What is the net debt of T Mobile?
What Is T-Mobile US's Debt? The image below, which you can click on for greater detail, shows that at June 2023 T-Mobile US had debt of US$77.9b, up from US$71.0b in one year. However, because it has a cash reserve of US$6.65b, its net debt is less, at about US$71.2b.
The debt/equity ratio can be defined as a measure of a company's financial leverage calculated by dividing its long-term debt by stockholders' equity. T-Mobile US debt/equity for the three months ending December 31, 2023 was 1.18.
Cash on Hand as of December 2023 : $5.13 B
According to T-Mobile US's latest financial reports the company has $5.13 B in cash and cash equivalents. A company's cash on hand also refered as cash/cash equivalents (CCE) and Short-term investments, is the amount of accessible money a business has.
T-Mobile US's interest coverage ratio for fiscal years ending December 2019 to 2023 averaged 4.2x. T-Mobile US's operated at median interest coverage ratio of 4.0x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, T-Mobile US's interest coverage ratio peaked in December 2019 at 5.6x.
TMUS's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 6.92%.
Analysis. T-Mobile US's net debt / ebitda for fiscal years ending December 2019 to 2023 averaged 3.1x. T-Mobile US's operated at median net debt / ebitda of 3.2x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, T-Mobile US's net debt / ebitda peaked in December 2020 at 3.4x.
Generally, a good debt to equity ratio is around 1 to 1.5. However, the ideal debt to equity ratio will vary depending on the industry, as some industries use more debt financing than others.
T-Mobile aims to sign up 7 to 8 million 5G fixed broadband subscribers by 2025, with services available to about 40 million US. households. On the enterprise side, private 5G network services are expected to drive new business uses.
T-Mobile US has a market cap or net worth of $191.30 billion as of March 26, 2024. Its market cap has increased by 10.13% in one year.
T-Mobile US net income for the twelve months ending December 31, 2023 was $8.317B, a 221.12% increase year-over-year. T-Mobile US annual net income for 2023 was $8.317B, a 221.12% increase from 2022. T-Mobile US annual net income for 2022 was $2.59B, a 14.35% decline from 2021.
Is T Mobile raising rates?
Meanwhile, T-Mobile's most recently confirmed price hike doesn't impact cell phone plans. Last month, they bumped up the price of home internet for new customers from $50 to $60, CNET reported. However, late last year, T-Mobile starting prompting a test group of customers to switch to more expensive plans.
While an interest coverage ratio of 1.5 may be the minimum acceptable level, two or better is preferred for analysts and investors. For companies with historically more volatile revenues, the interest coverage ratio may not be considered good unless it is well above three.
The general rule is that the higher the ratio, the better position a company has to repay its interest obligations while lower ratios point to financial instability. Analysts generally look for ratios of at least two (2) while three (3) or more is preferred.
| T-Mobile Go5g | |
|---|---|
| 1 Line | $80.00 |
| 2 Lines | $70.00 |
| 3 Lines | $56.67 |
| 4 Lines | $50.00 |
| Cost Category | Estimated Amount |
|---|---|
| Store Buildout | $100,000-$250,000 |
| Inventory | $30,000 |
| Depreciation and amortization | $16,000-$17,000 |
| Total Operating Expenses | $40,000-$74,000 |
- T-Mobile account number, which can be located on the Account tab in the T-Mobile app, in your account online, or on your paper bill.
- Payee name: T-Mobile.
- Payment address: T-Mobile. P.O. Box 742596. Cincinnati, OH 45274-2596.
AT&T has a total shareholder equity of $119.4B and total debt of $138.3B, which brings its debt-to-equity ratio to 115.8%. Its total assets and total liabilities are $407.1B and $287.6B respectively. AT&T's EBIT is $26.2B making its interest coverage ratio 3.9. It has cash and short-term investments of $6.8B.
AT&T's net debt / ebitda for fiscal years ending December 2019 to 2023 averaged 3.2x. AT&T's operated at median net debt / ebitda of 3.3x from fiscal years ending December 2019 to 2023.
Generally, net debt-to-EBITDA ratios of less than 3 are considered acceptable. The lower the ratio, the higher the probability of the firm successfully paying and refinancing its debt.
| Generation | Average total debt (2023) | Average total debt (2022) |
|---|---|---|
| Gen Z (18-26) | $29,820 | $25,851 |
| Millenial (27-42) | $125,047 | $115,784 |
| Gen X (43-57) | $157,556 | $154,658 |
| Baby Boomer (58-77) | $94,880 | $96,087 |
How much debt is too much?
Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.
A general rule of thumb is to keep your overall debt-to-income ratio at or below 43%. This is seen as a wise target because it's the maximum debt-to-income ratio at which you're eligible for a Qualified Mortgage —a type of home loan designed to be stable and borrower-friendly.
T-Mobile achieved adjusted FCF of $4.3 billion in Q4, up 97% from 2022's $2.2 billion as costs related to its 2020 merger with Sprint declined nearly 80% from the prior year. Its FCF results are more important than ever for investors because the company implemented a dividend toward the end of 2023.
T-Mobile is the brand of telecommunications by Deutsche Telekom.
Consensus long-term analyst estimates call for Verizon to grow its earnings by just 1% to 2% annually, versus over 20% for T-Mobile. Strong customer growth and lighter financial baggage have set the company up for robust earnings expansion. T-Mobile is the obvious choice for any investors looking for total returns.
