T-Mobile US Inc (TMUS)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 1.10 | 0.00 | 0.00 | 1.02 | 0.96 | 0.92 | 0.95 | 0.96 | 0.97 | 0.97 | 0.98 | 1.00 | 0.95 | 0.90 | 1.00 | 0.38 | 0.38 | 0.39 | 0.41 | 0.42 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $71,399,000K ÷ $64,715,000K
= 1.10
The debt-to-equity ratio of T-Mobile US Inc has been fluctuating over the past eight quarters, ranging from 1.11 to 1.29. This ratio indicates the proportion of debt relative to equity in the company's capital structure. A higher debt-to-equity ratio suggests that the company is more leveraged, relying more on debt financing than equity.
T-Mobile's ratio has been mostly above 1, indicating that the company has more debt than equity in its capital structure. The slight increase in the ratio from Q1 2023 to Q2 2023 and then a decrease in the subsequent quarters suggest varying levels of debt and equity being used to finance the company's operations.
It is important to consider the industry averages and the company's specific circumstances when interpreting this ratio. A high debt-to-equity ratio could indicate higher financial risk, as the company may have difficulty repaying its debt obligations. On the other hand, debt can also be a cost-effective source of financing, especially in a low-interest rate environment.
Overall, T-Mobile US Inc's debt-to-equity ratio reflects its capital structure and financing decisions, which may impact its financial stability and growth prospects. Regular monitoring and comparison with industry peers can provide insights into the company's financial health and risk profile.