T-Mobile US (NASDAQ:TMUS); Stocks under Profitability Radar- Broadcom Limited (NASDAQ:AVGO)

T-Mobile US, Inc. (NASDAQ:TMUS) also making a luring appeal, share price swings at $57.46 with percentage change of -2.18% in most recent trading session.

According to a recent report by The Wall Street Journal, U.S. national wireless carrier T-Mobile US Inc. TMUS reported that it is planning to eradicate all additional fees and taxes on its unlimited data plans at a press event held in Las Vegas on Jan 5. The company further added that the plan will be put into action later this month. T-Mobile US also launched a new program, KickBack, in which the company will pay back the unused data amount to their consumers. Also, consumers who use 2 gigabytes or less per month will be given $10 as credit on their next month’s bill.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 3.70% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 56.90% and 10.50% respectively. Moving toward returns ratio, TMUS has returns on investment of 4.00% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 2.10% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 7.60%, which is measuring a corporation’s profitability by revealing how much profit generates by TMUS with the shareholders’ money. The firm attains analyst recommendation of 2.00 on scale of 1-5 with week’s performance of -2.31%.

Moving toward ratio analysis, it has current ratio of 1.70 and quick ratio was calculated as 1.50. The debt to equity ratio appeared as 1.70 for seeing its liquidity position. The firm attains analyst recommendation of 2.00 out of 1-5 scale with week’s performance of -2.31%.

Moving on tracing line, Broadcom Limited (NASDAQ:AVGO) need to consider for profitability analysis, in latest session share price swings at $179.42 with percentage change of -0.64%.

The Co has negative -13.10% profit margins to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 45.30% and -4.00% respectively. AVGO has returns on investment of -3.60%. The returns on assets was -4.30% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -11.00%, which is measuring profitability by disclosing how much profit generates by AVGO with the shareholders’ money.

The firm attains analyst recommendation of 1.70 on scale of 1-5 with week’s performance of 1.33%. The firm current ratio calculated as 2.30, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 1.90, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.72, sometimes its remain same with long term debt to equity ratio.

 

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