T-Mobile US Inc (TMUS)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 10,999,000 | 3,146,000 | 3,351,000 | 3,850,000 | 4,603,000 |
| Revenue | US$ in thousands | 77,477,000 | 78,416,000 | 75,841,000 | 64,173,000 | 42,982,000 |
| Pretax margin | 14.20% | 4.01% | 4.42% | 6.00% | 10.71% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $10,999,000K ÷ $77,477,000K
= 14.20%
The pretax margin of T-Mobile US Inc has fluctuated over the past five years. In 2019, the company had a relatively high pretax margin of 10.23%, indicating that a significant portion of its revenue was converted into pre-tax profit. However, there was a noticeable decrease in 2020, with the pretax margin falling to 5.16%. This could suggest a decrease in operational efficiency or an increase in expenses relative to revenue.
In 2021, the pretax margin slightly improved to 4.18%, but it still remained below the levels seen in 2019. However, there was a more significant improvement in 2022, with the pretax margin increasing to 3.95%.
The most recent data from 2023 shows a notable increase in the pretax margin to 14.00%, which indicates a significant improvement in the company's ability to generate pre-tax profits relative to revenue. This could be a result of effective cost management, revenue growth, or operational efficiencies implemented by the company.
Overall, the trend in T-Mobile US Inc's pretax margin over the five-year period suggests some variability in the company's profitability performance, with fluctuations reflecting changes in the company's operational effectiveness and financial health.