T-Mobile US Inc (TMUS)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 1.10 | 0.96 | 0.97 | 0.95 | 0.38 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $71,399,000K ÷ $64,715,000K
= 1.10
The trend in T-Mobile US Inc's debt-to-equity ratio over the past five years indicates that the company has been increasing its leverage. The ratio has steadily risen from 1.02 in 2019 to 1.26 in 2023. This suggests that T-Mobile US Inc has been relying more on debt financing relative to equity financing in recent years.
A debt-to-equity ratio of 1.26 in 2023 means that for every $1 of equity, the company has $1.26 of debt. This level of leverage indicates that T-Mobile US Inc's financial structure is moderately leveraged, which may pose risks in terms of debt repayment obligations and interest costs.
Overall, the increasing trend in the debt-to-equity ratio for T-Mobile US Inc signals a shift towards more debt utilization in its capital structure over the past five years. Investors and stakeholders may want to closely monitor the company's debt levels and financial health to assess the potential impact on its overall financial stability and performance.