Stock Analysis on Net
Stock Analysis on Net

T-Mobile US Inc. (NASDAQ:TMUS)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

T-Mobile US Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 42 (22) 22 (17) (24)
State 28 64 89 84 70
Foreign 12 22 19 10 (2)
Current tax expense 82 64 130 77 44
Federal 2,150 628 541 676 954
State 417 (77) (327) 34 125
Foreign 33 (59) (17) (1) 12
Deferred tax expense 2,600 492 197 709 1,091
Income tax expense 2,682 556 327 786 1,135

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).

Item Description The company
Current tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. T-Mobile US Inc. current tax expense decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Deferred tax expense Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. T-Mobile US Inc. deferred tax expense increased from 2021 to 2022 and from 2022 to 2023.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. T-Mobile US Inc. income tax expense increased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

T-Mobile US Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State taxes, net of federal benefit 4.20% 4.50% 4.50% 4.80% 5.10%
Effect of law and rate changes -0.10% -5.30% -1.70% -0.80% 0.40%
Change in valuation allowance -0.20% -0.80% -10.70% -2.60% -1.80%
Foreign taxes 0.40% 0.70% 0.10% 0.30% 0.30%
Permanent differences -0.10% -0.20% 0.30% 0.40% 0.60%
Federal tax credits -0.80% -2.40% -2.50% -0.90% -0.80%
Equity-based compensation -0.40% -1.20% -2.60% -2.50% -0.60%
Non-deductible compensation 0.50% 1.20% 1.50% 2.30% 0.60%
Other, net -0.10% 0.20% -0.10% 0.30% -0.10%
Effective income tax rate 24.40% 17.70% 9.80% 22.30% 24.70%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. T-Mobile US Inc. effective income tax rate increased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

T-Mobile US Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Loss carryforwards 6,227 6,641 4,414 4,540 823
Lease liabilities 8,355 8,837 7,717 8,031 3,403
Property and equipment — — — 90 —
Reserves and accruals 1,177 1,526 1,280 1,348 659
Federal and state tax credits 426 373 404 411 331
Other 4,033 4,349 2,888 2,665 903
Deferred tax assets, gross 20,218 21,726 16,703 17,085 6,119
Valuation allowance (306) (375) (435) (878) (129)
Deferred tax assets, net 19,912 21,351 16,268 16,207 5,990
Spectrum licenses (19,006) (18,341) (18,060) (17,518) (5,902)
Property and equipment (6,142) (5,147) (380) — (2,506)
Lease right-of-use assets (7,043) (7,461) (6,761) (7,239) (2,881)
Other intangible assets (350) (519) (769) (912) (19)
Other (829) (767) (514) (504) (289)
Deferred tax liabilities (33,370) (32,235) (26,484) (26,173) (11,597)
Net deferred tax assets (liabilities) (13,458) (10,884) (10,216) (9,966) (5,607)

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).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. T-Mobile US Inc. deferred tax assets, gross increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. T-Mobile US Inc. deferred tax assets, net increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. T-Mobile US Inc. net deferred tax assets (liabilities) decreased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

T-Mobile US Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax liabilities 13,458 10,884 10,216 9,966 5,607

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).

Item Description The company
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. T-Mobile US Inc. deferred tax liabilities increased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

T-Mobile US Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Liabilities
Total liabilities (as reported) 142,967 141,682 137,461 134,818 58,132
Less: Noncurrent deferred tax liabilities, net 13,458 10,884 10,216 9,966 5,607
Total liabilities (adjusted) 129,509 130,798 127,245 124,852 52,525
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 64,715 69,656 69,102 65,344 28,789
Less: Net deferred tax assets (liabilities) (13,458) (10,884) (10,216) (9,966) (5,607)
Stockholders’ equity (adjusted) 78,173 80,540 79,318 75,310 34,396
Adjustment to Net Income
Net income (as reported) 8,317 2,590 3,024 3,064 3,468
Add: Deferred income tax expense (benefit) 2,600 492 197 709 1,091
Net income (adjusted) 10,917 3,082 3,221 3,773 4,559

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).

T-Mobile US Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

T-Mobile US Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 10.59% 3.25% 3.77% 4.48% 7.71%
Adjusted net profit margin 13.90% 3.87% 4.02% 5.52% 10.13%
Financial Leverage
Reported financial leverage 3.21 3.03 2.99 3.06 3.02
Adjusted financial leverage 2.66 2.62 2.60 2.66 2.53
Return on Equity (ROE)
Reported ROE 12.85% 3.72% 4.38% 4.69% 12.05%
Adjusted ROE 13.97% 3.83% 4.06% 5.01% 13.25%
Return on Assets (ROA)
Reported ROA 4.00% 1.23% 1.46% 1.53% 3.99%
Adjusted ROA 5.26% 1.46% 1.56% 1.88% 5.24%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. T-Mobile US Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 T-Mobile US Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. T-Mobile US Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. T-Mobile US Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

T-Mobile US Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 8,317 2,590 3,024 3,064 3,468
Revenues 78,558 79,571 80,118 68,397 44,998
Profitability Ratio
Net profit margin1 10.59% 3.25% 3.77% 4.48% 7.71%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 10,917 3,082 3,221 3,773 4,559
Revenues 78,558 79,571 80,118 68,397 44,998
Profitability Ratio
Adjusted net profit margin2 13.90% 3.87% 4.02% 5.52% 10.13%

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).

2023 Calculations

1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,317 ÷ 78,558 = 10.59%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 10,917 ÷ 78,558 = 13.90%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. T-Mobile US Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
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
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets 207,682 211,338 206,563 200,162 86,921
Adjusted stockholders’ equity 78,173 80,540 79,318 75,310 34,396
Solvency Ratio
Adjusted financial leverage2 2.66 2.62 2.60 2.66 2.53

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).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 207,682 ÷ 64,715 = 3.21

2 Adjusted financial leverage = Total assets ÷ Adjusted stockholders’ equity
= 207,682 ÷ 78,173 = 2.66

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 T-Mobile US Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 8,317 2,590 3,024 3,064 3,468
Stockholders’ equity 64,715 69,656 69,102 65,344 28,789
Profitability Ratio
ROE1 12.85% 3.72% 4.38% 4.69% 12.05%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 10,917 3,082 3,221 3,773 4,559
Adjusted stockholders’ equity 78,173 80,540 79,318 75,310 34,396
Profitability Ratio
Adjusted ROE2 13.97% 3.83% 4.06% 5.01% 13.25%

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).

2023 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 8,317 ÷ 64,715 = 12.85%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 10,917 ÷ 78,173 = 13.97%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. T-Mobile US Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 8,317 2,590 3,024 3,064 3,468
Total assets 207,682 211,338 206,563 200,162 86,921
Profitability Ratio
ROA1 4.00% 1.23% 1.46% 1.53% 3.99%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 10,917 3,082 3,221 3,773 4,559
Total assets 207,682 211,338 206,563 200,162 86,921
Profitability Ratio
Adjusted ROA2 5.26% 1.46% 1.56% 1.88% 5.24%

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).

2023 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 8,317 ÷ 207,682 = 4.00%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 10,917 ÷ 207,682 = 5.26%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. T-Mobile US Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.