T-Mobile US Inc (TMUS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,317,000 | 2,590,000 | 3,024,000 | 3,064,000 | 3,468,000 |
| Total assets | US$ in thousands | 207,682,000 | 211,338,000 | 206,563,000 | 200,162,000 | 86,921,000 |
| ROA | 4.00% | 1.23% | 1.46% | 1.53% | 3.99% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $8,317,000K ÷ $207,682,000K
= 4.00%
T-Mobile US Inc's return on assets (ROA) has shown variability over the past five years. ROA for the most recent year, ending on December 31, 2023, stood at 4.00%, marking a significant improvement compared to the previous year's 1.23%. This substantial increase reflects a more efficient utilization of the company's assets to generate profit.
In the five-year period, T-Mobile US Inc's ROA reached its lowest point in 2022 at 1.23%, indicating a temporary decline in asset efficiency. The company's ROA had a slight increase in 2021 to 1.46% before a further increase to 1.53% in 2020. The highest ROA of 3.99% was observed in 2019, showing a strong performance that year.
Overall, T-Mobile US Inc's ROA trend suggests some fluctuations in asset productivity and profitability. The upward trajectory in 2023 signifies a positive development in efficiently generating earnings from its assets, indicating potential improvements in the company's operational performance. Further analysis would be required to understand the factors driving these changes and to assess the sustainability of this upward trend.