T-Mobile US (NAS:TMUS) Interest Coverage

: 4.43 (As of Jun. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. T-Mobile US's Operating Income for the three months ended in Jun. 2023 was $3,810 Mil. T-Mobile US's Interest Expense for the three months ended in Jun. 2023 was $-861 Mil. T-Mobile US's interest coverage for the quarter that ended in Jun. 2023 was 4.43. The higher the ratio, the stronger the company's financial strength is.

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

TMUS' s Interest Coverage Range Over the Past 10 Years
Min: 0.65 Med: 2.24 Max: 5.04
Current: 3.67

TMUS's Interest Coverage is ranked worse than
61.79% of 301 companies
in the Telecommunication Services industry
Industry Median: 5.17 vs TMUS: 3.67

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

T-Mobile US Interest Coverage Historical Data

The historical data trend for T-Mobile US's Interest Coverage 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 Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

3.91

5.04

2.61

2.06

2.41

T-Mobile US Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Interest Coverage																1.39	2.84	3.36	4.02	4.43

Competitive Comparison

For the Telecom Services subindustry, T-Mobile US's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Annual Data Quarterly Data

T-Mobile US Interest Coverage Distribution

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

* The bar in red indicates where T-Mobile US's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

T-Mobile US Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

T-Mobile US's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, T-Mobile US's Interest Expense was $-3,364 Mil. Its Operating Income was $8,107 Mil. And its Long-Term Debt & Capital Lease Obligation was $98,021 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	8107	/	-3364
	=	2.41

T-Mobile US's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, T-Mobile US's Interest Expense was $-861 Mil. Its Operating Income was $3,810 Mil. And its Long-Term Debt & Capital Lease Obligation was $100,448 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	3810	/	-861
	=	4.43

The higher the ratio, the stronger the company's Financial Strength is.

T-Mobile US (NAS:TMUS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

T-Mobile US Interest Coverage Related Terms

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

T-Mobile US (NAS:TMUS) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

TMUS:Peru TMUS:Mexico 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

James J Kavanaugh	director	IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Nestor Cano	officer: EVP, Transformation and CIDO
Andre Almeida	director	C/O T-MOBILE US, INC, 12920 SE 38TH STREET, BELLEVUE WA 98006
Ulf Ewaldsson	officer: President, Technology	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
Mark Wolfe Nelson	officer: EVP and General Counsel	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006-1350
Softbank Group Corp	director	1-7-1 KAIGAN, MINATO-KU, TOKYO M0 105-7537
Delaware Project 6 L.l.c.	director	ONE CIRCLE STAR WAY, SAN CARLOS CA 94070
Letitia A Long	director	C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Bavan Holloway	director	8501 NORTH SCOTTSDALE ROAD, SUITE 100, SCOTTSDALE AZ 85253
Dow Draper	officer: EVP, Emerging Products	1475 120TH AVE NE, BELLEVUE WA 98005
Jon Freier	officer: EVP, Consumer Markets	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006-1350
Michael J. Katz	officer: EVP, T-Mobile for Business	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006-1350
Dominique Leroy	director	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006
Michael Wilkens	director	C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006