The business behind the dividend
| Measure | TMUS | Median | Formula |
|---|---|---|---|
| Return on equity | 18.6% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 13.0% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $14.54bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $18.00bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 20.7% | 15.0% | Operating income ÷ revenue |
| Net margin | 12.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.37x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 4.71x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.00x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.54x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 18.6% | 18.4% | 12.9% | 3.7% | 4.4% | 4.7% | 12.0% | 11.7% | 20.1% | 8.0% | 11.7% |
| Return on capital employed | 13.0% | 13.2% | 10.5% | 4.6% | 4.9% | 5.0% | 14.4% | 14.1% | 13.5% | 10.0% | 10.5% |
| Operating margin | 20.7% | 22.1% | 18.2% | 8.2% | 8.6% | 9.7% | 12.7% | 12.3% | 12.0% | 10.8% | 12.0% |
| Net margin | 12.4% | 13.9% | 10.6% | 3.3% | 3.8% | 4.5% | 7.7% | 6.7% | 11.2% | 3.9% | 6.7% |
| Debt to equity | 1.37x | 1.20x | 1.10x | 1.03x | 1.02x | 1.02x | 0.38x | 0.52x | 0.61x | 1.22x | 1.02x |
| Current ratio | 1.00x | 0.91x | 0.91x | 0.77x | 0.89x | 1.10x | 0.74x | 0.81x | 0.77x | 1.58x | 0.89x |
| Cash conversion | 2.54x | 1.97x | 2.23x | 6.48x | 4.60x | 2.82x | 1.97x | 1.35x | 0.84x | 1.90x | 1.97x |
How it compares in communications
Among the 25 communications companies here measured on free cash flow, T-Mobile US pays out less than 15 of them. The median for that group is 28.4%, against this company’s 22.9%.
Closest on free cash flow
- Iridium Communications (IRDM) 21.0%
- Comcast (CMCSA) 22.4%
- iOThree (IOTR) 23.9%
- News (NWSA) 25.2%
Same sector and same denominator, so the figures are comparable. All 31 in communications →