T-Mobile US Inc (TMUS)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 18,010,000 | 16,904,000 | 15,704,000 | 14,867,000 | 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 |
| Long-term debt | US$ in thousands | 74,197,000 | — | — | — | 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 |
| Total stockholders’ equity | US$ in thousands | 61,741,000 | 64,250,000 | 62,636,000 | 62,074,000 | 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 |
| Return on total capital | 13.25% | 26.31% | 25.07% | 23.95% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $18,010,000K ÷ ($74,197,000K + $61,741,000K)
= 13.25%
The return on total capital of T-Mobile US Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 13.96% in March 2020, declined to 3.95% in the subsequent quarter, and then gradually increased to 6.39% by June 2021. However, it experienced a slight decrease in the latter part of 2021, ranging between 5.06% and 5.58%. In the first half of 2022, the return on total capital decreased to 3.78% and further dropped to 3.60% by September 2022.
From March 2023 onwards, there was a significant improvement in the return on total capital, with ratios exceeding 10%. Notably, the ratio peaked at 26.31% in September 2024, indicating a strong performance in leveraging total capital to generate returns. The ratio settled at 13.25% by the end of December 2024. Overall, T-Mobile US Inc demonstrated varying levels of efficiency in utilizing its total capital to generate profits throughout the observed period, with notable improvements in the latter half of 2023 and 2024.