T-Mobile US Inc (TMUS)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 8,317,000 | 7,780,000 | 6,146,000 | 3,817,000 | 2,590,000 | 1,535,000 | 1,718,000 | 2,804,000 | 3,024,000 | 3,352,000 | 3,914,000 | 3,046,000 | 3,064,000 | 3,065,000 | 2,682,000 | 3,511,000 | 3,468,000 | 3,357,000 | 3,282,000 | 3,125,000 |
| Total stockholders’ equity | US$ in thousands | 64,715,000 | 64,698,000 | 65,750,000 | 66,925,000 | 69,656,000 | 70,150,000 | 70,034,000 | 69,976,000 | 69,102,000 | 68,427,000 | 67,470,000 | 66,377,000 | 65,344,000 | 64,487,000 | 62,996,000 | 28,977,000 | 28,789,000 | 27,771,000 | 26,967,000 | 26,181,000 |
| ROE | 12.85% | 12.03% | 9.35% | 5.70% | 3.72% | 2.19% | 2.45% | 4.01% | 4.38% | 4.90% | 5.80% | 4.59% | 4.69% | 4.75% | 4.26% | 12.12% | 12.05% | 12.09% | 12.17% | 11.94% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $8,317,000K ÷ $64,715,000K
= 12.85%
T-Mobile US Inc's return on equity (ROE) has shown a positive trend over the past eight quarters. ROE measures a company's profitability by assessing how effectively it is utilizing its equity to generate profit.
Starting from Q1 2022, where the ROE was at 4.01%, there has been a consistent increase in ROE performance. By Q4 2023, the ROE had reached 12.85%, reflecting significant improvement. This indicates that T-Mobile US Inc has been more efficient in generating profit relative to its equity investments.
The steady improvement in ROE suggests that the company's management is effectively utilizing shareholder equity to generate earnings. Investors often consider ROE as a key metric to evaluate a company's profitability and efficiency in generating returns for shareholders. T-Mobile US Inc's consistent upward trend in ROE indicates positive financial health and effective management of its resources.