T-Mobile US Inc (TMUS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 18,010,000 | 14,266,000 | 6,543,000 | 6,892,000 | 6,636,000 |
| Long-term debt | US$ in thousands | 74,197,000 | 71,399,000 | 66,796,000 | 67,076,000 | 61,830,000 |
| Total stockholders’ equity | US$ in thousands | 61,741,000 | 64,715,000 | 69,656,000 | 69,102,000 | 65,344,000 |
| Return on total capital | 13.25% | 10.48% | 4.80% | 5.06% | 5.22% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $18,010,000K ÷ ($74,197,000K + $61,741,000K)
= 13.25%
The return on total capital for T-Mobile US Inc has shown fluctuations over the past five years. Starting at 5.22% in December 2020, it slightly decreased to 5.06% by December 2021 before further declining to 4.80% by December 2022. However, there was a significant improvement in December 2023, with the return on total capital jumping to 10.48% and experiencing a notable increase to 13.25% by December 2024. This upward trend indicates that the company's ability to generate profits relative to its total capital employed improved substantially in the later years of the period under review. Such an increase can potentially signify improved operational efficiency or strategic capital allocation decisions by T-Mobile US Inc during these years.