T-Mobile US (NAS:TMUS) Financial Strength

: 4 (As of Sep. 2023)

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T-Mobile US has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

T-Mobile US's Interest Coverage for the quarter that ended in Sep. 2023 was 4.55. T-Mobile US's debt to revenue ratio for the quarter that ended in Sep. 2023 was 1.43. As of today, T-Mobile US's Altman Z-Score is 1.36.

Competitive Comparison

For the Telecom Services subindustry, T-Mobile US's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where T-Mobile US's Financial Strength falls into.

T-Mobile US Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

T-Mobile US's Interest Expense for the months ended in Sep. 2023 was $-790 Mil. Its Operating Income for the months ended in Sep. 2023 was $3,596 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $101,811 Mil.

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

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	3596	/	-790
	=	4.55

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

T-Mobile US's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Sep. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(8268	+	101811)	/	77008
	=	1.43

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

T-Mobile US has a Z-score of 1.36, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.36 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

T-Mobile US (NAS:TMUS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

T-Mobile US has the Financial Strength Rank of 4.

T-Mobile US Financial Strength Related Terms

Thank you for viewing the detailed overview of T-Mobile US's Financial Strength 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 » Financial Strength

Comparable Companies

Traded in Other Exchanges

TMUS:Peru TMUS:Mexico TM5:Germany TM5:Germany TM5:Germany TM5:Germany T1MU34:Brazil

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