T-Mobile US Inc (TMUS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.00 | 0.00 | 0.00 | 0.34 | 0.00 | 0.00 | 0.32 | 0.32 | 0.30 | 0.32 | 0.32 | 0.32 | 0.33 | 0.32 | 0.33 | 0.31 | 0.30 | 0.34 | 0.13 |
| Debt-to-capital ratio | 0.55 | 0.00 | 0.00 | 0.00 | 0.52 | 0.00 | 0.00 | 0.50 | 0.49 | 0.48 | 0.49 | 0.49 | 0.49 | 0.49 | 0.49 | 0.50 | 0.49 | 0.47 | 0.50 | 0.27 |
| Debt-to-equity ratio | 1.20 | 0.00 | 0.00 | 0.00 | 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 |
| Financial leverage ratio | 3.37 | 3.28 | 3.33 | 3.32 | 3.21 | 3.22 | 3.20 | 3.14 | 3.03 | 3.04 | 2.99 | 3.01 | 2.99 | 2.95 | 3.03 | 3.06 | 3.06 | 2.98 | 2.97 | 3.01 |
The solvency ratios of T-Mobile US Inc reflect its ability to meet its long-term financial obligations. The Debt-to-assets ratio has remained relatively stable over the past few years, ranging from 0.00 to 0.36, indicating that the company's debt level in relation to its assets is well-managed.
The Debt-to-capital ratio, which measures the proportion of debt in the company's capital structure, shows a similar trend to the Debt-to-assets ratio, with values fluctuating between 0.00 and 0.55. This suggests that T-Mobile has maintained a balanced mix of debt and equity in financing its operations.
The Debt-to-equity ratio has shown more volatility, ranging from 0.00 to 1.20. The higher values in some periods indicate that the company relied more heavily on debt financing, potentially increasing financial risk. However, the ratio has also fallen to 0.00 in some quarters, which may indicate periods of deleveraging or efficient use of equity.
The Financial leverage ratio, which provides an overall measure of the company's financial leverage, has generally increased over the years, indicating a higher proportion of debt in the company's capital structure. This could be a concern if not managed effectively, as higher leverage implies higher financial risk.
Overall, while T-Mobile US Inc's solvency ratios show fluctuations, the company has generally maintained a balanced approach to managing its debt levels, with some periods of higher leverage that may warrant closer monitoring for potential financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
T-Mobile US Inc's interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. Looking at the historical trend, the interest coverage ratio fluctuated over the analyzed period.
The interest coverage ratio was relatively stable from March 31, 2020, to June 30, 2021, ranging between 1.77 and 2.89. This indicates that the company's operating income was able to cover its interest expenses adequately during this period.
From September 30, 2021, to December 31, 2022, there was a gradual increase in the interest coverage ratio, reaching exceptionally high levels, surpassing 50 in December 31, 2022, and peaking at over 500 by December 31, 2024. Such a significant increase suggests that T-Mobile US Inc's operating income substantially outpaced its interest expenses during this period.
However, there was a sharp decline in the interest coverage ratio in the following periods from March 31, 2024, to September 30, 2024, dropping from 83.52 to 146.99. This decline may raise concerns about the company's ability to comfortably cover its interest payments with operating income in the short term.
Overall, while T-Mobile US Inc's interest coverage ratio has shown significant fluctuations over the analyzed period, investors and stakeholders may want to closely monitor the sustainability of the company's operating income to ensure it continues to cover interest expenses effectively.