T-Mobile US Inc. (NASDAQ:TMUS)

The financial data presents key performance ratios of the company over multiple quarters, highlighting trends in profitability and capital structure.

Return on Assets (ROA)

The ROA demonstrates an overall upward trend from the first recorded value in March 31, 2020, at 1.53%, gradually increasing to 5.74% by June 30, 2025. Initial fluctuations were observed between 2020 and early 2022, including a decline from 1.46% in March 2022 to a low of 0.72% in December 2022. However, from late 2022 forward, there was a consistent and notable improvement, reflecting enhanced efficiency in asset utilization and profitability generation. The steady increase in ROA suggests a strengthening operational performance over time.

Financial Leverage

Financial leverage has remained relatively stable across the examined quarters, with values oscillating narrowly around the 3.0 mark. The ratio started at 3.01 in March 2020 and exhibited minor fluctuations, reaching a peak of 3.51 in June 2025. This slight increase indicates a modest rise in the extent of the company's reliance on debt financing relative to equity over the period. Despite this, the overall financial leverage suggests the company has maintained a consistent capital structure without significant shifts in risk profile associated with leverage.

Return on Equity (ROE)

The ROE figures reveal strong growth, starting from 4.69% in March 2020 and rising substantially to 19.99% by June 2025. There were some fluctuations during the early periods, including a dip to 2.19% in December 2022, mirroring the patterns seen in ROA. Post-2022, the ROE showed a significant upward trajectory, reflecting increased profitability attributable to shareholders. The amplification of ROE relative to ROA, alongside stable financial leverage, indicates effective use of equity and operational gains driving enhanced returns for investors.

The financial data exhibits several notable trends over the analyzed periods. Net profit margin shows a general upward trajectory starting from low single digits in 2020 to a peak above 14% by early 2025. This increase indicates improved profitability over time, with some fluctuations observed in mid-2022 where margins dipped before trending upward again.

Asset turnover has remained relatively stable across the quarters, fluctuating narrowly around 0.38 to 0.40. This consistency suggests steady efficiency in using assets to generate revenue without significant deterioration or improvement throughout the period.

Financial leverage ratios demonstrate slight variability but show a gradual increasing trend from approximately 3.0 in 2020 to around 3.5 by mid-2025. The incremental rise points to a marginally higher use of debt financing relative to equity over time, which can impact risk profile and return dynamics.

Return on equity (ROE) mirrors the net profit margin pattern, showing growth from low levels in 2020 to almost 20% in early 2025. This substantial improvement reflects enhanced profitability combined with stable asset turnover and increasing leverage, contributing positively to equity returns.

Profitability

Net profit margin improved significantly, indicating better operational efficiency or favorable market conditions leading to higher retained profits relative to sales.

Operational Efficiency

Stable asset turnover suggests consistent asset management practices, with the company sustaining its ability to generate revenue from its asset base.

Capital Structure

Rising financial leverage conveys an increasing debt component, which may amplify returns but could also heighten financial risk.

Overall Return

ROE growth reflects the combined effects of higher profitability and leverage, indicating enhanced value creation for shareholders over the analysis period.

Tax Burden

The tax burden ratio exhibits variation starting from a value near 0.8 in early 2021, increasing to above 1.02 by late 2022, indicating a temporary increase in tax relative to earnings. Subsequently, it declines and stabilizes around 0.76-0.77 from early 2023 through mid-2025, reflecting a reduced effective tax impact on profitability during this later period.

Interest Burden

The interest burden ratio shows a declining trend from 0.59 in early 2021 to a low near 0.30 by late 2021, suggesting a reduction in interest costs relative to operating income. However, from early 2022 onward, this ratio rises steadily, reaching approximately 0.82 by mid-2025, indicating increasing interest expense pressure or reduced operational profitability affecting the interest coverage.

EBIT Margin

EBIT margin presents a clear upward trajectory starting from around 9% in the first quarter of 2021. The margin dips slightly near mid-2021 but then progressively improves, reaching above 23% by early 2025. This trend signifies enhanced operating efficiency and profitability over the observed periods.

Asset Turnover

Asset turnover remains relatively stable over the entire timeline, fluctuating narrowly between 0.34 and 0.40. This consistent performance suggests steady utilization of assets in generating revenue without significant improvement or deterioration in asset efficiency.

Financial Leverage

Financial leverage ratios hover around 3.0 during the initial periods, with a slight increasing trend observed from early 2023 onwards. The ratio reaches approximately 3.48 by mid-2025, indicating gradually increased reliance on debt financing or equity magnification over time.

Return on Equity (ROE)

Return on equity exhibits a marked improvement from roughly 4.7% in early 2021 to approximately 20% by mid-2025. This substantial increase aligns with improved EBIT margins and increased leverage, pointing to enhanced shareholder value generation driven by higher profitability and financial leverage effects.

The analysis of the quarterly financial ratios reveals several notable trends across the reported periods.

Net Profit Margin

The net profit margin data starts from the first quarter of 2020 without values initially and then shows a positive presence beginning in the first quarter of 2021. The margin exhibits slight fluctuations during 2021, generally ranging between approximately 3.5% and 5%. However, from the first quarter of 2022, a downward trend is observed, with margins declining to as low as around 1.9% toward the end of 2022. A significant recovery and improvement occur starting from early 2023, with the margin rising steadily through 2023 and into 2024, eventually reaching a peak above 14% by the second quarter of 2025. This represents a strong upward trajectory reflecting enhanced profitability over time.

Asset Turnover

Asset turnover ratios begin to be reported in early 2021, maintaining a relatively stable trend throughout the entire timeframe. The ratio generally fluctuates narrowly around 0.38 to 0.40, indicating consistent efficiency in the utilization of assets to generate revenue. There are no significant upward or downward trends, suggesting stable operational performance in terms of asset use.

Return on Assets (ROA)

The return on assets also shows an initially low and somewhat inconsistent pattern from early 2021 through late 2022, with ROA dipping below 1% in certain quarters. Starting in 2023, a marked and sustained growth trajectory is visible, with ROA increasing significantly and following a similar upward pace to the net profit margin. ROA climbs from around 1.23% in early 2023 to approximately 5.7% by mid-2025, underscoring improved overall asset profitability and operational effectiveness.

In summary, the net profit margin and ROA demonstrate strong growth and recovery from a period of subdued performance, highlighting enhanced profitability and asset returns in recent years. At the same time, the asset turnover ratio remains stable, indicating steady asset usage efficiency. Together, these patterns reflect improving financial health and operational effectiveness over the course of the observed periods.

The financial data reveals several significant trends for the periods analyzed. The Tax Burden ratio shows an initial stability around the 0.8 level, followed by an increase past 1.0 in late 2022, before declining steadily to approximately 0.77 by mid-2025. This pattern suggests some fluctuations in tax impacts on earnings, but a recent trend towards a stable and moderate tax burden relative to pre-tax income.

The Interest Burden ratio exhibits a decreasing trend from early 2021, dropping sharply from 0.59 to a low near 0.3 by the end of 2021. Subsequently, a notable recovery occurs, with the ratio climbing steadily to 0.82 by mid-2025. This indicates an initial decrease in income available after interest expense, but a strong improvement over time, implying reduced interest costs or improved operating income relative to interest obligations.

Examining the EBIT Margin presents a marked improvement across the periods. Starting around 9% in early 2020, margins experienced a decline in 2021 to near 6%, then a pronounced and continuous increase afterward. By mid-2025, the EBIT Margin reaches over 23%, reflecting substantial operational profitability gains. This consistent margin improvement points to enhanced cost management and/or revenue growth efficiency.

The Asset Turnover ratio remains relatively stable throughout the periods, fluctuating narrowly between 0.34 and 0.40. This suggests a consistent efficiency in utilizing assets to generate revenue, with no significant improvements or deteriorations observed.

The Return on Assets (ROA) mirrors the positive trend in EBIT Margin. ROA remains modest around 1.5% to 2% during 2020-2021 but demonstrates a steady increase thereafter, surpassing 5.7% by mid-2025. This upward trajectory signals improved overall profitability relative to total assets, indicating successful asset utilization and operational enhancements contributing to higher returns.

Tax Burden

Initial stability near 0.8, rising above 1.0 late 2022, then declining to a stable ~0.77 by mid-2025.

Interest Burden

Decline from 0.59 to 0.3 in late 2021, followed by recovery to 0.82 by mid-2025, indicating improved interest expense management or income growth.

EBIT Margin

Decline from ~9% to ~6% by 2021, then a strong continuous increase, reaching over 23% by mid-2025, showing enhanced profitability.

Asset Turnover

Consistent around 0.34-0.40, indicating stable asset utilization efficiency.

Return on Assets (ROA)

Modest at ~1.5%-2% initially, rising steadily to about 5.7% by mid-2025, reflecting overall improved profitability on assets.

Overall, the data indicate notable operational improvements over the time frame, marked by increased profitability margins and returns on assets while maintaining stable asset efficiency. Interest burden fluctuations suggest evolving financing or income conditions, whereas tax burden trends point toward normalization after a period of variability.

The financial data reveals several notable trends in the profitability and financial burden ratios over the analyzed periods.

Tax Burden Ratio

The tax burden ratio demonstrates relatively stable values, mostly fluctuating between 0.76 and 0.9 after the initial recorded period. Early in the dataset, it shows an increase reaching above 1.0 in late 2022, followed by a steady decline and stabilization around 0.76 to 0.77 through 2025. This suggests a period of slightly increased tax impact, later normalizing to a consistent level.

Interest Burden Ratio

The interest burden ratio exhibits a declining trend initially, dropping from around 0.6 to lows near 0.3 by the end of 2021, indicating reduced interest expenses relative to earnings. Subsequently, there is a recovery and progressive increase in this ratio through 2025, climbing up to approximately 0.82, which implies rising interest expenses or reduced earnings before interest over the latter periods.

EBIT Margin

The EBIT margin shows a general upward trend from 2020 into 2025. Starting near 9.1% in early 2020, it dips slightly during 2021 but then markedly improves, reaching over 23% by early 2025. This progression points to steadily improved operating profitability over time, indicating effective operational management or enhanced revenue quality.

Net Profit Margin

The net profit margin mirrors the positive trend of the EBIT margin, though the values are lower, as expected. It fluctuates in the initial periods, reaching a low point near 1.9% at the end of 2021, then accelerating growth to surpass 14% by 2025. This reflects an enhanced ability to convert revenues into net income, suggesting improved cost control, lower financial burdens, or favorable tax effects in recent years.

Overall, the data points to improving profitability metrics alongside a relatively stable tax burden and a recovering interest burden. The substantial increase in EBIT and net profit margins over the period analyzed indicates a strengthening financial position and operational efficiency.