Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
T-Mobile US Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | T-Mobile US Inc. debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | T-Mobile US Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | T-Mobile US Inc. debt to capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | T-Mobile US Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | T-Mobile US Inc. debt to assets ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | T-Mobile US Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | T-Mobile US Inc. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | T-Mobile US Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | T-Mobile US Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity
T-Mobile US Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 3,619) | 5,164) | 3,378) | 4,579) | 25) | |
| Short-term debt to affiliates | —) | —) | 2,245) | —) | —) | |
| Short-term financing lease liabilities | 1,260) | 1,161) | 1,120) | 1,063) | 957) | |
| Long-term debt | 69,903) | 65,301) | 67,076) | 61,830) | 10,958) | |
| Long-term debt to affiliates | 1,496) | 1,495) | 1,494) | 4,716) | 13,986) | |
| Long-term financing lease liabilities | 1,236) | 1,370) | 1,455) | 1,444) | 1,346) | |
| Total debt | 77,514) | 74,491) | 76,768) | 73,632) | 27,272) | |
| Stockholders’ equity | 64,715) | 69,656) | 69,102) | 65,344) | 28,789) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.20 | 1.07 | 1.11 | 1.13 | 0.95 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AT&T Inc. | 1.33 | 1.39 | 1.07 | 0.97 | 0.89 | |
| Verizon Communications Inc. | 1.63 | 1.65 | 1.84 | 1.90 | 1.82 | |
| Debt to Equity, Sector | ||||||
| Telecommunication Services | 1.40 | 1.40 | 1.28 | 1.22 | 1.10 | |
| Debt to Equity, Industry | ||||||
| Communication Services | 0.62 | 0.65 | 0.65 | 0.67 | 0.62 | |
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).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 77,514 ÷ 64,715 = 1.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | T-Mobile US Inc. debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
T-Mobile US Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 3,619) | 5,164) | 3,378) | 4,579) | 25) | |
| Short-term debt to affiliates | —) | —) | 2,245) | —) | —) | |
| Short-term financing lease liabilities | 1,260) | 1,161) | 1,120) | 1,063) | 957) | |
| Long-term debt | 69,903) | 65,301) | 67,076) | 61,830) | 10,958) | |
| Long-term debt to affiliates | 1,496) | 1,495) | 1,494) | 4,716) | 13,986) | |
| Long-term financing lease liabilities | 1,236) | 1,370) | 1,455) | 1,444) | 1,346) | |
| Total debt | 77,514) | 74,491) | 76,768) | 73,632) | 27,272) | |
| Short-term operating lease liabilities | 3,555) | 3,512) | 3,425) | 3,868) | 2,287) | |
| Long-term operating lease liabilities | 28,240) | 29,855) | 25,818) | 26,719) | 10,539) | |
| Total debt (including operating lease liability) | 109,309) | 107,858) | 106,011) | 104,219) | 40,098) | |
| Stockholders’ equity | 64,715) | 69,656) | 69,102) | 65,344) | 28,789) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.69 | 1.55 | 1.53 | 1.59 | 1.39 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AT&T Inc. | 1.53 | 1.62 | 1.22 | 1.13 | 1.02 | |
| Verizon Communications Inc. | 1.89 | 1.93 | 2.18 | 2.22 | 2.17 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Telecommunication Services | 1.70 | 1.71 | 1.53 | 1.48 | 1.32 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.76 | 0.80 | 0.79 | 0.80 | 0.74 | |
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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 109,309 ÷ 64,715 = 1.69
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | T-Mobile US Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
T-Mobile US Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 3,619) | 5,164) | 3,378) | 4,579) | 25) | |
| Short-term debt to affiliates | —) | —) | 2,245) | —) | —) | |
| Short-term financing lease liabilities | 1,260) | 1,161) | 1,120) | 1,063) | 957) | |
| Long-term debt | 69,903) | 65,301) | 67,076) | 61,830) | 10,958) | |
| Long-term debt to affiliates | 1,496) | 1,495) | 1,494) | 4,716) | 13,986) | |
| Long-term financing lease liabilities | 1,236) | 1,370) | 1,455) | 1,444) | 1,346) | |
| Total debt | 77,514) | 74,491) | 76,768) | 73,632) | 27,272) | |
| Stockholders’ equity | 64,715) | 69,656) | 69,102) | 65,344) | 28,789) | |
| Total capital | 142,229) | 144,147) | 145,870) | 138,976) | 56,061) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.54 | 0.52 | 0.53 | 0.53 | 0.49 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AT&T Inc. | 0.57 | 0.58 | 0.52 | 0.49 | 0.47 | |
| Verizon Communications Inc. | 0.62 | 0.62 | 0.65 | 0.66 | 0.64 | |
| Debt to Capital, Sector | ||||||
| Telecommunication Services | 0.58 | 0.58 | 0.56 | 0.55 | 0.52 | |
| Debt to Capital, Industry | ||||||
| Communication Services | 0.38 | 0.39 | 0.40 | 0.40 | 0.38 | |
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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 77,514 ÷ 142,229 = 0.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | T-Mobile US Inc. debt to capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
T-Mobile US Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 3,619) | 5,164) | 3,378) | 4,579) | 25) | |
| Short-term debt to affiliates | —) | —) | 2,245) | —) | —) | |
| Short-term financing lease liabilities | 1,260) | 1,161) | 1,120) | 1,063) | 957) | |
| Long-term debt | 69,903) | 65,301) | 67,076) | 61,830) | 10,958) | |
| Long-term debt to affiliates | 1,496) | 1,495) | 1,494) | 4,716) | 13,986) | |
| Long-term financing lease liabilities | 1,236) | 1,370) | 1,455) | 1,444) | 1,346) | |
| Total debt | 77,514) | 74,491) | 76,768) | 73,632) | 27,272) | |
| Short-term operating lease liabilities | 3,555) | 3,512) | 3,425) | 3,868) | 2,287) | |
| Long-term operating lease liabilities | 28,240) | 29,855) | 25,818) | 26,719) | 10,539) | |
| Total debt (including operating lease liability) | 109,309) | 107,858) | 106,011) | 104,219) | 40,098) | |
| Stockholders’ equity | 64,715) | 69,656) | 69,102) | 65,344) | 28,789) | |
| Total capital (including operating lease liability) | 174,024) | 177,514) | 175,113) | 169,563) | 68,887) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.63 | 0.61 | 0.61 | 0.61 | 0.58 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AT&T Inc. | 0.61 | 0.62 | 0.55 | 0.53 | 0.51 | |
| Verizon Communications Inc. | 0.65 | 0.66 | 0.69 | 0.69 | 0.68 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Telecommunication Services | 0.63 | 0.63 | 0.61 | 0.60 | 0.57 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.43 | 0.44 | 0.44 | 0.44 | 0.43 | |
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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 109,309 ÷ 174,024 = 0.63
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | T-Mobile US Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
T-Mobile US Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 3,619) | 5,164) | 3,378) | 4,579) | 25) | |
| Short-term debt to affiliates | —) | —) | 2,245) | —) | —) | |
| Short-term financing lease liabilities | 1,260) | 1,161) | 1,120) | 1,063) | 957) | |
| Long-term debt | 69,903) | 65,301) | 67,076) | 61,830) | 10,958) | |
| Long-term debt to affiliates | 1,496) | 1,495) | 1,494) | 4,716) | 13,986) | |
| Long-term financing lease liabilities | 1,236) | 1,370) | 1,455) | 1,444) | 1,346) | |
| Total debt | 77,514) | 74,491) | 76,768) | 73,632) | 27,272) | |
| Total assets | 207,682) | 211,338) | 206,563) | 200,162) | 86,921) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.37 | 0.35 | 0.37 | 0.37 | 0.31 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AT&T Inc. | 0.34 | 0.34 | 0.32 | 0.30 | 0.30 | |
| Verizon Communications Inc. | 0.40 | 0.40 | 0.41 | 0.41 | 0.38 | |
| Debt to Assets, Sector | ||||||
| Telecommunication Services | 0.37 | 0.36 | 0.36 | 0.35 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Communication Services | 0.26 | 0.27 | 0.27 | 0.27 | 0.26 | |
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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 77,514 ÷ 207,682 = 0.37
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | T-Mobile US Inc. debt to assets ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
T-Mobile US Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 3,619) | 5,164) | 3,378) | 4,579) | 25) | |
| Short-term debt to affiliates | —) | —) | 2,245) | —) | —) | |
| Short-term financing lease liabilities | 1,260) | 1,161) | 1,120) | 1,063) | 957) | |
| Long-term debt | 69,903) | 65,301) | 67,076) | 61,830) | 10,958) | |
| Long-term debt to affiliates | 1,496) | 1,495) | 1,494) | 4,716) | 13,986) | |
| Long-term financing lease liabilities | 1,236) | 1,370) | 1,455) | 1,444) | 1,346) | |
| Total debt | 77,514) | 74,491) | 76,768) | 73,632) | 27,272) | |
| Short-term operating lease liabilities | 3,555) | 3,512) | 3,425) | 3,868) | 2,287) | |
| Long-term operating lease liabilities | 28,240) | 29,855) | 25,818) | 26,719) | 10,539) | |
| Total debt (including operating lease liability) | 109,309) | 107,858) | 106,011) | 104,219) | 40,098) | |
| Total assets | 207,682) | 211,338) | 206,563) | 200,162) | 86,921) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.53 | 0.51 | 0.51 | 0.52 | 0.46 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AT&T Inc. | 0.39 | 0.39 | 0.37 | 0.35 | 0.34 | |
| Verizon Communications Inc. | 0.46 | 0.46 | 0.49 | 0.48 | 0.46 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Telecommunication Services | 0.44 | 0.45 | 0.43 | 0.42 | 0.39 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.32 | 0.33 | 0.33 | 0.33 | 0.31 | |
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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 109,309 ÷ 207,682 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | T-Mobile US Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Financial Leverage
T-Mobile US Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AT&T Inc. | 3.94 | 4.13 | 3.32 | 3.25 | 2.99 | |
| Verizon Communications Inc. | 4.11 | 4.17 | 4.48 | 4.66 | 4.75 | |
| Financial Leverage, Sector | ||||||
| Telecommunication Services | 3.82 | 3.85 | 3.55 | 3.54 | 3.39 | |
| Financial Leverage, Industry | ||||||
| Communication Services | 2.39 | 2.45 | 2.43 | 2.45 | 2.42 | |
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).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 207,682 ÷ 64,715 = 3.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | T-Mobile US Inc. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
T-Mobile US Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 8,317) | 2,590) | 3,024) | 3,064) | 3,468) | |
| Less: Income from discontinued operations, net of tax | —) | —) | —) | 320) | —) | |
| Add: Income tax expense | 2,682) | 556) | 327) | 786) | 1,135) | |
| Add: Interest expense, net | 3,335) | 3,364) | 3,342) | 2,701) | 1,111) | |
| Earnings before interest and tax (EBIT) | 14,334) | 6,510) | 6,693) | 6,231) | 5,714) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.30 | 1.94 | 2.00 | 2.31 | 5.14 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AT&T Inc. | 3.96 | 0.49 | 4.91 | 0.64 | 3.19 | |
| Verizon Communications Inc. | 4.08 | 8.82 | 9.44 | 6.64 | 5.81 | |
| Interest Coverage, Sector | ||||||
| Telecommunication Services | 4.07 | 3.16 | 5.36 | 2.66 | 4.21 | |
| Interest Coverage, Industry | ||||||
| Communication Services | 10.21 | 8.50 | 11.90 | 6.51 | 7.88 | |
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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 14,334 ÷ 3,335 = 4.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | T-Mobile US Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Fixed Charge Coverage
T-Mobile US Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 8,317) | 2,590) | 3,024) | 3,064) | 3,468) | |
| Less: Income from discontinued operations, net of tax | —) | —) | —) | 320) | —) | |
| Add: Income tax expense | 2,682) | 556) | 327) | 786) | 1,135) | |
| Add: Interest expense, net | 3,335) | 3,364) | 3,342) | 2,701) | 1,111) | |
| Earnings before interest and tax (EBIT) | 14,334) | 6,510) | 6,693) | 6,231) | 5,714) | |
| Add: Operating lease expense | 4,987) | 6,514) | 5,921) | 4,438) | 2,558) | |
| Earnings before fixed charges and tax | 19,321) | 13,024) | 12,614) | 10,669) | 8,272) | |
| Interest expense, net | 3,335) | 3,364) | 3,342) | 2,701) | 1,111) | |
| Operating lease expense | 4,987) | 6,514) | 5,921) | 4,438) | 2,558) | |
| Fixed charges | 8,322) | 9,878) | 9,263) | 7,139) | 3,669) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.32 | 1.32 | 1.36 | 1.49 | 2.25 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AT&T Inc. | 2.56 | 0.72 | 3.06 | 0.78 | 2.31 | |
| Verizon Communications Inc. | 2.55 | 4.16 | 4.37 | 3.59 | 3.40 | |
| Fixed Charge Coverage, Sector | ||||||
| Telecommunication Services | 2.49 | 1.92 | 2.92 | 1.80 | 2.68 | |
| Fixed Charge Coverage, Industry | ||||||
| Communication Services | 5.36 | 4.25 | 5.95 | 3.73 | 4.58 | |
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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 19,321 ÷ 8,322 = 2.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | T-Mobile US Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |