Stock Analysis on Net

T-Mobile US Inc. (NASDAQ:TMUS)

Analysis of Debt 

Microsoft Excel

Total Debt (Carrying Amount)

T-Mobile US Inc., balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Short-term debt 3,378  4,579  25  841  1,612 
Short-term debt to affiliates 2,245  —  —  —  — 
Short-term financing lease liabilities 1,120  1,063  957  —  — 
Long-term debt 67,076  61,830  10,958  12,124  12,121 
Long-term debt to affiliates 1,494  4,716  13,986  14,582  14,586 
Long-term financing lease liabilities 1,455  1,444  1,346  —  — 
Total short-term and long-term debt, including financing lease liabilities (carrying amount) 76,768  73,632  27,272  27,547  28,319 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Total short-term and long-term debt, including financing lease liabilities (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. T-Mobile US Inc. total debt increased from 2019 to 2020 and from 2020 to 2021.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2021
Selected Financial Data (US$ in millions)
Senior Notes to third parties 32,093 
Senior Notes to affiliates 3,844 
Senior Secured Notes to third parties 42,393 
Incremental Term Loan Facility to affiliates — 
Senior Reset Notes to affiliates — 
Vendor financing arrangements and other debt 47 
Financing lease liabilities 2,575 
Total short-term and long-term debt, including financing lease liabilities (fair value) 80,952 
Financial Ratio
Debt, fair value to carrying amount ratio 1.05

Based on: 10-K (reporting date: 2021-12-31).


Weighted-average Interest Rate on Debt

Weighted-average effective interest rate on debt: 4.05%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
4.10% 74,193  3,042 
2.50% 2,575  64 
Total 76,768  3,106 
4.05%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 3,106 ÷ 76,768 = 4.05%


Interest Costs Incurred

T-Mobile US Inc., interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Interest expense 3,362  2,730  1,135  1,357  1,671 
Capitalized interest 210  440  473  362  136 
Interest costs incurred 3,572  3,170  1,608  1,719  1,807 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. T-Mobile US Inc. interest expense increased from 2019 to 2020 and from 2020 to 2021.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. T-Mobile US Inc. capitalized interest decreased from 2019 to 2020 and from 2020 to 2021.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. T-Mobile US Inc. interest costs incurred increased from 2019 to 2020 and from 2020 to 2021.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 3,024  3,064  3,468  2,888  4,536 
Less: Income from discontinued operations, net of tax —  320  —  —  — 
Add: Income tax expense 327  786  1,135  1,029  (1,375)
Add: Interest expense 3,362  2,730  1,135  1,357  1,671 
Earnings before interest and tax (EBIT) 6,713  6,260  5,738  5,274  4,832 
 
Interest costs incurred 3,572  3,170  1,608  1,719  1,807 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 2.00 2.29 5.06 3.89 2.89
Adjusted interest coverage ratio (with capitalized interest)2 1.88 1.97 3.57 3.07 2.67

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 6,713 ÷ 3,362 = 2.00

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 6,713 ÷ 3,572 = 1.88


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). T-Mobile US Inc. adjusted interest coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021.