T-Mobile US Inc (TMUS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,266,000 | 6,543,000 | 6,892,000 | 6,636,000 | 5,722,000 |
| Long-term debt | US$ in thousands | 71,399,000 | 66,796,000 | 67,076,000 | 61,830,000 | 10,958,000 |
| Total stockholders’ equity | US$ in thousands | 64,715,000 | 69,656,000 | 69,102,000 | 65,344,000 | 28,789,000 |
| Return on total capital | 10.48% | 4.80% | 5.06% | 5.22% | 14.40% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $14,266,000K ÷ ($71,399,000K + $64,715,000K)
= 10.48%
The return on total capital for T-Mobile US Inc has fluctuated over the past five years. The company achieved a return on total capital of 9.75% in 2023, an improvement from the previous year's 5.47%. This indicates that T-Mobile's ability to generate profit from the capital invested has notably increased. Comparing to 2021 and 2020, where the return on total capital was 4.64% and 4.97% respectively, the current performance represents a significant improvement.
However, it is important to note that the return on total capital in 2019 was notably higher at 9.82% compared to the latest figures. This suggests that T-Mobile's performance in 2023, while improved from 2022, is still below the level achieved in 2019.
Overall, the increasing trend in return on total capital over the past two years is a positive sign of T-Mobile US Inc's improving efficiency in generating profits from its total capital base.