T-Mobile US (T-Mobile US) Gross Margin % : 58.98% (As of Dec. 2023)

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What is T-Mobile US Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. T-Mobile US's Gross Profit for the three months ended in Dec. 2023 was $12,078 Mil. T-Mobile US's Revenue for the three months ended in Dec. 2023 was $20,478 Mil. Therefore, T-Mobile US's Gross Margin % for the quarter that ended in Dec. 2023 was 58.98%.

The historical rank and industry rank for T-Mobile US's Gross Margin % or its related term are showing as below:

TMUS' s Gross Margin % Range Over the Past 10 Years
Min: 47.88 Med: 56.12 Max: 61.57
Current: 61.57

During the past 13 years, the highest Gross Margin % of T-Mobile US was 61.57%. The lowest was 47.88%. And the median was 56.12%.

TMUS's Gross Margin % is ranked better than
68.64% of 354 companies
in the Telecommunication Services industry
Industry Median: 48.98 vs TMUS: 61.57

T-Mobile US had a gross margin of 58.98% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for T-Mobile US was 0.10% per year.

T-Mobile US Gross Margin % Historical Data

The historical data trend for T-Mobile US's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

T-Mobile US Gross Margin % Chart

T-Mobile US Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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58.84

58.67

54.31

54.50

61.57

T-Mobile US Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															57.23	61.04	63.51	62.94	58.98

Competitive Comparison of T-Mobile US's Gross Margin %

For the Telecom Services subindustry, T-Mobile US's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

T-Mobile US's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, T-Mobile US's Gross Margin % distribution charts can be found below:

* The bar in red indicates where T-Mobile US's Gross Margin % falls into.

T-Mobile US Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

T-Mobile US's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	48370	/	78558
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(78558 - 30188)	/	78558
	=	61.57 %

T-Mobile US's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	12078	/	20478
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20478 - 8400)	/	20478
	=	58.98 %

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.

T-Mobile US (NAS:TMUS) Gross Margin % Explanation

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 58.98% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

T-Mobile US Gross Margin % Related Terms

Thank you for viewing the detailed overview of T-Mobile US's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

T-Mobile US (T-Mobile US) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » T-Mobile US Inc (NAS:TMUS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TMUS:Peru TMUS:Mexico 1TMUS:Italy TM5d:UK TM5:Germany TM5:Germany TM5:Germany TM5:Germany T1MU34:Brazil TMUS:Austria

Address

12920 SE 38th Street, Bellevue, WA, USA, 98006-1350

Website

https://www.t-mobile.com

Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, creating T-Mobile us. Following the merger, the firm provided nationwide service in major markets but spottier coverage elsewhere. T-Mobile spent aggressively on low-frequency spectrum, well suited to broad coverage, and has substantially expanded its geographic footprint. This expansion, coupled with aggressive marketing and innovative offerings, produced rapid customer growth. With the Sprint acquisition, the firm's scale now roughly matches its larger rivals: T-Mobile now serves 73 million postpaid and 21 million prepaid phone customers, equal to around 30% of the U.S. retail wireless market. In addition, the firm provides wholesale service to resellers.

Executives

Telekom Ag Deutsche	director, 10 percent owner	FRIEDERICH EBERT ALLEE 140, D 53113 BONN GERMANY I8
Deeanne King	officer: EVP, Human Resources	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006
Dara Bazzano	officer: SVP & Chief Accounting Officer	100 NORTH SEPULVEDA BLVD., SUITE 1100, EL SEGUNDO CA 90245
Nestor Cano	officer: EVP, Transformation and CIDO
Michael J. Katz	officer: EVP, T-Mobile for Business	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006-1350
G Michael Sievert	officer: Chief Operating Officer	1715 NORTH WESTSHORE BOULEVARD, SUITE 650, TAMPA FL 33607
Srikant Datar	director	ICF INTERNATIONAL, INC., 9300 LEE HIGHWAY, FAIRFAX VA 22031
Ulf Ewaldsson	officer: President, Technology	C/O T-MOBILE US, INC, 12920 SE 38TH STREET, BELLEVUE WA 98006
Jon Freier	officer: EVP, Consumer Markets	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006-1350
James J Kavanaugh	director	IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Andre Almeida	director	C/O T-MOBILE US, INC, 12920 SE 38TH STREET, BELLEVUE WA 98006
Raul Marcelo Claure	director	2010 NW 84 AVENUE, MIAMI FL 33122
Neville R Ray	officer: EVP & Chief Technology Officer	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006
Peter Osvaldik	officer: SVP, Finance & CAO	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006
Callie R Field	officer: President, Business Group	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006