T-Mobile US Inc (TMUS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.82% | 68.37% | 66.22% | 69.38% | 63.83% |
| Operating profit margin | 22.45% | 18.41% | 8.34% | 9.09% | 10.34% |
| Pretax margin | 18.34% | 14.20% | 4.01% | 4.42% | 6.00% |
| Net profit margin | 14.14% | 10.73% | 3.30% | 3.99% | 4.77% |
Based on the provided data, T-Mobile US Inc has shown improvements in its profitability ratios over the years:
1. Gross Profit Margin:
- The gross profit margin has generally been increasing from 63.83% in December 2020 to 69.82% in December 2024. This suggests that the company has been able to effectively control its cost of goods sold and/or increase its selling prices relative to its production costs.
2. Operating Profit Margin:
- The operating profit margin fluctuated slightly between 2020 and 2023 but saw a significant increase to 22.45% in December 2024. This indicates that T-Mobile US Inc has been able to better manage its operating expenses and improve operational efficiency.
3. Pretax Margin:
- The pretax margin was relatively low in 2021 and 2022 but showed a notable increase in 2023 and 2024, reaching 18.34%. This signifies that the company has been able to generate higher earnings before taxes relative to its total revenue.
4. Net Profit Margin:
- The net profit margin has shown a similar trend to the other profitability ratios, with a steady increase from 4.77% in 2020 to 14.14% in 2024. This indicates that T-Mobile US Inc has been able to effectively manage its overall expenses and generate higher net income relative to its total revenue.
In conclusion, T-Mobile US Inc has demonstrated improving profitability over the years, as evidenced by the positive trends in its gross profit margin, operating profit margin, pretax margin, and net profit margin. These improvements reflect the company's ability to efficiently manage its costs, increase revenue, and enhance overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.66% | 6.87% | 3.10% | 3.34% | 3.32% |
| Return on assets (ROA) | 5.45% | 4.00% | 1.23% | 1.46% | 1.53% |
| Return on total capital | 13.25% | 10.48% | 4.80% | 5.06% | 5.22% |
| Return on equity (ROE) | 18.37% | 12.85% | 3.72% | 4.38% | 4.69% |
T-Mobile US Inc's profitability ratios demonstrate a positive trend over the five-year period from 2020 to 2024.
1. Operating return on assets (Operating ROA) increased from 3.32% in 2020 to 8.66% in 2024, indicating that the company efficiently generated operating profits from its assets.
2. Return on assets (ROA) also showed improvement, growing from 1.53% in 2020 to 5.45% in 2024, indicating that the company became more effective in generating profits relative to its total assets.
3. Return on total capital increased from 5.22% in 2020 to 13.25% in 2024, signaling that the company effectively utilized its total capital to generate returns for its stakeholders.
4. Return on equity (ROE) experienced substantial growth, rising from 4.69% in 2020 to 18.37% in 2024, suggesting that the company efficiently generated returns for its equity shareholders.
Overall, T-Mobile's profitability ratios reveal a positive trajectory, indicating operational efficiency and effective utilization of assets and capital to generate returns for its stakeholders.