Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

T-Mobile US Inc. (NASDAQ:TMUS)

Analysis of Debt

Advanced level

Total Debt (Carrying Amount)

T-Mobile US Inc., balance sheet: debt

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Short-term debt 4,579  25  841  1,612  354 
Short-term financing lease liabilities 1,063  957  —  —  — 
Long-term debt 61,830  10,958  12,124  12,121  21,832 
Long-term debt to affiliates 4,716  13,986  14,582  14,586  5,600 
Long-term financing lease liabilities 1,444  1,346  —  —  — 
Total short-term and long-term debt, including financing lease liabilities (carrying amount) 73,632  27,272  27,547  28,319  27,786 

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14).

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.’s total debt decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Total Debt (Fair Value)

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Dec 31, 2020
Selected Financial Data (US$ in millions)
Senior Unsecured Notes to third parties 32,450 
Senior Notes to affiliates 4,991 
Senior Secured Notes to third parties 40,519 
Incremental Term Loan Facility to affiliates — 
Senior Reset Notes to affiliates — 
Senior Secured Term Loans — 
Vendor financing arrangements and other debt 240 
Financing lease liabilities 2,507 
Total short-term and long-term debt, including financing lease liabilities (fair value) 80,707 
Financial Ratio
Debt, fair value to carrying amount ratio 1.10

Based on: 10-K (filing date: 2021-02-23).

Weighted-average Interest Rate on Debt

Weighted-average effective interest rate on debt: 4.55%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
4.60% 66,546  3,061 
3.30% 2,507  83 
Total 69,053  3,144 
4.55%

Based on: 10-K (filing date: 2021-02-23).

1 US$ in millions

2 Weighted-average interest rate = 100 × 3,144 ÷ 69,053 = 4.55%

Interest Costs Incurred

T-Mobile US Inc., interest costs incurred

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Interest expense 2,730  1,135  1,357  1,671  1,730 
Capitalized interest 440  473  362  136  142 
Interest costs incurred 3,170  1,608  1,719  1,807  1,872 

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14).

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.’s interest expense decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. T-Mobile US Inc.’s capitalized interest increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. T-Mobile US Inc.’s interest costs incurred decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjusted Interest Coverage Ratio

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 3,064  3,468  2,888  4,536  1,460 
Less: Income from discontinued operations, net of tax 320  —  —  —  — 
Add: Income tax expense 786  1,135  1,029  (1,375) 867 
Add: Interest expense 2,730  1,135  1,357  1,671  1,730 
Earnings before interest and tax (EBIT) 6,260  5,738  5,274  4,832  4,057 
 
Interest costs incurred 3,170  1,608  1,719  1,807  1,872 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 2.29 5.06 3.89 2.89 2.35
Adjusted interest coverage ratio (with capitalized interest)2 1.97 3.57 3.07 2.67 2.17

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14).

2020 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 6,260 ÷ 2,730 = 2.29

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 6,260 ÷ 3,170 = 1.97

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.’s adjusted interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.