Market Cap : 160.36 B | Enterprise Value : 254.19 B | PE Ratio : 46.23 | PB Ratio : 2.46 |
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T-Mobile US's gross profit for the three months ended in Dec. 2020 was $10,689 Mil. T-Mobile US's gross profit for the trailing twelve months (TTM) ended in Dec. 2020 was $40,131 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. T-Mobile US's gross profit for the three months ended in Dec. 2020 was $10,689 Mil. T-Mobile US's Revenue for the three months ended in Dec. 2020 was $20,341 Mil. Therefore, T-Mobile US's Gross Margin % for the quarter that ended in Dec. 2020 was 52.55%.
T-Mobile US had a gross margin of 52.55% for the quarter that ended in Dec. 2020 => Durable competitive advantage
During the past 13 years, the highest Gross Margin % of T-Mobile US was 58.93%. The lowest was 47.88%. And the median was 57.01%.
* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.
* The bar in red indicates where T-Mobile US's Gross Profit falls into.
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
T-Mobile US's Gross Profit for the fiscal year that ended in Dec. 2020 is calculated as
Gross Profit (A: Dec. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 68397 | - | 28266 | |
= | 40,131 |
T-Mobile US's Gross Profit for the quarter that ended in Dec. 2020 is calculated as
Gross Profit (Q: Dec. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 20341 | - | 9652 | |
= | 10,689 |
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2020 was 6945 (Mar. 2020 ) + 10906 (Jun. 2020 ) + 11591 (Sep. 2020 ) + 10689 (Dec. 2020 ) = $40,131 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
T-Mobile US's Gross Margin % for the quarter that ended in Dec. 2020 is calculated as
Gross Margin % (Q: Dec. 2020 ) | = | Gross Profit (Q: Dec. 2020 ) | / | Revenue (Q: Dec. 2020 ) |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | 10,689 | / | 20341 | |
= | 52.55 % |
* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
T-Mobile US had a gross margin of 52.55% for the quarter that ended in Dec. 2020 => Durable competitive advantage
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