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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal 57 42 (22) 22 (17)
State 179 28 64 89 84
Foreign 17 12 22 19 10
Current tax expense 253 82 64 130 77
Federal 2,743 2,150 628 541 676
State 348 417 (77) (327) 34
Foreign 29 33 (59) (17) (1)
Deferred tax expense 3,120 2,600 492 197 709
Income tax expense 3,373 2,682 556 327 786

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).

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 increased from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.

Effective Income Tax Rate (EITR)

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State taxes, net of federal benefit 3.30% 4.20% 4.50% 4.50% 4.80%
Effect of law and rate changes 0.10% -0.10% -5.30% -1.70% -0.80%
Change in valuation allowance -0.20% -0.20% -0.80% -10.70% -2.60%
Foreign taxes 0.30% 0.40% 0.70% 0.10% 0.30%
Permanent differences 0.30% -0.10% -0.20% 0.30% 0.40%
Federal tax credits -1.10% -0.80% -2.40% -2.50% -0.90%
Equity-based compensation -0.30% -0.40% -1.20% -2.60% -2.50%
Non-deductible compensation -0.10% 0.50% 1.20% 1.50% 2.30%
Other, net -0.40% -0.10% 0.20% -0.10% 0.30%
Effective income tax rate 22.90% 24.40% 17.70% 9.80% 22.30%

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).

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 2022 to 2023 but then slightly decreased from 2023 to 2024.

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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Loss carryforwards 3,844 6,227 6,641 4,414 4,540
Lease liabilities 7,781 8,355 8,837 7,717 8,031
Property and equipment — — — — 90
Reserves and accruals 958 1,177 1,526 1,280 1,348
Other 3,959 4,459 4,722 3,292 3,076
Deferred tax assets, gross 16,542 20,218 21,726 16,703 17,085
Valuation allowance (259) (306) (375) (435) (878)
Deferred tax assets, net 16,283 19,912 21,351 16,268 16,207
Spectrum licenses (19,527) (19,006) (18,341) (18,060) (17,518)
Property and equipment (5,874) (6,142) (5,147) (380) —
Lease right-of-use assets (6,508) (7,043) (7,461) (6,761) (7,239)
Other (1,074) (1,179) (1,286) (1,283) (1,416)
Deferred tax liabilities (32,983) (33,370) (32,235) (26,484) (26,173)
Net deferred tax assets (liabilities) (16,700) (13,458) (10,884) (10,216) (9,966)

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).

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 decreased from 2022 to 2023 and from 2023 to 2024.
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 decreased from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

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

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax liabilities 16,700 13,458 10,884 10,216 9,966

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).

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 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

T-Mobile US Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Liabilities
Total liabilities (as reported) 146,294 142,967 141,682 137,461 134,818
Less: Noncurrent deferred tax liabilities, net 16,700 13,458 10,884 10,216 9,966
Total liabilities (adjusted) 129,594 129,509 130,798 127,245 124,852
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 61,741 64,715 69,656 69,102 65,344
Less: Net deferred tax assets (liabilities) (16,700) (13,458) (10,884) (10,216) (9,966)
Stockholders’ equity (adjusted) 78,441 78,173 80,540 79,318 75,310
Adjustment to Net Income
Net income (as reported) 11,339 8,317 2,590 3,024 3,064
Add: Deferred income tax expense (benefit) 3,120 2,600 492 197 709
Net income (adjusted) 14,459 10,917 3,082 3,221 3,773

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).

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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 13.93% 10.59% 3.25% 3.77% 4.48%
Adjusted net profit margin 17.76% 13.90% 3.87% 4.02% 5.52%
Financial Leverage
Reported financial leverage 3.37 3.21 3.03 2.99 3.06
Adjusted financial leverage 2.65 2.66 2.62 2.60 2.66
Return on Equity (ROE)
Reported ROE 18.37% 12.85% 3.72% 4.38% 4.69%
Adjusted ROE 18.43% 13.97% 3.83% 4.06% 5.01%
Return on Assets (ROA)
Reported ROA 5.45% 4.00% 1.23% 1.46% 1.53%
Adjusted ROA 6.95% 5.26% 1.46% 1.56% 1.88%

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).

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 improved from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 but then slightly decreased from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. T-Mobile US Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. T-Mobile US Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

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

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 11,339 8,317 2,590 3,024 3,064
Revenues 81,400 78,558 79,571 80,118 68,397
Profitability Ratio
Net profit margin1 13.93% 10.59% 3.25% 3.77% 4.48%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 14,459 10,917 3,082 3,221 3,773
Revenues 81,400 78,558 79,571 80,118 68,397
Profitability Ratio
Adjusted net profit margin2 17.76% 13.90% 3.87% 4.02% 5.52%

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).

2024 Calculations

1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 11,339 ÷ 81,400 = 13.93%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 14,459 ÷ 81,400 = 17.76%

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 improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 208,035 207,682 211,338 206,563 200,162
Stockholders’ equity 61,741 64,715 69,656 69,102 65,344
Solvency Ratio
Financial leverage1 3.37 3.21 3.03 2.99 3.06
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets 208,035 207,682 211,338 206,563 200,162
Adjusted stockholders’ equity 78,441 78,173 80,540 79,318 75,310
Solvency Ratio
Adjusted financial leverage2 2.65 2.66 2.62 2.60 2.66

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).

2024 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 208,035 ÷ 61,741 = 3.37

2 Adjusted financial leverage = Total assets ÷ Adjusted stockholders’ equity
= 208,035 ÷ 78,441 = 2.65

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 2022 to 2023 but then slightly decreased from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 11,339 8,317 2,590 3,024 3,064
Stockholders’ equity 61,741 64,715 69,656 69,102 65,344
Profitability Ratio
ROE1 18.37% 12.85% 3.72% 4.38% 4.69%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 14,459 10,917 3,082 3,221 3,773
Adjusted stockholders’ equity 78,441 78,173 80,540 79,318 75,310
Profitability Ratio
Adjusted ROE2 18.43% 13.97% 3.83% 4.06% 5.01%

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).

2024 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 11,339 ÷ 61,741 = 18.37%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 14,459 ÷ 78,441 = 18.43%

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 improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 11,339 8,317 2,590 3,024 3,064
Total assets 208,035 207,682 211,338 206,563 200,162
Profitability Ratio
ROA1 5.45% 4.00% 1.23% 1.46% 1.53%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 14,459 10,917 3,082 3,221 3,773
Total assets 208,035 207,682 211,338 206,563 200,162
Profitability Ratio
Adjusted ROA2 6.95% 5.26% 1.46% 1.56% 1.88%

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).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 11,339 ÷ 208,035 = 5.45%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 14,459 ÷ 208,035 = 6.95%

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 improved from 2022 to 2023 and from 2023 to 2024.