T-Mobile US Inc (TMUS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 11,339,000 | 8,317,000 | 2,590,000 | 3,024,000 | 3,064,000 |
| Total stockholders’ equity | US$ in thousands | 61,741,000 | 64,715,000 | 69,656,000 | 69,102,000 | 65,344,000 |
| ROE | 18.37% | 12.85% | 3.72% | 4.38% | 4.69% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $11,339,000K ÷ $61,741,000K
= 18.37%
Based on the provided data, T-Mobile US Inc's return on equity (ROE) has exhibited some variability over the years. In 2020, the ROE stood at 4.69%, showing a marginal decrease to 4.38% by the end of 2021. Subsequently, there was a further decline to 3.72% as of December 31, 2022, indicating a potential challenge in generating profits relative to shareholders' equity.
However, there was a significant improvement in the company's ROE in 2023, surging to 12.85%, which could suggest better utilization of equity to generate returns. This trend continued into 2024, where the ROE notably increased to 18.37%, signifying a substantial growth in profitability relative to the shareholders' equity invested in the company.
Overall, the fluctuating ROE figures for T-Mobile US Inc indicate varying levels of profitability and efficiency in utilizing equity over the years, with a significant improvement in 2023 and 2024 showcasing the potential for enhanced returns on shareholder investment.