Thread regarding T-Mobile layoffs

Analyzing the financial position of T-Mobile US further, it is noteworthy that the firm holds a debt-to-equity ratio of 1.14—an indicator of leverage used by a company in financing its operations through borrowings versus shareholder equity contributions. With a current ratio of 0.82 and quick ratio of 0.77, T-Mobile US demonstrates its ability to meet short-term financial obligations.

If it increases the risk, the rating agencies would have downgraded them, not upgraded them twice. Free cash flow is increasing the company is way less levered than it was as standalone. Calculating leverage based on subs is one of the d-mbest things I’ve seen on this site and there’s been a lot of d-mb things lately.

Can you tell me what the net leverage ratio has done over the past four years?

I really hope you don’t have a corporate job with this level of understanding, and if you do that you’re on the list.

It’s funny how someone is starting that people are ignorant on finances. Let’s state some facts. In the beginning of 2020, T-Mobile had 30 billion in debt and 50 million subscribers. Currently they have 70 billion in debt and 100 million subscribers. The question really should be, did TMO leverage the debt properly. Was it worth it. At the end of the day, it increases risk and decreases flexibility. It takes away from the equity position. The answer to this question is subjective and time will tell. When calling people, know what you’re talking about.

a lot of the debt was pushed off and is coming due and will be for the next 10 years. T-Mobile made a mistake in purchasing sprint as when you purchase, you put yourself in debt and though T-Mobile is profitable each quarter, it's not profitable enough to cover this debt. well.... it is, but not without taking a loss on stock. Therefore, T-Mobile needs to make more profit to keep stock growing, thus, layoffs.

People with no knowledge of finance really need to avoid posting about these things. It’s embarrassing. Some of you should take advantage of the tuition credit to take some business classes.

There is nothing wrong with the capital structure. T-Mobile has been deleveraging and its credit rating has been upgraded multiple times since the merger closed.

The Price/Earnings (P/E) multiple is too high for TMUS stock.

Sell your shares.

Because a lot of that debt was from allocating Sprint and its debt. They did that because they got all of Sprint's midband spectrum for 5G, and seeing how much ATT and Verizon paid for their C-band and inferior midband spectrum, T-Mobile got off relatively cheap.

Not defending T-Mobile's layoff practices, but explaining that your stats don't tell the whole story.

Interesting. I wonder when the next gigantic payment is due? Now?

Companies need to carry debt to avoid takeovers and it’s an accounting thang.