Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
T-Mobile US Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin demonstrated fluctuations over the observed period, beginning at 58.67% in 2020 and declining to a low of 54.31% in 2021. It then stabilized slightly in 2022 at 54.5%, followed by a significant increase in 2023 to 61.57%, and continued rising to 63.57% in 2024. This upward trend in the latter years suggests improved efficiency in managing direct costs relative to revenue.
- Operating Profit Margin
- The operating profit margin showed a decreasing trend from 9.7% in 2020 to 8.22% in 2022, indicating increasing operating expenses or pressure on operating income. However, a notable improvement occurred in the last two years, with the margin rising sharply to 18.16% in 2023 and further to 22.13% in 2024. This indicates enhanced operational efficiency and profitability from core business activities.
- Net Profit Margin
- The net profit margin followed a pattern similar to the operating margin, decreasing from 4.48% in 2020 to 3.25% in 2022, then experiencing a marked recovery with a significant increase to 10.59% in 2023 and reaching 13.93% in 2024. This recovery underscores overall improved profitability after accounting for all expenses, taxes, and non-operating items.
- Return on Equity (ROE)
- ROE exhibited a declining trend from 4.69% in 2020 to 3.72% in 2022, signaling reduced shareholder value generation during this period. A strong reversal occurred in 2023 and 2024, with ROE rising to 12.85% and 18.37%, respectively. This suggests that the company significantly enhanced its ability to generate profits from shareholders' equity in recent years.
- Return on Assets (ROA)
- ROA decreased slightly from 1.53% in 2020 to 1.23% in 2022, reflecting less effective asset utilization in generating net income. Subsequent years showed a marked increase to 4% in 2023 and 5.45% in 2024, indicating a substantial improvement in efficiently converting assets into profit.
Return on Sales
Return on Investment
Gross Profit Margin
T-Mobile US Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
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).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Analysis
- Revenues showed an overall upward trend from 2020 to 2024, increasing from approximately $68,397 million in 2020 to $81,400 million in 2024. However, there was a slight decline observed between 2021 and 2023, with revenues decreasing from $80,118 million in 2021 to $78,558 million in 2023 before rising again in 2024.
- Gross Profit Trends
- Gross profit followed a generally positive trajectory, rising from $40,131 million in 2020 to $51,747 million in 2024. There was a slight dip between 2021 and 2022 where gross profit decreased marginally from $43,513 million to $43,365 million, but it subsequently increased noticeably in 2023 and 2024.
- Gross Profit Margin Insights
- The gross profit margin experienced notable fluctuations within the period. Starting at 58.67% in 2020, it declined sharply to 54.31% in 2021 and remained relatively stable in 2022 at 54.5%. From 2022 onward, the margin improved significantly, reaching 61.57% in 2023 and further increasing to 63.57% in 2024. This indicates enhanced profitability relative to revenues in the latter years.
- Overall Observations
- Despite some decreases in revenues and gross profit between 2021 and 2023, the company demonstrated an improved gross profit margin in the last two years, suggesting better cost management or a shift toward higher-margin products or services. The increasing gross profit margin exceeded the proportional growth in revenues, contributing to greater profitability by 2024.
Operating Profit Margin
T-Mobile US Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Telecommunication Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
An analysis of the financial data over the five-year period reveals several notable trends and shifts.
- Operating Income
- Operating income showed moderate fluctuations from 2020 through 2022, beginning at $6,636 million in 2020, rising slightly to $6,892 million in 2021, then decreasing to $6,543 million in 2022. However, the data indicates a significant surge starting in 2023, where operating income more than doubled to $14,266 million, followed by a further substantial increase to $18,010 million in 2024. This represents a strong upward trend in operating profitability in the most recent two years.
- Revenues
- Revenues experienced consistent growth from 2020 to 2021, increasing from $68,397 million to $80,118 million. In 2022, revenues slightly declined to $79,571 million and continued a marginal decrease to $78,558 million in 2023. However, in 2024, revenues rebounded, climbing to $81,400 million. Overall, revenues show relative stability with minor fluctuations but an upward tendency in the final year.
- Operating Profit Margin
- The operating profit margin experienced a slight decline from 9.7% in 2020 to 8.6% in 2021 and then to 8.22% in 2022, reflecting a marginal reduction in profitability relative to revenues during this timeframe. A marked improvement followed in 2023, with the margin more than doubling to 18.16%, and continuing to increase to 22.13% in 2024. This trend suggests a significant enhancement in operational efficiency or cost management, leading to a much higher proportion of revenue being converted into operating profit in the last two years.
In summary, the period from 2020 to 2022 was characterized by relatively stable revenues and operating income with a minor downward trend in profit margin. Starting in 2023, the company demonstrates a strong turnaround as evidenced by a sharp increase in operating income and profit margin, despite modest revenue fluctuations. This indicates improved profitability and operational performance in the most recent years.
Net Profit Margin
T-Mobile US Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Telecommunication Services | ||||||
| Net Profit Margin, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income experienced a slight decrease from 3,064 million US dollars in 2020 to 2,590 million in 2022. However, there was a significant increase in 2023 to 8,317 million US dollars, continuing to rise in 2024 reaching 11,339 million US dollars. This indicates a strong recovery and substantial growth in profitability during the last two years of the observed period.
- Revenues
- Revenues showed a growth trend from 68,397 million US dollars in 2020 to a peak of 80,118 million in 2021. In subsequent years, revenues fluctuated slightly, decreasing to 79,571 million in 2022 and to 78,558 million in 2023 before increasing again to 81,400 million in 2024. Overall, revenues have maintained a relatively stable level with minor fluctuations around the 80 billion mark.
- Net Profit Margin
- The net profit margin followed a declining trend from 4.48% in 2020 to 3.25% in 2022. Thereafter, it experienced a marked improvement, rising sharply to 10.59% in 2023 and reaching 13.93% in 2024. This change corresponds with the substantial rise in net income, indicating enhanced efficiency and profitability relative to revenue in the later years.
Return on Equity (ROE)
T-Mobile US Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| ROE, Sector | ||||||
| Telecommunication Services | ||||||
| ROE, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income exhibited fluctuations over the observed period. It showed a slight decline from $3,064 million in 2020 to $2,590 million in 2022. Subsequently, there was a significant increase to $8,317 million in 2023, followed by a further rise to $11,339 million in 2024. This upward trend in the latter years indicates a strong recovery and enhanced profitability.
- Stockholders’ Equity
- Stockholders’ equity demonstrated a general downward trend post-2021. It increased from $65,344 million in 2020 to peak at $69,656 million in 2022. After this peak, a steady decline ensued, reducing equity to $61,741 million by 2024. This reduction may reflect changes in retained earnings, dividend payments, share buybacks, or other equity-related activities.
- Return on Equity (ROE)
- ROE followed a trajectory consistent with the net income changes. It decreased from 4.69% in 2020 to 3.72% in 2022, reflecting reduced profitability relative to equity. However, there was a sharp increase in 2023 and 2024, reaching 12.85% and 18.37%, respectively. The marked improvement in ROE correlates with the substantial net income growth despite the falling equity base, suggesting enhanced efficiency in generating returns for shareholders.
Return on Assets (ROA)
T-Mobile US Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| ROA, Sector | ||||||
| Telecommunication Services | ||||||
| ROA, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income demonstrates a fluctuating but overall increasing trend over the analyzed periods. Starting at $3,064 million in 2020, it slightly decreased to $3,024 million in 2021 and further declined to $2,590 million in 2022. However, significant growth occurred in the subsequent years with net income rising sharply to $8,317 million in 2023 and further to $11,339 million in 2024. This indicates a robust recovery and strong profitability improvement post-2022.
- Total Assets
- Total assets exhibit a relatively stable pattern throughout the period. The value increased gradually from $200,162 million in 2020 to a peak of $211,338 million in 2022. Following this, there was a slight decline to $207,682 million in 2023, with a modest increase to $208,035 million in 2024. Overall, total assets maintained a consistent base without significant volatility.
- Return on Assets (ROA)
- The ROA metric shows a steady decline from 1.53% in 2020 to 1.23% in 2022, which aligns with the decrease in net income during this timeframe. However, ROA rebounds strongly in 2023 and continues upward into 2024, reaching 4.00% and 5.45%, respectively. The increase exceeds the initial ROA level seen in 2020, suggesting an enhanced efficiency in asset utilization to generate profits in the later years.