T-Mobile US Inc (TMUS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 77,477,000 | 78,416,000 | 75,841,000 | 64,173,000 | 42,982,000 |
| Property, plant and equipment | US$ in thousands | 40,432,000 | 42,086,000 | 39,803,000 | 41,175,000 | 21,984,000 |
| Fixed asset turnover | 1.92 | 1.86 | 1.91 | 1.56 | 1.96 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $77,477,000K ÷ $40,432,000K
= 1.92
The fixed asset turnover ratio for T-Mobile US Inc has been fluctuating over the past five years. In 2023, the fixed asset turnover ratio was 1.94, showing a slight improvement compared to the previous year's ratio of 1.89. This indicates that the company generated $1.94 in net sales for every dollar invested in fixed assets in 2023.
Looking back further, the ratio was 2.01 in 2021, 1.66 in 2020, and 2.05 in 2019. The highest ratio was recorded in 2019 at 2.05, implying that the company was more efficient in generating revenue from its fixed assets during that period.
Overall, the trend in the fixed asset turnover ratio suggests some variability in how effectively T-Mobile US Inc is utilizing its fixed assets to generate sales. It is important for the company to monitor and analyze this ratio to ensure optimal utilization of their assets and improve operational efficiency.