The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. T-Mobile US's current ratio for the quarter that ended in Dec. 2023 was 0.91.
T-Mobile US has a current ratio of 0.91. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If T-Mobile US has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for T-Mobile US's Current Ratio or its related term are showing as below:
TMUS'
s Current Ratio Range Over the Past 10 Years
Min: 0.74 Med: 0.9 Max: 1.59
Current: 0.91
During the past 13 years, T-Mobile US's highest Current Ratio was 1.59. The lowest was 0.74. And the median was 0.90.
TMUS's Current Ratio is ranked worse than 60.15% of 394
companies
in the Telecommunication Services industry
Industry Median: 1.025
vs TMUS: 0.91
T-Mobile US Current Ratio Historical Data
The historical data trend for T-Mobile US's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of T-Mobile US's Current Ratio
For the Telecom Services subindustry, T-Mobile US's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
T-Mobile US's Current Ratio Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, T-Mobile US's Current Ratio distribution charts can be found below:
* The bar in red indicates where T-Mobile US's Current Ratio falls into.
T-Mobile US Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
T-Mobile US's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
T-Mobile US (NAS:TMUS) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
T-Mobile US Current Ratio Related Terms
Thank you for viewing the detailed overview of T-Mobile US's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, creating T-Mobile us. Following the merger, the firm provided nationwide service in major markets but spottier coverage elsewhere. T-Mobile spent aggressively on low-frequency spectrum, well suited to broad coverage, and has substantially expanded its geographic footprint. This expansion, coupled with aggressive marketing and innovative offerings, produced rapid customer growth. With the Sprint acquisition, the firm's scale now roughly matches its larger rivals: T-Mobile now serves 73 million postpaid and 21 million prepaid phone customers, equal to around 30% of the U.S. retail wireless market. In addition, the firm provides wholesale service to resellers.
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