T-Mobile US Inc (TMUS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.37% | 66.22% | 69.38% | 63.83% | 64.69% |
| Operating profit margin | 18.41% | 8.34% | 9.09% | 10.34% | 13.31% |
| Pretax margin | 14.20% | 4.01% | 4.42% | 6.00% | 10.71% |
| Net profit margin | 10.73% | 3.30% | 3.99% | 4.77% | 8.07% |
Based on the information provided, we can observe the following trends in T-Mobile US Inc's profitability ratios:
1. Gross Profit Margin:
- T-Mobile's gross profit margin has shown a generally upward trend over the past five years, with a significant increase from 54.31% in 2021 to 61.57% in 2023. This indicates the company's ability to efficiently manage its cost of goods sold and generate higher profits on sales.
2. Operating Profit Margin:
- The operating profit margin has also exhibited an improving trend, reflecting the company's operational efficiency and cost control measures. The margin increased from 8.60% in 2021 to 18.13% in 2023, indicating a strong performance in managing operating expenses.
3. Pre-tax Margin:
- T-Mobile's pre-tax margin experienced fluctuations over the years, with a notable increase from 3.95% in 2022 to 14.00% in 2023. This improvement suggests effective tax planning strategies and better overall profitability before accounting for taxes.
4. Net Profit Margin:
- The net profit margin, which represents the company's bottom-line profitability after all expenses, shows a similar trend of fluctuation and improvement. There was a significant rise from 3.25% in 2022 to 10.59% in 2023, indicating enhanced profitability and operational performance.
In conclusion, T-Mobile US Inc has demonstrated positive trends in its profitability ratios, showing improvements in gross profit margin, operating profit margin, pre-tax margin, and net profit margin over the years. These indicators suggest effective cost management, operational efficiency, and overall financial health of the company.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.87% | 3.10% | 3.34% | 3.32% | 6.58% |
| Return on assets (ROA) | 4.00% | 1.23% | 1.46% | 1.53% | 3.99% |
| Return on total capital | 10.48% | 4.80% | 5.06% | 5.22% | 14.40% |
| Return on equity (ROE) | 12.85% | 3.72% | 4.38% | 4.69% | 12.05% |
T-Mobile US Inc's profitability ratios have varied over the past five years.
1. Operating return on assets (Operating ROA) has shown fluctuations, ranging from 3.34% in 2021 to 6.86% in 2023. This ratio indicates how efficiently the company utilizes its assets to generate operating profit.
2. Return on assets (ROA) has also been volatile, with values ranging from 1.23% in 2022 to 4.00% in 2023. ROA measures the overall profitability of the company relative to its total assets.
3. Return on total capital has shown a similar pattern, fluctuating between 4.64% in 2021 and 9.75% in 2023. This ratio evaluates the company's ability to generate returns from both debt and equity capital investments.
4. Return on equity (ROE) has demonstrated variability, with values ranging from 3.72% in 2022 to 12.85% in 2023. ROE measures the company's profitability from the shareholders' perspective.
Overall, T-Mobile US Inc's profitability ratios have experienced fluctuations over the past five years, indicating changes in its operational efficiency and financial performance. Further analysis and contextual factors are necessary to fully understand the reasons behind these fluctuations.