Analysis of Property, Plant and Equipment
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- 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
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Property, Plant and Equipment Disclosure
T-Mobile US Inc., balance sheet: property, plant and equipment
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).
- Land
- The value of land decreased steadily from 236 million USD in 2020 to 69 million USD in 2024, indicating a consistent reduction in land holdings or asset reclassification over the five-year period.
- Buildings and equipment
- There was a gradual increase from 4006 million USD in 2020 to a peak of 4659 million USD in 2022, followed by a slight decline to 4377 million USD in 2024. This suggests moderate investment in building and equipment assets with some divestments or depreciation impacts in recent years.
- Wireless communications systems
- This category exhibited a strong upward trend, rising from 49,453 million USD in 2020 to 65,778 million USD in 2024. The consistent growth indicates substantial ongoing investment and expansion in wireless infrastructure.
- Leasehold improvements
- Leasehold improvements increased steadily from 1,879 million USD in 2020 to 2,588 million USD in 2024, reflecting continuous enhancements or upgrades to leased properties.
- Capitalized software
- Capitalized software assets rose significantly from 16,412 million USD in 2020, peaking at 22,573 million USD in 2023, before declining to 18,566 million USD in 2024. The decrease in the last year may point to amortization, impairment, or reduced software capitalization.
- Leased wireless devices
- A marked decline occurred in leased wireless devices, dropping from 6,989 million USD in 2020 to just 145 million USD in 2024. This sharp reduction indicates a strategic shift away from holding leased wireless hardware on the balance sheet or a change in leasing arrangements.
- Construction in progress
- Values for construction in progress fluctuated, starting at 4,595 million USD in 2020, dipping to 3,286 million USD in 2023, and slightly rising again to 3,377 million USD in 2024. This pattern suggests variable timing in capital projects and construction activity levels.
- Property and equipment, gross
- The gross property and equipment increased from 83,570 million USD in 2020 to a peak of 98,913 million USD in 2023, before falling to 94,900 million USD in 2024. The initial growth reflects capital expenditures exceeding disposals, while the recent decrease suggests asset sales or reclassification.
- Accumulated depreciation and amortization
- Accumulated depreciation and amortization steadily increased in magnitude from -42,395 million USD in 2020 to -58,481 million USD in 2023, then slightly decreased to -56,367 million USD in 2024. This trend shows ongoing asset depreciation consistent with asset aging, with the year-end 2024 possibly reflecting disposals or adjustments.
- Property and equipment, net
- Net property and equipment values declined from 41,175 million USD in 2020 to 38,533 million USD in 2024, with a peak of 42,086 million USD in 2022. The net decrease over five years likely results from depreciation and asset dispositions outpacing new capital investment.
Asset Age Ratios (Summary)
T-Mobile US Inc., asset age ratios
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).
- Average Age Ratio (%)
- The average age ratio exhibits a steady upward trend over the analyzed period. It begins at 50.87% at the end of 2020 and rises consistently, reaching 59.44% by the end of 2024. This increase indicates that the company's property, plant, and equipment are aging on average, suggesting that a larger portion of these assets are closer to the end of their useful lives as time progresses.
- Estimated Total Useful Life (in years)
- The estimated total useful life shows some variation during the period. It starts at 7 years in 2020, declines to 6 years in 2021, then increases to 8 years in 2022 and 9 years in 2023, before slightly decreasing to 8 years in 2024. This fluctuation suggests revisions in asset lifespan estimates, possibly due to changes in asset composition, technological updates, or reassessments of asset durability.
- Estimated Age, Time Elapsed Since Purchase (in years)
- The estimated age of the assets increases progressively from 3 years in 2020 and 2021 to 4 years in 2022, and then to 5 years in both 2023 and 2024. This continuous increase is consistent with the passage of time and reflects the aging of the existing asset base without a noted acceleration or deceleration in asset replacement or acquisition.
- Estimated Remaining Life (in years)
- The estimated remaining life fluctuates somewhat, starting at 3 years in 2020 and 2021, then rising to 4 years in 2022 and 2023, before decreasing back to 3 years in 2024. This pattern indicates adjustments in remaining asset usefulness, possibly reflecting updates in maintenance practices, asset condition reassessments, or recent acquisitions of assets with differing lifespan expectations compared to the existing base.
Average Age
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 Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, gross – Land)
= 100 × ÷ ( – ) =
- Gross property and equipment
- The gross value of property and equipment demonstrated a consistent upward trend from 83,570 million USD at the end of 2020 to a peak of 98,913 million USD in 2023. However, there was a slight decline to 94,900 million USD in 2024, indicating a possible reduction or disposal of assets.
- Accumulated depreciation and amortization
- The accumulated depreciation and amortization increased steadily from 42,395 million USD in 2020 to 58,481 million USD in 2023, reflecting continuous aging and usage of assets. In 2024, there was a minor decrease to 56,367 million USD, which may suggest asset retirements or changes in depreciation methods.
- Land holdings
- Land values have steadily decreased over the period, from 236 million USD in 2020 to 69 million USD in 2024. This significant reduction could be indicative of divestment of land assets or reclassification of certain holdings.
- Average age ratio
- The average age ratio of property and equipment exhibited an increasing trend, rising from 50.87% in 2020 to 59.44% in 2024. This suggests the asset base is aging, with a higher proportion of older assets relative to their useful lives by 2024.
- Overall analysis
- The data indicates that the company's property and equipment assets expanded in gross value until 2023 before a slight contraction in 2024. Simultaneously, depreciation grew at a similar pace, resulting in an aging asset base with an increasing average age ratio. The declining land values point to potential strategic decisions affecting long-term asset composition. These patterns collectively suggest a maturing asset portfolio with possible asset optimization occurring in the latest period.
Estimated Total Useful Life
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 Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense relating to property and equipment
= ( – ) ÷ =
- Property and Equipment, Gross
- The gross value of property and equipment exhibited a generally positive trajectory from 2020 through 2023, increasing from $83,570 million to $98,913 million. However, a notable decline occurred in 2024, with the value decreasing to $94,900 million. This pattern suggests ongoing investment or acquisition of assets over the initial years, followed by a reduction in the asset base or disposals in the final year observed.
- Land
- The recorded value of land assets shows a consistent downward trend over the five-year period. Starting at $236 million in 2020, the value declined steadily each year to $69 million in 2024. This could indicate disposal of land holdings or reclassification impacting the reported value of land assets.
- Depreciation Expense Relating to Property and Equipment
- Depreciation expense increased initially, rising from $12,419 million in 2020 to $14,462 million in 2021, before declining in subsequent years to $11,313 million by 2024. This fluctuation suggests changes in the asset base, useful life assumptions, or accelerated depreciation schedules during the period. The decline in depreciation expense despite the growth in asset base up to 2023 may point to longer useful life estimates or changes in asset composition.
- Estimated Total Useful Life
- The estimated useful life of property and equipment varied during the period, starting at 7 years in 2020, decreasing to 6 years in 2021, then increasing to 8 years in 2022, peaking at 9 years in 2023, and slightly reducing to 8 years in 2024. This variability indicates adjustments in management's assumptions regarding asset longevity, potentially reflecting changes in technology, asset quality, or maintenance practices.
Estimated Age, Time Elapsed since Purchase
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 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense relating to property and equipment
= ÷ =
- Accumulated depreciation and amortization
- The accumulated depreciation and amortization increased steadily from 42,395 million USD at the end of 2020 to 58,481 million USD at the end of 2023, indicating consistent depreciation over this period. However, in 2024, there was a slight decline to 56,367 million USD, which may suggest asset disposals, write-downs, or adjustments in accounting estimates.
- Depreciation expense relating to property and equipment
- The depreciation expense rose from 12,419 million USD in 2020 to a peak of 14,462 million USD in 2021, followed by a noticeable decrease to 11,967 million USD in 2022. This lower level remained relatively stable in 2023 and 2024, with expenses recorded at 11,316 million USD and 11,313 million USD, respectively. The initial increase could be related to capital expenditures in prior periods, while the subsequent decline may be attributed to changing asset bases or revisions in depreciation policies.
- Time elapsed since purchase
- The time elapsed since purchase was consistent at 3 years from 2020 to 2021, increasing to 4 years in 2022, and stabilizing at 5 years during 2023 and 2024. This progression reflects the aging of the company's asset base, which can impact depreciation methods and expense levels.
Estimated Remaining Life
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 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense relating to property and equipment
= ( – ) ÷ =
- Property and Equipment, Net
- The net value of property and equipment exhibits a fluctuating trend over the observed period. Starting at $41,175 million at the end of 2020, it decreased to $39,803 million in 2021, followed by an increase to $42,086 million in 2022. Subsequently, it declined again to $40,432 million in 2023 and further dropped to $38,533 million by the end of 2024. Overall, despite intermittent growth periods, the net property and equipment value shows a downward tendency from 2020 to 2024.
- Land
- The value attributed to land assets demonstrates a consistent decline over the five years reported. From $236 million in 2020, the value steadily decreased to $225 million in 2021, then sharply dropped to $109 million in 2022, continuing to $72 million in 2023, and reaching $69 million in 2024. This significant reduction suggests possible disposals or revaluations affecting land holdings.
- Depreciation Expense Relating to Property and Equipment
- Depreciation expenses show notable variability during the period. The expense increased from $12,419 million in 2020 to a peak of $14,462 million in 2021. It then dropped to $11,967 million in 2022, continuing to decline slightly to $11,316 million in 2023 and stabilizing at $11,313 million in 2024. This pattern implies a potential impact of asset base changes or shifts in depreciation policies mid-period.
- Estimated Remaining Life
- The estimated remaining life of property, plant, and equipment remained consistently at 3 years in 2020 and 2021, increased to 4 years for both 2022 and 2023, then reverted to 3 years in 2024. These fluctuations may reflect adjustments in asset age profiles or changes in asset replacement strategies.