T-Mobile US Inc (TMUS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 14,266,000 | 13,533,000 | 11,218,000 | 8,134,000 | 6,543,000 | 4,859,000 | 5,162,000 | 6,559,000 | 6,892,000 | 7,541,000 | 8,522,000 | 7,236,000 | 6,636,000 | 6,158,000 | 5,064,000 | 5,785,000 | 5,722,000 | 5,625,000 | 5,594,000 | 5,503,000 |
| Total assets | US$ in thousands | 207,682,000 | 208,579,000 | 210,602,000 | 210,173,000 | 211,338,000 | 213,499,000 | 209,463,000 | 210,653,000 | 206,563,000 | 202,125,000 | 204,124,000 | 203,332,000 | 200,162,000 | 192,443,000 | 187,199,000 | 87,226,000 | 86,921,000 | 86,109,000 | 84,788,000 | 83,073,000 |
| Operating ROA | 6.87% | 6.49% | 5.33% | 3.87% | 3.10% | 2.28% | 2.46% | 3.11% | 3.34% | 3.73% | 4.17% | 3.56% | 3.32% | 3.20% | 2.71% | 6.63% | 6.58% | 6.53% | 6.60% | 6.62% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $14,266,000K ÷ $207,682,000K
= 6.87%
Operating Return on Assets (Operating ROA) is a key financial ratio that provides insight into a company's efficiency in generating profits from its asset base. For T-Mobile US Inc, the operating ROA has shown a positive trend over the past eight quarters, indicating an improving operational performance.
In Q4 2022, T-Mobile US Inc had an operating ROA of 3.84%, which increased steadily to reach 6.86% in Q4 2023. This consistent growth in operating ROA demonstrates the company's ability to enhance its profitability relative to its asset base over time.
The gradual increase in operating ROA can be attributed to effective management of assets and operations, which have resulted in higher operating income generated from the company's assets. This indicates that T-Mobile US Inc has been utilizing its assets efficiently to drive revenue and profitability.
Overall, the improving trend in T-Mobile US Inc's operating ROA reflects the company's strengthened operational efficiency and profitability, signaling positive prospects for future financial performance.