TMUSNEUTRAL

TMUS Current Ratio Analysis

0.92x

Updated 6h ago·SEC filings & market data

Key Takeaway

The current ratio measures a company’s ability to pay short-term obligations with its short-term assets, and TMUS’s 0.92x means its current liabilities exceed its current assets.

Sector Performance

27th percentile

TMUS

0.92x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

1.09x(Jul 2026)

↓ Declining

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Deep Analysis

The current ratio measures a company’s ability to pay short-term obligations with its short-term assets, and TMUS’s 0.92x means its current liabilities exceed its current assets.

It sits below the sector median of 1.25x, placing it in the 27th percentile among peers, so most rivals have stronger liquidity. The year-over-year change and 8-quarter trend are not available, but the quarter-over-quarter change is -15.6%, dropping from 1.09x to 0.92x. A ratio below 1.0x already signals potential trouble covering near-term debts, and the recent decline adds pressure on that front. For an investor, this combination raises short-term liquidity risk, though it does not by itself confirm a solvency problem. This metric contradicts the overall NEUTRAL verdict because the weak and deteriorating liquidity position leans toward a more cautious assessment.

Frequently Asked Questions

What does the Current Ratio tell investors about TMUS?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are TMUS's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x), TEL (1.88x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.