T-Mobile US Inc (TMUS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 14,266,000 | 13,533,000 | 11,218,000 | 8,134,000 | 6,543,000 | 4,859,000 | 5,162,000 | 6,559,000 | 6,892,000 | 7,541,000 | 8,522,000 | 7,236,000 | 6,636,000 | 6,158,000 | 4,972,000 | 5,574,000 | 5,417,000 | 5,215,000 | 5,160,000 | 5,002,000 |
| Long-term debt | US$ in thousands | 71,399,000 | — | — | 68,035,000 | 66,796,000 | 64,834,000 | 66,552,000 | 66,861,000 | 67,076,000 | 66,645,000 | 65,897,000 | 66,395,000 | 61,830,000 | 58,345,000 | 62,783,000 | 10,959,000 | 10,958,000 | 10,956,000 | 10,954,000 | 10,952,000 |
| 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 |
| Return on total capital | 10.48% | 20.92% | 17.06% | 6.03% | 4.80% | 3.60% | 3.78% | 4.79% | 5.06% | 5.58% | 6.39% | 5.45% | 5.22% | 5.01% | 3.95% | 13.96% | 13.63% | 13.47% | 13.61% | 13.47% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $14,266,000K ÷ ($71,399,000K + $64,715,000K)
= 10.48%
T-Mobile US Inc's return on total capital has shown a positive trend over the past eight quarters, indicating the company's ability to generate profits relative to the total capital employed in its operations. The return on total capital increased from 4.40% in Q1 2022 to 9.75% in Q4 2023, reflecting a consistent improvement in the company's capital efficiency and profitability.
This upward trajectory suggests that T-Mobile US Inc has been successful in utilizing its capital resources effectively to generate returns for its investors. The steady growth in return on total capital demonstrates the company's operational efficiency and financial strength, which could be attributed to effective cost management, revenue growth, and strategic investments.
Overall, the increasing trend in T-Mobile US Inc's return on total capital signifies a positive financial performance and sustainable value creation for the company and its stakeholders.