T-Mobile US Inc (TMUS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 64,715,000 | 69,656,000 | 69,102,000 | 65,344,000 | 28,789,000 |
| ROE | 12.85% | 3.72% | 4.38% | 4.69% | 12.05% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $8,317,000K ÷ $64,715,000K
= 12.85%
The return on equity (ROE) of T-Mobile US Inc has shown fluctuating trends over the past five years. In 2023, the ROE improved significantly to 12.85%, indicating that the company generated $12.85 in net income for every $100 of shareholders' equity. This marks a notable increase from the previous year's ROE of 3.72%.
In comparison to 2021 and 2020, where the ROE was 4.38% and 4.69% respectively, the 2023 performance reflects a stronger profitability and efficiency in utilizing shareholders' equity to generate earnings.
It's worth noting that the ROE was higher in 2019 at 12.05% compared to 2023. However, the recent improvement suggests that T-Mobile US Inc has potentially enhanced its operational performance and profitability levels. Further analysis into the company's financial strategies and operational efficiencies could provide insights into the factors driving this positive ROE trend in 2023.