Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
T-Mobile US Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | T-Mobile US Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | T-Mobile US Inc. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | T-Mobile US Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | T-Mobile US Inc. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | T-Mobile US Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Gross Profit Margin
T-Mobile US Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 48,370) | 43,365) | 43,513) | 40,131) | 26,477) | |
| Revenues | 78,558) | 79,571) | 80,118) | 68,397) | 44,998) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 61.57% | 54.50% | 54.31% | 58.67% | 58.84% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AT&T Inc. | 59.06% | 57.89% | 52.74% | 53.47% | 53.56% | |
| Verizon Communications Inc. | 59.03% | 56.79% | 57.86% | 60.09% | 58.50% | |
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).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 48,370 ÷ 78,558 = 61.57%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | T-Mobile US Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
T-Mobile US Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 14,266) | 6,543) | 6,892) | 6,636) | 5,722) | |
| Revenues | 78,558) | 79,571) | 80,118) | 68,397) | 44,998) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 18.16% | 8.22% | 8.60% | 9.70% | 12.72% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AT&T Inc. | 19.16% | -3.80% | 13.83% | 3.73% | 15.43% | |
| Verizon Communications Inc. | 17.08% | 22.27% | 24.29% | 22.45% | 23.04% | |
| Operating Profit Margin, Sector | ||||||
| Telecommunication Services | 18.09% | 9.62% | 16.38% | 11.36% | 17.89% | |
| Operating Profit Margin, Industry | ||||||
| Communication Services | 22.22% | 16.70% | 22.45% | 16.35% | 19.85% | |
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).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 14,266 ÷ 78,558 = 18.16%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | T-Mobile US Inc. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Net Profit Margin
T-Mobile US Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AT&T Inc. | 11.76% | -7.06% | 11.89% | -3.01% | 7.67% | |
| Verizon Communications Inc. | 8.67% | 15.53% | 16.51% | 13.88% | 14.61% | |
| Net Profit Margin, Sector | ||||||
| Telecommunication Services | 10.25% | 4.54% | 11.81% | 4.26% | 10.23% | |
| Net Profit Margin, Industry | ||||||
| Communication Services | 16.68% | 11.47% | 18.71% | 11.50% | 14.63% | |
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).
1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,317 ÷ 78,558 = 10.59%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | T-Mobile US Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Return on Equity (ROE)
T-Mobile US Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AT&T Inc. | 13.94% | -8.74% | 12.07% | -3.20% | 7.55% | |
| Verizon Communications Inc. | 12.57% | 23.32% | 26.98% | 26.24% | 31.38% | |
| ROE, Sector | ||||||
| Telecommunication Services | 13.18% | 5.93% | 14.24% | 5.32% | 13.35% | |
| ROE, Industry | ||||||
| Communication Services | 18.94% | 13.32% | 20.34% | 11.50% | 15.27% | |
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).
1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 8,317 ÷ 64,715 = 12.85%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | T-Mobile US Inc. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Return on Assets (ROA)
T-Mobile US Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AT&T Inc. | 3.54% | -2.12% | 3.64% | -0.98% | 2.52% | |
| Verizon Communications Inc. | 3.05% | 5.60% | 6.02% | 5.62% | 6.60% | |
| ROA, Sector | ||||||
| Telecommunication Services | 3.45% | 1.54% | 4.02% | 1.51% | 3.94% | |
| ROA, Industry | ||||||
| Communication Services | 7.94% | 5.43% | 8.36% | 4.69% | 6.30% | |
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).
1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 8,317 ÷ 207,682 = 4.00%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | T-Mobile US Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |