Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Selected Financial Data since 2013
- Net Profit Margin since 2013
- Current Ratio since 2013
- Price to Earnings (P/E) since 2013
- Analysis of Debt
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Long-term Activity Ratios (Summary)
T-Mobile US Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of long-term investment activity ratios reveals generally positive trends across the observed period. Several ratios demonstrate increasing efficiency in asset utilization, while others indicate a strengthening relationship between equity and revenue generation. The analysis focuses on net fixed asset turnover, total asset turnover, and equity turnover, both with and without consideration of operating leases.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a generally increasing trend, rising from 1.86 in 2021 to 2.15 in 2025. This suggests improving efficiency in generating revenue from fixed assets. A slight decrease was observed between 2021 and 2022, but the ratio recovered and continued to climb in subsequent years. When including operating lease right-of-use assets, the ratio also demonstrates an upward trend, albeit at a lower magnitude, increasing from 1.14 in 2021 to 1.32 in 2025. This indicates that incorporating lease obligations still shows improved asset utilization, though less pronounced than when considering only net fixed assets.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable, fluctuating around 0.39. It begins at 0.39 in 2021, dips slightly to 0.38 in 2022 and 2023, and then returns to 0.39 in 2024 before increasing to 0.40 in 2025. This suggests a consistent, though modest, level of revenue generation per dollar of total assets. The limited fluctuation indicates a stable operational approach to asset management.
- Equity Turnover
- The equity turnover ratio shows a consistent upward trend, increasing from 1.16 in 2021 to 1.49 in 2025. This indicates a strengthening relationship between equity financing and revenue generation. For every dollar of equity, the company is generating an increasing amount of revenue, suggesting improved profitability and efficient use of shareholder investment.
Overall, the observed trends suggest improving efficiency in asset utilization and a strengthening connection between equity and revenue. The increases in net fixed asset turnover and equity turnover are particularly noteworthy, while the stable total asset turnover indicates consistent performance across the broader asset base.
Net Fixed Asset Turnover
T-Mobile US Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net, including financing lease right-of-use assets | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Telecommunication Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net, including financing lease right-of-use assets
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a fluctuating pattern over the five-year period. Revenues demonstrate an initial decline followed by a recovery and subsequent growth, while net property, plant, and equipment (PP&E) generally decreased. The interplay between these two factors drives the observed trend in the turnover ratio.
- Overall Trend
- The net fixed asset turnover ratio initially decreased from 1.86 in 2021 to 1.75 in 2022, then experienced a moderate increase to 1.80 in 2023. A more substantial increase occurred in 2024, reaching 1.96, and continued upward in 2025 to 2.15. This indicates improving efficiency in generating revenue from fixed assets over the latter part of the period.
- Revenue Impact
- Revenues decreased slightly from $80,118 million in 2021 to $79,571 million in 2022, coinciding with the initial decline in the net fixed asset turnover ratio. Revenues then decreased further to $78,558 million in 2023 before recovering to $81,400 million in 2024 and increasing significantly to $88,309 million in 2025. The revenue growth in 2024 and 2025 likely contributed significantly to the observed increases in the turnover ratio.
- Fixed Asset Impact
- Net PP&E increased from $43,125 million in 2021 to $45,343 million in 2022. Subsequently, it decreased to $43,702 million in 2023, then continued to decline to $41,624 million in 2024 and $41,093 million in 2025. The reduction in net PP&E in 2024 and 2025, while revenues were increasing, would have positively impacted the net fixed asset turnover ratio, amplifying the effect of revenue growth.
The increasing net fixed asset turnover ratio in the final two years suggests the company is becoming more effective at utilizing its fixed assets to generate sales. This could be due to increased operational efficiency, improved asset management, or a combination of both. The concurrent decrease in net PP&E further supports the conclusion of improved asset utilization.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
T-Mobile US Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net, including financing lease right-of-use assets | ||||||
| Operating lease right-of-use assets | ||||||
| Property and equipment, net, including financing lease right-of-use assets (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Telecommunication Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net, including financing lease right-of-use assets (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals fluctuating revenue alongside evolving net fixed assets, resulting in a dynamic net fixed asset turnover ratio over the five-year period. Revenues experienced a slight decrease between 2021 and 2022, followed by a continued decline in 2023, before recovering and demonstrating substantial growth in 2024 and 2025. Concurrently, net fixed assets initially increased from 2021 to 2022, then decreased for two consecutive years, and experienced a modest decline in the final year of the observed period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited volatility throughout the period. It decreased from 1.14 in 2021 to 1.07 in 2022, coinciding with the initial revenue decline and asset increase. A slight recovery to 1.11 was observed in 2023. A more pronounced increase occurred in 2024, with the ratio reaching 1.21, driven by revenue growth and continued asset reduction. The most significant increase was observed in 2025, with the ratio climbing to 1.32, indicating a substantial improvement in the efficiency of asset utilization in generating revenue. This suggests that the company is becoming more effective at generating sales from its fixed asset base.
The observed trends suggest a potential shift in operational efficiency. The increasing net fixed asset turnover ratio in the latter years indicates that the company is generating more revenue per dollar of fixed assets, potentially due to improved asset management, increased sales effectiveness, or a combination of both. The initial fluctuations likely reflect strategic investments in fixed assets and corresponding adjustments in revenue generation strategies.
The correlation between revenue and the net fixed asset turnover ratio is evident. The recovery and subsequent growth in revenue directly contributed to the increasing ratio in 2024 and 2025, while the initial revenue decline contributed to the ratio’s decrease in 2022.
Total Asset Turnover
T-Mobile US Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Telecommunication Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a relatively stable pattern over the five-year period. Revenues demonstrate a slight initial decrease followed by a recovery and subsequent growth, while total assets remain comparatively consistent. The interplay between these figures results in a nuanced trend for the asset turnover ratio.
- Total Asset Turnover
- The total asset turnover ratio remained within a narrow range, fluctuating between 0.38 and 0.40. It began at 0.39 in 2021, decreased slightly to 0.38 in both 2022 and 2023, and then increased back to 0.39 in 2024 before reaching 0.40 in 2025. This suggests a consistent, though not dramatically changing, efficiency in utilizing assets to generate revenue.
The slight dip in the ratio during 2022 and 2023 coincides with a marginal decrease in revenues. However, the ratio’s subsequent increase in 2024 and 2025 aligns with the revenue recovery and growth, indicating a positive correlation. The relatively stable asset base contributes to the limited fluctuation in the ratio. A consistent ratio suggests the company maintains a predictable level of sales generation relative to its asset investment.
- Revenue Trend
- Revenues experienced a minor decline from US$80,118 million in 2021 to US$79,571 million in 2022, followed by a further decrease to US$78,558 million in 2023. A recovery is then observed, with revenues increasing to US$81,400 million in 2024 and continuing to grow to US$88,309 million in 2025. This upward trend in later years partially offsets the earlier declines.
- Asset Trend
- Total assets showed a modest increase from US$206,563 million in 2021 to US$211,338 million in 2022. A slight decrease was noted in 2023, with assets falling to US$207,682 million, before stabilizing at US$208,035 million in 2024. Further growth is observed in 2025, with total assets reaching US$219,237 million. The asset base remains relatively stable throughout the period.
Overall, the total asset turnover ratio indicates a stable operational efficiency. The observed correlation between revenue fluctuations and the ratio suggests that changes in sales directly impact the company’s ability to generate revenue from its assets. The consistent asset base provides a foundation for this relationship.
Equity Turnover
T-Mobile US Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Telecommunication Services | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates a clear upward trend over the five-year period. Revenues experienced a slight decrease in 2022, followed by a modest increase in 2023, a more substantial increase in 2024, and a significant increase in 2025. Simultaneously, stockholders’ equity exhibited a decline from 2021 through 2025. The combined effect of these movements is reflected in the increasing equity turnover ratio.
- Equity Turnover
- The equity turnover ratio increased consistently from 1.16 in 2021 to 1.49 in 2025. This indicates that the company is generating more revenue for each dollar of stockholders’ equity. The most significant increase occurred between 2023 and 2025, rising from 1.21 to 1.49. This suggests improved efficiency in utilizing equity to generate sales during those years.
- Revenue Trend
- Revenues decreased slightly from US$80,118 million in 2021 to US$79,571 million in 2022. A recovery began in 2023 with revenues reaching US$78,558 million, followed by a more pronounced increase to US$81,400 million in 2024. The largest revenue figure was recorded in 2025, at US$88,309 million, representing a substantial year-over-year growth.
- Stockholders’ Equity Trend
- Stockholders’ equity decreased steadily throughout the period, declining from US$69,102 million in 2021 to US$59,203 million in 2025. This consistent reduction in equity, coupled with the revenue increases observed in later years, directly contributes to the rising equity turnover ratio. The decrease in equity could be attributable to share repurchases, dividend payments, or retained earnings policies.
The increasing equity turnover ratio, driven by rising revenues and decreasing stockholders’ equity, suggests a growing efficiency in the company’s use of equity financing. Further investigation into the reasons behind the decline in stockholders’ equity would provide a more complete understanding of the financial dynamics at play.