Analysis of Debt
Paying user area
Try for free
T-Mobile US Inc. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2013
- Current Ratio since 2013
- Price to Book Value (P/BV) since 2013
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to T-Mobile US Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Total Debt (Carrying Amount)
T-Mobile US Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Short-term debt
- Short-term debt experienced fluctuations during the observed period. It decreased significantly from 4,579 million USD in 2020 to 3,378 million USD in 2021, then increased to 5,164 million USD in 2022. Subsequently, it declined again to 3,619 million USD in 2023 before rising to 4,068 million USD in 2024. This pattern indicates variable short-term borrowing requirements or repayment schedules year over year.
- Short-term debt to affiliates
- Data on short-term debt to affiliates is only available for 2021, totaling 2,245 million USD. The absence of reported values for other years suggests either a discontinuation of this type of borrowing or a change in reporting practices.
- Short-term financing lease liabilities
- Short-term financing lease liabilities showed a gradual increase from 1,063 million USD in 2020 to a peak of 1,260 million USD in 2023, followed by a slight decline to 1,175 million USD in 2024. This indicates a relatively stable but slightly upward trend in short-term lease obligations over the period.
- Long-term debt
- Long-term debt increased overall throughout the period, starting at 61,830 million USD in 2020 and rising to 72,700 million USD by 2024. Despite a minor dip in 2022 to 65,301 million USD from 67,076 million USD in 2021, the general direction is upward, reflecting a growing reliance on long-term borrowing.
- Long-term debt to affiliates
- Long-term debt to affiliates significantly decreased from 4,716 million USD in 2020 to 1,494 million USD in 2021 and remained almost constant around that level through 2024. This suggests a marked reduction in affiliated long-term borrowing after 2020 and stable maintenance of these obligations afterward.
- Long-term financing lease liabilities
- Long-term financing lease liabilities steadily declined from 1,444 million USD in 2020 to 1,151 million USD in 2024. This downward trend indicates ongoing reduction in lease-related long-term liabilities.
- Total debt including financing lease liabilities
- The total debt, combining short-term and long-term components including financing lease liabilities, increased overall from 73,632 million USD in 2020 to 80,591 million USD in 2024. There was a slight decrease in 2022 to 74,491 million USD from 76,768 million USD in 2021, but the total debt resumed an upward trajectory subsequently. The pattern shows an incremental growth in total indebtedness across the years.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Senior Notes to third parties | |
| Senior Notes to third parties, EUR-denominated | |
| Senior Notes to affiliates | |
| Senior Secured Notes to third parties | |
| ABS Notes to third parties | |
| Other debt | |
| Financing lease liabilities | |
| Total short-term and long-term debt, including financing lease liabilities (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt and financing lease liabilities:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
T-Mobile US Inc., interest costs incurred
US$ in millions
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense, net | |||||||||||
| Capitalized interest | |||||||||||
| Interest costs incurred |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Interest Expense, Net
- The interest expense, net, increased steadily from 2,701 million US dollars in 2020 to 3,342 million in 2021, marking a significant rise. It then showed a marginal increase to 3,364 million in 2022. For 2023, there was a slight decline to 3,335 million, followed by an increase to 3,411 million in 2024. Overall, the trend reflects a consistent upward movement with minor fluctuations in the later years.
- Capitalized Interest
- Capitalized interest exhibited a notable downward trend over the period. It started at 440 million US dollars in 2020, then decreased sharply to 210 million in 2021, continuing to fall to 61 million in 2022. There was a small recovery to 104 million in 2023 but then declined again to 34 million in 2024. This pattern indicates a consistent reduction in capitalized interest costs.
- Interest Costs Incurred
- Total interest costs incurred increased from 3,141 million US dollars in 2020 to a peak of 3,552 million in 2021. Subsequently, the figure declined to 3,425 million in 2022, followed by a minor increase to 3,439 million in 2023, and a slight rise to 3,445 million in 2024. The data reflects an initial sharp increase followed by stable but slightly decreasing values in the more recent years.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =
- Interest Coverage Ratio (without capitalized interest)
- The interest coverage ratio demonstrated a declining trend from 2.31 in 2020 to 1.94 in 2022, indicating a gradual decrease in the ability to cover interest expenses with operating earnings during this period. However, a notable improvement occurred from 2022 onwards, with the ratio rising significantly to 4.3 in 2023 and further to 5.31 in 2024. This upward shift suggests enhanced financial stability and improved capacity to meet interest obligations in recent years.
- Adjusted Interest Coverage Ratio (with capitalized interest)
- The adjusted interest coverage ratio followed a similar pattern to the unadjusted ratio. From 2020 to 2022, the ratio experienced a slight decline, moving from 1.98 to 1.9, indicating relatively stable but modest coverage of interest expenses when accounting for capitalized interest. Starting in 2023, the ratio increased notably to 4.17 and then to 5.26 in 2024, reflecting a substantial strengthening of interest coverage when capitalized interest is included. This alignment with the unadjusted ratio's improvement reinforces the positive trend in the company’s ability to service its debt over the latest periods.
- Overall Analysis
- Both interest coverage ratios reveal a period of marginal weakening in the early years covered, followed by a significant recovery in the last two years. The consistency between the adjusted and unadjusted ratios highlights a genuine enhancement in earnings relative to interest costs, regardless of accounting for capitalized interest. Such improvement could be indicative of increased profitability, more efficient expense management, or favorable changes in debt structure or interest rates, resulting in stronger financial resilience and lower risk of default on interest payments.