T-Mobile US Inc. (NASDAQ:TMUS)

Return on Assets (ROA)

The Return on Assets exhibited variability over the analyzed periods, beginning at 1.5% and generally declining through 2021 and early 2022, reaching a low point near 0.72%. However, from late 2022 onward, the ROA demonstrated a consistent upward trend, eventually reaching its highest recorded values above 5% in late 2024 and early 2025. This suggests improving efficiency in asset utilization over time, particularly in the latter half of the observed timeframe.

Financial Leverage

Financial leverage ratios remained relatively stable, fluctuating narrowly between approximately 2.95 and 3.59. The modest increases observed towards the end of the period indicate a slight rise in the use of debt relative to equity. Despite these fluctuations, leverage persisted close to the 3.0 mark, suggesting moderate and consistent leverage management throughout the evaluated periods.

Return on Equity (ROE)

Return on Equity demonstrated significant growth across the periods. After a moderate starting point around 4.59%, ROE experienced a decline during the first half of the reported data, bottoming near 2.19% in late 2022. Subsequently, a marked and continuous increase occurred, with ROE values rising sharply to approximately 19.99% by mid-2025. This improvement indicates enhanced profitability attributable to shareholders' equity, reflecting positively on management’s ability to generate returns despite a relatively stable leverage environment.

Net Profit Margin

Over the observed periods, the net profit margin exhibits a fluctuating trend initially, with values ranging between approximately 1.9% and 4.9% from early 2021 through late 2022. Starting in early 2023, however, there is a noticeable and sustained upward trajectory, with margins increasing significantly to reach above 14% by late 2024. A slight decrease is observed by the third quarter of 2025, but the margin remains substantially higher than in earlier periods, indicating improved profitability.

Asset Turnover

Asset turnover remains relatively stable throughout the entire period, fluctuating narrowly between 0.37 and 0.40. There is no significant trend of increase or decrease, suggesting the company maintains a consistent level of efficiency in using its assets to generate revenue over time.

Financial Leverage

Financial leverage ratios have shown modest fluctuations but with a general upward tendency across the timeline. Starting from just above 3.0 in early 2021, the leverage ratio gradually increases to reach levels around 3.5 by the end of the observed period. This indicates a gradual increase in the use of debt relative to equity to finance assets, potentially signaling a more aggressive capital structure or strategic financing decisions.

Return on Equity (ROE)

ROE mirrors the pattern observed in net profit margin with initial variability followed by a marked increase beginning in early 2023. Early period returns range from approximately 2.2% to 5.8%. From 2023 onward, the ROE climbs consistently, peaking near 20% in the later quarters of 2024 and maintaining levels close to that through 2025. This strongly suggests enhanced overall profitability and efficient use of shareholders' equity, likely driven by improved margins and stable asset turnover.

Tax Burden

The tax burden ratio exhibited some fluctuations over the observed periods. Initially, it ranged roughly between 0.8 and 0.9 through the early quarters, reaching a peak above 1.0 in mid to late 2022, suggesting temporary tax-related variances. From early 2023 onward, the ratio stabilized near 0.76 to 0.77, indicating a consistent tax expense relative to pre-tax income in the most recent quarters.

Interest Burden

The interest burden ratio showed a declining trend from 0.54 in the first quarter of 2021 to a low of 0.3 in late 2022, implying a reduction in interest expenses relative to EBIT. Subsequently, this ratio improved steadily, reaching about 0.82 by 2025, signaling a growing retention of earnings before taxes after interest costs. This suggests improving operational interest expense efficiency or changes in financing structure.

EBIT Margin

The EBIT margin percentage presented notable variability. It started near 9%, dipped to around 6% during mid-2022, but demonstrated strong improvement afterward. From 2023 onward, EBIT margin showed robust growth, peaking above 23% before stabilizing slightly above 22% in the latest quarters. This positive trend reflects enhanced operational profitability and margin expansion over time.

Asset Turnover

Asset turnover remained largely stable throughout the observed periods, fluctuating marginally around 0.38 to 0.4. This consistency indicates a steady efficiency in utilizing assets to generate revenue, without significant operational scale shifts or asset base changes impacting turnover rates.

Financial Leverage

Financial leverage ratios were relatively steady, near a range of 3.0 to 3.1 in the early periods, before gradually increasing to approximately 3.5 to 3.6 by 2025. This gradual increase suggests a modest rise in the use of debt relative to equity, amplifying equity exposure to both profit and risk, which complements improved profitability metrics seen in later periods.

Return on Equity (ROE)

ROE showed a notable upward trajectory beginning around 4.6% in early 2021 and climbing steadily to peaks near 20% from 2024 onward. Early declines correlated with lower EBIT margin and interest burden challenges, but the subsequent rise was supported by improving EBIT margins and the increased use of financial leverage. The growth in ROE points to enhanced effectiveness in generating shareholder returns as operational and financial conditions strengthened.

Net Profit Margin

The net profit margin exhibited fluctuations in the early periods, initially rising from 3.95% at the first quarter of 2021 to a peak of 4.93% by mid-2021, before declining to a low point of 1.92% in the third quarter of 2022. Subsequently, a consistent upward trend was observed from late 2022 onwards, reaching a high of 14.53% in mid-2025, with a slight decrease to 13.83% by the third quarter of 2025. This overall progression reflects improved profitability over the assessed time frame.

Asset Turnover

Asset turnover remained largely stable throughout the period, showing values close to 0.38 ratio with minor fluctuations between 0.37 and 0.40. The slight gradual increase toward the latter quarters, reaching 0.40 by the last recorded quarter of 2025, indicates consistent efficiency in utilizing assets to generate revenue without significant volatility.

Return on Assets (ROA)

The return on assets mirrored the trends in net profit margin, demonstrating initial volatility with a peak of 1.92% in mid-2021 followed by a decline to 0.72% in the third quarter of 2022. From the fourth quarter of 2022 onwards, the ROA showed a progressive increase, rising steadily and culminating at 5.74% in the third quarter of 2025, before a marginal decrease to 5.47%. This upward movement indicates enhanced overall asset profitability and effective management performance in generating returns.

Tax Burden

The tax burden ratio showed moderate fluctuations over the observed periods. It started at 0.81 and slightly decreased to 0.8 by early 2023, after experiencing some increases above 1.0 in mid-2022. From 2023 onward, the ratio stabilized around 0.76 to 0.77, indicating a consistent tax impact on pre-tax income during the latter periods.

Interest Burden

The interest burden ratio demonstrated a U-shaped trend. Initially decreasing from 0.54 in early 2021 to a low of 0.3 in late 2022, it then increased steadily to approximately 0.81-0.82 from 2024 through mid-2025. This suggests a reduction in interest expenses relative to operating income followed by a rise, potentially reflecting changes in financing costs or capital structure.

EBIT Margin

The EBIT margin exhibited a strong upward trend. Starting at 9.13% in early 2021, it slightly fluctuated around 6-8% during 2021 and 2022. From 2023 onward, a marked improvement was observed, reaching a peak near 23% in late 2024 and early 2025 before a minor dip to 22.23%. This indicates enhanced operational profitability over time.

Asset Turnover

Asset turnover remained relatively stable throughout the periods, fluctuating narrowly around 0.38 to 0.4. This stability suggests consistent efficiency in using assets to generate sales, with no significant change in asset utilization capacity.

Return on Assets (ROA)

The ROA followed a pattern similar to the EBIT margin but with lower values, reflecting the combined effects of profitability and leverage. It decreased from 1.5% to a trough below 1% during 2022 but then improved steadily, reaching over 5.7% in late 2024 and early 2025. This trend indicates increasing overall profitability relative to assets, coinciding with improved operating margins.

The analysis of the quarterly financial ratios reveals several noteworthy trends over the examined periods. The tax burden ratio shows some fluctuations initially, peaking above 1.0 in mid-2022, which indicates a temporary period of taxes exceeding pre-tax income, but generally trends downward and stabilizes around 0.76 to 0.77 in the most recent quarters, suggesting improved tax efficiency or favorable tax conditions.

The interest burden ratio exhibits a significant decline from 0.54 to as low as 0.30 between early 2021 and late 2022, implying a period where interest expenses had a substantial impact on earnings. However, from late 2022 onward, there is a steady increase reaching approximately 0.81 to 0.82 by mid-2025, reflecting a reduction in the relative burden of interest expenses on operating income and possible improvements in debt management or lower interest costs.

The EBIT margin percentage displays a strong positive trend overall. Beginning at around 9.13% in early 2021, it dips slightly midway through 2022 but then accelerates substantially, reaching peaks above 22% from early 2024 onwards before a modest decline to about 22.23% near mid-2025. This indicates enhanced operating profitability, possibly driven by improved operational efficiency or revenue growth outpacing cost increases.

The net profit margin follows a pattern similar to the EBIT margin, starting at a modest 3.95% in early 2021, experiencing a low point below 2.0% in mid to late 2022, but then showing robust recovery and growth. The margin rises sharply from late 2022, peaking at approximately 14.53% by late 2024 before a slight fall to about 13.83% in mid-2025. This trend points to improved overall profitability, likely influenced by higher operating margins and better control over tax and interest expenses.

Tax Burden

Initial volatility with ratios going over 1.0 in 2022, followed by stabilization around 0.76 to 0.77, indicating improved tax efficiency.

Interest Burden

Declined substantially until late 2022, reflecting a high interest expense impact; then improved steadily to over 0.8 by mid-2025, showing reduction in interest expense impact.

EBIT Margin

Modest start with a dip around mid-2022, followed by a strong upward trend peaking above 22%, signaling enhanced operational profitability.

Net Profit Margin

Low starting levels and a trough in late 2022, followed by rapid growth to near 15%, demonstrating improved bottom-line profitability and financial health.