T-Mobile US Inc. (NASDAQ:TMUS)

The financial data exhibits several notable trends in the intangible assets of the company over the five-year period under review.

Goodwill

There is a consistent upward trend in goodwill, increasing from $11,117 million in 2020 to $13,005 million in 2024, indicating potential acquisitions or reassessments of acquired assets over this period.

Spectrum licenses

Spectrum licenses show a steady increase from $82,828 million in 2020 to $100,558 million in 2024, reflecting ongoing investments or acquisitions in wireless spectrum assets which are crucial for telecom operations.

Customer relationships

The value of customer relationships remains relatively stable from 2020 through 2023, with a slight decline observed in 2021, and then rises notably to $5,427 million in 2024, suggesting enhanced valuation or expansion of the customer base.

Reacquired rights

Starting from 2021, reacquired rights are recorded consistently at $770 million, indicating a new category of intangible assets acquired or recognized from that year onward.

Tradenames and patents

Tradenames and patents experienced a significant decline from $598 million in 2020 to $171 million in 2021, followed by a gradual increase to $338 million by 2024, possibly reflecting amortization effects or valuation adjustments early in the period with subsequent reinforcement.

Favorable spectrum leases

This category shows a continuous decrease from $790 million in 2020 to $620 million in 2024, indicating either lease expirations or declining valuation of these leases.

Other intangible assets (gross amount)

The gross amount of other intangible assets is fairly stable from 2020 through 2023, ranging between $6,665 million and $6,900 million, before increasing to $7,633 million in 2024.

Accumulated amortization

Accumulated amortization rises substantially over the period, from negative $1,367 million in 2020 to negative $5,121 million in 2024, reflecting ongoing amortization expenses on intangible assets, which contributes to the reduction in net intangible asset values.

Other intangible assets (net amount)

The net amount of other intangible assets declines steadily from $5,298 million in 2020 to $2,512 million in 2024, demonstrating the impact of accumulated amortization exceeding the additional gross intangible assets recorded.

Total intangible assets

The overall intangible assets show a moderate increase, moving from $88,126 million in 2020 to $103,070 million in 2024, reflecting overall growth in intangible asset holdings.

Goodwill and intangible assets combined

The combined figure for goodwill and intangible assets rises from $99,243 million in 2020 to $116,075 million in 2024, indicating a strategic accumulation or valuation increase of intangible resources, potentially strengthening the company's asset base.

The analysis of the financial data over the five-year period reveals several significant trends and shifts relating to assets, equity, and net income, both on a reported and goodwill-adjusted basis.

Total Assets

The reported total assets show a gradual increase from US$200,162 million in 2020 to a peak of US$211,338 million in 2022, followed by a slight decline to US$207,682 million in 2023 and a marginal increase to US$208,035 million in 2024. Adjusted total assets, which exclude goodwill, follow a similar trajectory, rising from US$189,045 million in 2020 to US$199,104 million in 2022 and then falling to US$195,030 million by 2024. This pattern indicates a period of asset growth until 2022, after which assets stabilize at a slightly lower level.

Stockholders’ Equity

Reported stockholders’ equity experienced consistent growth from US$65,344 million in 2020 to US$69,656 million in 2022, but then declined noticeably to US$61,741 million by 2024. Adjusted stockholders' equity portrays a similar trend, increasing to US$57,422 million in 2022 before decreasing to US$48,736 million in 2024. This decline in equity after 2022 could suggest factors such as dividends, share repurchases, asset write-downs, or losses offsetting earnings, which warrants further investigation.

Net Income

Reported net income remained relatively stable around the US$3,000 million mark through 2021, then declined to US$2,590 million in 2022 before experiencing a substantial surge in 2023 and 2024 to US$8,317 million and US$11,339 million, respectively. The adjusted net income follows this pattern exactly, indicating that goodwill adjustments do not affect net income in this data. The sharp increase in net income in the last two years is a notable improvement in profitability, suggesting enhanced operational efficiency, higher revenues, or other positive financial events during this period.

Overall Observations

The overall asset base shows moderate growth with recent stabilization, while stockholders’ equity peaked in 2022 and declined thereafter, possibly reflecting changes in capital structure or accumulated other comprehensive losses. Meanwhile, net income exhibited a pronounced upward trend post-2022, highlighting a positive shift in profitability metrics. The similarity between reported and adjusted figures implies that goodwill has a limited impact on the key profitability metrics during this period.

Net Profit Margin

The reported net profit margin shows a declining trend from 4.48% in 2020 to 3.25% in 2022, followed by a significant increase to 10.59% in 2023 and further to 13.93% in 2024. The adjusted net profit margin mirrors this pattern exactly, indicating consistency between reported and adjusted figures in this metric.

Total Asset Turnover

Reported total asset turnover improved from 0.34 in 2020 to 0.39 in 2021, slightly declined to 0.38 in 2022 and 2023, then rose a bit to 0.39 in 2024. The adjusted total asset turnover consistently remains higher than the reported figures, increasing steadily from 0.36 in 2020 to 0.42 in 2024, demonstrating incremental improvements in asset utilization when adjustments are considered.

Financial Leverage

The reported financial leverage ratio was relatively stable between 3.06 and 3.03 during 2020 to 2022, then increased to 3.21 in 2023 and 3.37 in 2024. Adjusted financial leverage is consistently higher than reported leverage and follows a similar upward trend, rising from 3.49 in 2020 to 4.00 in 2024, indicating increasing reliance on debt or other financing methods after adjustments.

Return on Equity (ROE)

The reported ROE declined gradually from 4.69% in 2020 to 3.72% in 2022, before sharply increasing to 12.85% in 2023 and 18.37% in 2024. The adjusted ROE is higher across all years and shows a similar marked improvement, from 6.05% in 2020 to 4.51% in 2022, then rising substantially to 15.85% in 2023 and 23.27% in 2024, reflecting enhanced shareholder value creation after adjustments.

Return on Assets (ROA)

Reported ROA steadily declined from 1.53% in 2020 to 1.23% in 2022, then increased markedly to 4.00% in 2023 and 5.45% in 2024. Adjusted ROA follows a similar pattern with higher values, decreasing from 1.74% in 2020 to 1.30% in 2022, followed by significant gains to 4.26% in 2023 and 5.81% in 2024, suggesting improved asset efficiency post adjustments.

Overall Observations

The data indicates a period of relative performance decline from 2020 through 2022 across most profitability and efficiency metrics, followed by a strong recovery and improvement in 2023 and 2024. Adjusted figures generally exceed reported ones, highlighting the positive impact of goodwill adjustments on financial metrics. The increasing financial leverage suggests a growing use of debt or financing, which correlates with improved returns on equity and assets in recent years.

The financial data exhibits several notable trends spanning the five-year period ending December 31, 2024.

Net Income Trends

Reported net income shows a slight decline from 3,064 million US dollars in 2020 to 2,590 million US dollars in 2022, indicating a gradual reduction over the initial three years. However, a significant rebound is observed starting in 2023, where net income sharply rises to 8,317 million US dollars, and continues to accelerate in 2024, reaching 11,339 million US dollars. The adjusted net income follows the same pattern, confirming the consistency of these results when goodwill adjustments are accounted for.

Net Profit Margin Trends

The reported net profit margin declines from 4.48% in 2020 to 3.25% in 2022, mirroring the downward trend in net income over the same period. In 2023, the margin experiences a substantial increase to 10.59%, more than tripling from the previous year, and it further improves to 13.93% in 2024. The adjusted net profit margin aligns precisely with the reported margin, reflecting similar profitability trends when excluding goodwill effects.

Overall Insights

The data reveals a period of contraction in both profitability and net income over the three years through 2022, followed by robust recovery and expansion over the last two years analyzed. The sharp rise in 2023 and 2024 suggests either significant improvements in operational efficiency, revenue growth, or a combination of favorable financial factors contributing to enhanced profitability. The identical adjusted figures indicate that goodwill adjustments have minimal impact on the net income and profit margins reported.

Reported Total Assets

The reported total assets exhibited a gradual increase from 200,162 million US dollars at the end of 2020 to a peak of 211,338 million US dollars in 2022. Subsequently, there was a slight decrease in 2023, followed by stabilization in 2024, ending at 208,035 million US dollars. This suggests that asset growth decelerated and leveled off after 2022.

Adjusted Total Assets

Adjusted total assets, which likely account for goodwill and other considerations, followed a similar trend to reported assets but at consistently lower levels. Starting from 189,045 million US dollars in 2020, these assets increased to 199,104 million in 2022 before decreasing to 195,030 million in 2024. The adjustment reflects a consistent reduction in asset base compared to reported figures, likely due to goodwill impairment or related adjustments.

Reported Total Asset Turnover

The reported total asset turnover ratio showed an improvement from 0.34 in 2020 to 0.39 in 2021. After a minor decline to 0.38 in 2022 and 2023, there was a slight recovery to 0.39 in 2024. This indicates a modest improvement in the efficiency of asset utilization over the period, with some fluctuation but overall positive progression.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio consistently exceeded the reported ratio throughout the period, beginning at 0.36 in 2020 and rising steadily to 0.42 by 2024. This upward trend signifies increasing efficiency in generating revenue from adjusted asset bases, potentially reflecting better operational performance when excluding goodwill-related effects.

Total Assets

Reported total assets exhibited a gradual increase from 200,162 million USD in 2020 to a peak of 211,338 million USD in 2022. However, there was a subsequent slight decline in 2023 and stable values in 2024, ending at 208,035 million USD. Adjusted total assets followed a similar trend but were consistently lower than reported values due to adjustments, rising from 189,045 million USD in 2020 to 199,104 million USD in 2022 before marginal declines in 2023 and 2024, closing at 195,030 million USD.

Stockholders’ Equity

Reported stockholders’ equity showed an upward trend from 65,344 million USD in 2020 to 69,656 million USD in 2022, followed by a notable decline thereafter, dropping to 64,715 million USD in 2023 and further to 61,741 million USD in 2024. Adjusted stockholders’ equity mirrored this trajectory but at lower levels due to the removal of goodwill impacts, increasing from 54,227 million USD in 2020 to 57,422 million USD in 2022, then decreasing more sharply to 52,481 million USD in 2023 and 48,736 million USD in 2024.

Financial Leverage

Reported financial leverage ratio showed minor fluctuations around 3.0 from 2020 to 2022. However, from 2022 onwards, the ratio steadily increased, reaching 3.37 in 2024, suggesting an increasing reliance on debt financing relative to equity. The adjusted financial leverage ratio, which excludes goodwill, consistently presented higher leverage levels than the reported figures. It followed a similar upward trend, rising from 3.49 in 2020 to 3.47 in 2022, then sharply increasing to 3.72 in 2023 and further to 4.0 in 2024. This indicates a growing financial risk profile when goodwill is excluded.

Net Income

The reported net income shows a decline from 3,064 million USD in 2020 to 2,590 million USD in 2022, indicating a downward trend over the first three years. However, a significant increase occurs in 2023 and 2024, with net income rising sharply to 8,317 million USD and 11,339 million USD, respectively. The adjusted net income follows the exact same pattern as the reported net income, suggesting that adjustments made do not significantly alter the net income figures.

Stockholders’ Equity

The reported stockholders' equity exhibits a modest increase from 65,344 million USD in 2020 to 69,656 million USD in 2022, followed by a decrease over the subsequent two years to 64,715 million USD in 2023 and further to 61,741 million USD in 2024. The adjusted stockholders' equity, which presumably excludes goodwill, follows a similar pattern but at consistently lower levels, starting at 54,227 million USD in 2020 and decreasing to 48,736 million USD in 2024. The downward trend in equity after 2022 suggests a reduction in net asset value, either through losses, dividends, share repurchases, or goodwill write-downs.

Return on Equity (ROE)

The reported ROE declines steadily from 4.69% in 2020 to 3.72% in 2022, reflecting the decreasing net income relative to equity during that period. A marked improvement occurs in 2023 and 2024, with ROE increasing significantly to 12.85% and 18.37%, respectively, aligning with the rise in net income. The adjusted ROE, which accounts for goodwill, starts higher than reported ROE at 6.05% in 2020 and follows the same decreasing trend until 2022. It then shows a stronger rebound to 15.85% in 2023 and 23.27% in 2024, indicating that excluding goodwill amplifies the perceived profitability on equity. This suggests that goodwill adjustments positively affect the efficiency metrics.

Insights

Overall, the financial data reveals a period of declining earnings and profitability from 2020 through 2022, followed by a substantial recovery and improvement in 2023 and 2024. Equity levels initially increase but then decline, signaling possible balance sheet restructuring or asset write-downs. Adjusted figures excluding goodwill consistently show lower equity but higher returns, which implies that goodwill has a dilutive effect on equity-based performance ratios. The sharp rise in net income and ROE in the final two years signifies strong operational or financial improvements that positively impacted shareholder returns.

Net Income Trends

The reported net income demonstrates a fluctuating trend over the observed period. Initially, it decreased slightly from 3064 million US dollars in 2020 to 2590 million in 2022. However, from 2022 onward, a significant increase is evident, with values rising to 8317 million in 2023 and further to 11339 million in 2024. The adjusted net income values mirror this pattern exactly, indicating no adjustments impacting net income beyond the reported figures.

Total Assets Trends

Reported total assets show a generally stable trend with minor fluctuations. Assets increased moderately from 200162 million US dollars in 2020 to a peak of 211338 million in 2022, followed by a slight decline to 207682 million in 2023 and a marginal increase to 208035 million in 2024. Adjusted total assets follow a similar trend but maintain consistently lower values than reported assets, decreasing from 189045 million in 2020 to 195030 million in 2024 after peaking at 199104 million in 2022. This suggests that adjustments, likely related to goodwill, reduce the asset base but maintain a stable trajectory over time.

Return on Assets (ROA) Patterns

The reported ROA percentage exhibits a downward trend from 1.53% in 2020 to 1.23% in 2022, indicating a decline in asset utilization efficiency during this period. However, a notable recovery occurs thereafter, with ROA rising significantly to 4.00% in 2023 and 5.45% in 2024. Adjusted ROA follows a similar but slightly higher trajectory, starting at 1.74% in 2020 and reaching 5.81% by 2024. The consistent gap where adjusted ROA exceeds reported ROA implies that asset adjustments, likely the removal of goodwill, present a more favorable depiction of asset efficiency.

Overall Insights

The data suggests the company experienced a period of earnings decline and reduced asset efficiency up to 2022, followed by substantial improvements in both profitability and asset utilization through 2023 and 2024. The alignment between reported and adjusted net income highlights that earnings figures are unaffected by asset adjustments, whereas asset values and ROA metrics are notably influenced by goodwill adjustments. This pattern reflects enhanced operating performance and potentially more conservative asset valuation practices in recent years.