Stock Analysis on Net

T-Mobile US Inc. (NASDAQ:TMUS)

$24.99

Common-Size Income Statement

T-Mobile US Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Postpaid revenues
Prepaid revenues
Wholesale and other service revenues
Service revenues
Equipment revenues
Other revenues
Revenues
Cost of services, exclusive of depreciation and amortization
Cost of equipment sales, exclusive of depreciation and amortization
Cost of revenues
Gross profit
Selling, general and administrative
Impairment expense
Gain (loss) on disposal group held for sale
Depreciation and amortization
Operating income
Interest expense, net
Other income (expense), net
Other expense, net
Income before income taxes
Income tax expense
Income from continuing operations
Income from discontinued operations, net of tax
Net income

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).


Revenue Composition
The proportion of postpaid revenues has shown a consistent upward trend, increasing from 53.08% in 2020 to 64.3% by 2024, indicating a growing reliance on postpaid customer segments. Prepaid revenues have remained relatively stable, fluctuating slightly around the 12-13% range. Wholesale and other service revenues, however, have decreased notably from 6.82% in 2020 to 4.22% in 2024. Service revenues as a whole have increased their share of total revenues significantly from 73.68% to 81.3%, pointing to a shift towards service-driven income. Conversely, equipment revenues have declined from 25.31% to 17.52%, suggesting less dependence on hardware sales. Other revenues showed a mild increase initially but dipped to 1.18% in 2024.
Cost Structure
Cost of services (excluding depreciation and amortization) as a percentage of revenues first increased slightly in 2022 but then sharply declined, dropping from -17.37% in 2020 to -13.23% in 2024, reflecting improved service cost management. Cost of equipment sales remained high, peaking at -28.3% in 2021 and slightly reducing thereafter but still above -23%, signaling continued expenses related to hardware sales. Overall cost of revenues has decreased significantly from -41.33% in 2020 to -36.43% in 2024, contributing to enhanced gross profitability.
Profitability
Gross profit margin has demonstrated a strengthening trend, rising from 58.67% in 2020 to 63.57% in 2024. Operating income margin exhibited volatility but experienced a substantial rise from 9.7% in 2020 to 22.13% in 2024, indicating improved operational efficiency and profitability. Depreciation and amortization costs as a share of revenues have moderately decreased over the period, from -20.69% to -15.87%, which may suggest either reduced capital expenditure or more efficient asset management. Selling, general, and administrative expenses fluctuated but overall decreased from -27.67% to -25.57%, supporting stronger operating margins.
Income and Expense Trends
Interest expense has remained relatively steady around -4.1% to -4.25%, showing consistent financing costs. Other income and other expense items have been minor but show a slight improvement in net other income from negative figures towards a small positive in 2024. Income before income taxes improved significantly from 5.16% to 18.07%, reflecting overall profitability gains. Income tax expense, after an initial reduction, rose notably to -4.14% in 2024, which aligns with the substantial pretax income growth. Net income margin mirrored the rise in operating income, growing markedly from 4.48% in 2020 to 13.93% in 2024, illustrating enhanced bottom-line performance.
Exceptional Items
Impairment expenses were present in 2020 and 2022 but absent in other years, showing occasional asset write-downs. A one-time loss on disposal group held for sale occurred in 2022, with a minor gain recorded in 2023, suggesting some restructuring or asset disposal activities during this period.