Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

T-Mobile US Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	12,234)	12,234)	12,188)	11,117)	1,930)
Spectrum licenses	96,707)	95,798)	92,606)	82,828)	36,465)
Customer relationships	4,883)	4,883)	4,879)	4,900)	1,104)
Reacquired rights	770)	770)	770)	—)	—)
Tradenames and patents	208)	196)	171)	598)	323)
Favorable spectrum leases	686)	705)	728)	790)	—)
Other	353)	353)	377)	377)	100)
Other intangible assets, gross amount	6,900)	6,907)	6,925)	6,665)	1,527)
Accumulated amortization	(4,282)	(3,399)	(2,192)	(1,367)	(1,412)
Other intangible assets, net amount	2,618)	3,508)	4,733)	5,298)	115)
Intangible assets	99,325)	99,306)	97,339)	88,126)	36,580)
Goodwill and intangible assets	111,559)	111,540)	109,527)	99,243)	38,510)

Based on: 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), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	T-Mobile US Inc. intangible assets increased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	T-Mobile US Inc. goodwill and intangible assets increased from 2021 to 2022 and from 2022 to 2023.

T-Mobile US Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	207,682)	211,338)	206,563)	200,162)	86,921)
Less: Goodwill	12,234)	12,234)	12,188)	11,117)	1,930)
Total assets (adjusted)	195,448)	199,104)	194,375)	189,045)	84,991)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	64,715)	69,656)	69,102)	65,344)	28,789)
Less: Goodwill	12,234)	12,234)	12,188)	11,117)	1,930)
Stockholders’ equity (adjusted)	52,481)	57,422)	56,914)	54,227)	26,859)
Adjustment to Net Income
Net income (as reported)	8,317)	2,590)	3,024)	3,064)	3,468)
Add: Goodwill impairment	—)	—)	—)	218)	—)
Net income (adjusted)	8,317)	2,590)	3,024)	3,282)	3,468)

Based on: 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), 10-K (reporting date: 2019-12-31).

T-Mobile US Inc., Financial Data: Reported vs. Adjusted

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T-Mobile US Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	10.59%	3.25%	3.77%	4.48%	7.71%
Adjusted net profit margin	10.59%	3.25%	3.77%	4.80%	7.71%
Total Asset Turnover
Reported total asset turnover	0.38	0.38	0.39	0.34	0.52
Adjusted total asset turnover	0.40	0.40	0.41	0.36	0.53
Financial Leverage
Reported financial leverage	3.21	3.03	2.99	3.06	3.02
Adjusted financial leverage	3.72	3.47	3.42	3.49	3.16
Return on Equity (ROE)
Reported ROE	12.85%	3.72%	4.38%	4.69%	12.05%
Adjusted ROE	15.85%	4.51%	5.31%	6.05%	12.91%
Return on Assets (ROA)
Reported ROA	4.00%	1.23%	1.46%	1.53%	3.99%
Adjusted ROA	4.26%	1.30%	1.56%	1.74%	4.08%

Based on: 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), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	T-Mobile US Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	T-Mobile US Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	T-Mobile US Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	T-Mobile US Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	T-Mobile US Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

T-Mobile US Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	8,317)	2,590)	3,024)	3,064)	3,468)
Revenues	78,558)	79,571)	80,118)	68,397)	44,998)
Profitability Ratio
Net profit margin¹	10.59%	3.25%	3.77%	4.48%	7.71%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income	8,317)	2,590)	3,024)	3,282)	3,468)
Revenues	78,558)	79,571)	80,118)	68,397)	44,998)
Profitability Ratio
Adjusted net profit margin²	10.59%	3.25%	3.77%	4.80%	7.71%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,317 ÷ 78,558 = 10.59%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 8,317 ÷ 78,558 = 10.59%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	T-Mobile US Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues	78,558)	79,571)	80,118)	68,397)	44,998)
Total assets	207,682)	211,338)	206,563)	200,162)	86,921)
Activity Ratio
Total asset turnover¹	0.38	0.38	0.39	0.34	0.52
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	78,558)	79,571)	80,118)	68,397)	44,998)
Adjusted total assets	195,448)	199,104)	194,375)	189,045)	84,991)
Activity Ratio
Adjusted total asset turnover²	0.40	0.40	0.41	0.36	0.53

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 78,558 ÷ 207,682 = 0.38

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 78,558 ÷ 195,448 = 0.40

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	T-Mobile US Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	207,682)	211,338)	206,563)	200,162)	86,921)
Stockholders’ equity	64,715)	69,656)	69,102)	65,344)	28,789)
Solvency Ratio
Financial leverage¹	3.21	3.03	2.99	3.06	3.02
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	195,448)	199,104)	194,375)	189,045)	84,991)
Adjusted stockholders’ equity	52,481)	57,422)	56,914)	54,227)	26,859)
Solvency Ratio
Adjusted financial leverage²	3.72	3.47	3.42	3.49	3.16

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 207,682 ÷ 64,715 = 3.21

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 195,448 ÷ 52,481 = 3.72

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	T-Mobile US Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	8,317)	2,590)	3,024)	3,064)	3,468)
Stockholders’ equity	64,715)	69,656)	69,102)	65,344)	28,789)
Profitability Ratio
ROE¹	12.85%	3.72%	4.38%	4.69%	12.05%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income	8,317)	2,590)	3,024)	3,282)	3,468)
Adjusted stockholders’ equity	52,481)	57,422)	56,914)	54,227)	26,859)
Profitability Ratio
Adjusted ROE²	15.85%	4.51%	5.31%	6.05%	12.91%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 8,317 ÷ 64,715 = 12.85%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 8,317 ÷ 52,481 = 15.85%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	T-Mobile US Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	8,317)	2,590)	3,024)	3,064)	3,468)
Total assets	207,682)	211,338)	206,563)	200,162)	86,921)
Profitability Ratio
ROA¹	4.00%	1.23%	1.46%	1.53%	3.99%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income	8,317)	2,590)	3,024)	3,282)	3,468)
Adjusted total assets	195,448)	199,104)	194,375)	189,045)	84,991)
Profitability Ratio
Adjusted ROA²	4.26%	1.30%	1.56%	1.74%	4.08%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 8,317 ÷ 207,682 = 4.00%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 8,317 ÷ 195,448 = 4.26%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	T-Mobile US Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

T-Mobile US Inc. (NASDAQ:TMUS)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

T-Mobile US Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

T-Mobile US Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)