efficiency in receivable collections. Meanwhile, the slight declines in 2022 and 2023 suggest some temporary softness in this area. The general ability to collect receivables within a roughly 19 to 23-day window indicates a relatively consistent approach to credit and collections.

Average Inventory Processing Period

The average inventory processing period exhibited a notable downward trend from 33 days in 2020 to 19 days in 2022, indicating an improvement in inventory turnover efficiency. This period slightly increased to 20 days in 2023 and remained stable in 2024, suggesting a stabilization in inventory management practices after initial gains.

Average Receivable Collection Period

The average receivable collection period showed some variability across the years. It decreased from 23 days in 2020 to 19 days in 2021, indicating faster collections. However, it slightly increased to 20 days in 2022 and 22 days in 2023 before returning to 19 days in 2024. This pattern suggests fluctuations in accounts receivable management but generally a maintenance of efficient collection practices by the end of the observed period.

Operating Cycle

The operating cycle, representing the combined duration of inventory processing and receivable collection, decreased from 56 days in 2020 to 39 days in 2022, highlighting an overall enhancement in operational efficiency. The cycle experienced a slight rise to 42 days in 2023 but reverted to 39 days in 2024, implying a general trend toward maintaining a shorter operating cycle over time.

Payables Turnover Ratio

The payables turnover ratio demonstrates some fluctuations during the observed period. Starting at 5.08 in 2020, it increased to 5.63 in 2021, indicating a faster rate of paying off suppliers. However, it dipped to 5.02 in 2022, suggesting a slowdown in payment frequency during that year. Subsequently, the ratio increased again to 5.42 in 2023 and saw a significant rise to 6.99 in 2024, which marks the highest level in the series. This upward trend in 2024 reflects a marked improvement in the company's ability to turnover its payables more rapidly compared to previous years.

Average Payables Payment Period

The average payables payment period decreased overall from 72 days in 2020 to 52 days in 2024. After a reduction to 65 days in 2021, it increased to 73 days in 2022, indicating that the company took longer to pay its suppliers during that year. However, this was followed by a decline to 67 days in 2023 and a more pronounced drop to 52 days in 2024. The downward trend starting in 2023 suggests a shift toward quicker payments to suppliers, consistent with the increasing payables turnover ratio noted in the same period.

Overall Analysis

The data reveals a cyclical pattern until 2022, when both payables turnover and payment period fluctuated, reflecting variability in payment practices. From 2023 onward, there is a noticeable shift towards greater efficiency in managing payables, characterized by a rising turnover ratio and a shortening payment period. The strong increase in payables turnover ratio and simultaneous reduction in days payable in 2024 indicate an operational improvement in supplier payments, which could imply better liquidity management or renegotiated payment terms.

Average Inventory Processing Period

The average inventory processing period demonstrates a clear declining trend from 33 days in 2020 to 19 days in 2022. After 2022, the period stabilizes around 20 days through 2023 and 2024. This suggests improved efficiency in managing inventory turnover over the analyzed timeframe, with a significant reduction in the initial years followed by consistent performance.

Average Receivable Collection Period

The average receivable collection period fluctuates moderately across the years. Starting at 23 days in 2020, it decreases to 19 days in 2021, then slightly rises to 22 days in 2023 before dropping again to 19 days in 2024. These variations indicate some inconsistencies in the speed of collecting receivables, though the overall trend remains relatively stable around the 20-day mark.

Average Payables Payment Period

The average payables payment period starts at 72 days in 2020, showing a general downward movement to 52 days by 2024, despite an increase to 73 days in 2022. This suggests that, after a temporary extension in payment terms in 2022, the company accelerated its payments to suppliers in the later years, potentially indicating changes in supplier relations or cash management strategies.

Cash Conversion Cycle

The cash conversion cycle remains negative throughout the period, indicating that the company collects cash from customers faster than it pays its suppliers. It improves from -16 days in 2020 to a low of -34 days in 2022, signaling an increasingly efficient cash flow cycle at that time. However, this efficiency diminishes somewhat in subsequent years, rising to -25 days in 2023 and -13 days by 2024. Despite this reduction in efficiency, the cycle still reflects positive cash management as it remains below zero.