T-Mobile US Inc (TMUS)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 34,000 | 115,000 | 172,000 | 178,000 | 183,000 | 130,000 | 98,000 | 113,000 | 129,000 | 1,019,000 | 1,869,000 | 2,749,000 | 3,641,000 | 3,635,000 | 3,688,000 | 3,757,000 | 3,251,000 | 3,476,000 | 2,723,000 | 1,927,000 |
| Interest coverage | 529.71 | 146.99 | 91.30 | 83.52 | 77.96 | 104.10 | 114.47 | 71.98 | 50.72 | 4.77 | 2.76 | 2.39 | 1.89 | 2.07 | 2.31 | 1.93 | 2.04 | 1.77 | 1.83 | 2.89 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $18,010,000K ÷ $34,000K
= 529.71
The interest coverage ratio of T-Mobile US Inc has fluctuated over the reporting periods provided. The ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
From March 31, 2020, to September 30, 2021, the interest coverage ratio ranged between 1.77 and 2.89, displaying moderate coverage. However, from December 31, 2021, to June 30, 2022, there was an improvement in the ratio, reaching levels between 1.89 and 2.76, indicating a slightly improved ability to cover interest obligations.
The ratio significantly rose from September 30, 2022, with a sharp increase to 50.72 by December 31, 2022, signaling a substantial improvement in T-Mobile US Inc's ability to cover interest payments. This trend continued into the following reporting periods, with the interest coverage ratio soaring to 529.71 by December 31, 2024.
Overall, the interest coverage ratio of T-Mobile US Inc shows a notable improvement in its ability to cover interest expenses, particularly from the latter half of 2022 to the end of 2024. This demonstrates a strengthening financial position in managing its debt obligations with its operating income.