AT&T Inc (T)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.43% | 53.82% | 33.07% | 70.98% | 57.10% |
| Operating profit margin | 15.57% | 19.16% | -3.80% | 19.32% | 5.85% |
| Pretax margin | 12.58% | 15.21% | -3.93% | 19.01% | -2.80% |
| Net profit margin | 8.95% | 11.76% | -7.06% | 14.98% | -3.62% |
AT&T Inc has shown varying levels of profitability over the years based on the provided data. The gross profit margin has fluctuated, ranging from a high of 70.98% in December 31, 2021, to a low of 33.07% in December 31, 2022. This indicates changes in the company's ability to generate revenue after accounting for the cost of goods sold.
The operating profit margin also exhibits significant variability, with a negative operating profit margin of -3.80% in December 31, 2022, to a high of 19.32% in December 31, 2021. This suggests fluctuations in the company's ability to control operating expenses and generate profits from its core operations.
Similarly, the pretax margin has shown inconsistencies, with a negative margin of -3.93% in December 31, 2022, to a positive margin of 19.01% in December 31, 2021. This metric reflects AT&T's ability to manage taxes and generate profits before tax implications.
Lastly, the net profit margin has also varied, ranging from a negative margin of -7.06% in December 31, 2022, to a positive margin of 14.98% in December 31, 2021. This metric indicates AT&T's overall ability to translate revenues into net income after accounting for all expenses, including taxes and interest.
Overall, AT&T Inc's profitability ratios have demonstrated fluctuation over the years, reflecting changes in the company's operational efficiency and financial performance. Further analysis and consideration of external factors may be required to fully understand the drivers behind these changes.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.83% | 5.76% | -1.14% | 4.69% | 1.59% |
| Return on assets (ROA) | 2.77% | 3.54% | -2.12% | 3.64% | -0.98% |
| Return on total capital | 18.25% | 24.52% | 1.40% | 19.35% | 2.30% |
| Return on equity (ROE) | 10.49% | 13.94% | -8.74% | 12.07% | -3.20% |
Based on the provided data, we can analyze the profitability ratios of AT&T Inc as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for AT&T Inc has shown variability over the years. It increased from 1.59% in 2020 to 5.76% in 2023 before slightly decreasing to 4.83% in 2024. However, there was a significant decline to -1.14% in 2022, indicating a period of underperformance.
2. Return on Assets (ROA):
- The ROA reflects the company's overall ability to generate profits from its assets. AT&T Inc's ROA improved from -0.98% in 2020 to 3.54% in 2023 before settling at 2.77% in 2024. The negative figure in 2020 indicates a period of inefficiency in asset utilization.
3. Return on Total Capital:
- Return on Total Capital measures the return generated on the total invested capital, including both debt and equity. AT&T Inc's return on total capital fluctuated significantly, ranging from 1.40% in 2022 to a high of 24.52% in 2023. This indicates varying levels of efficiency in utilizing the company's total capital structure.
4. Return on Equity (ROE):
- ROE represents the return earned on shareholder equity. AT&T Inc's ROE also demonstrated fluctuation, starting at -3.20% in 2020, reaching 13.94% in 2023, and then stabilizing at 10.49% in 2024. The negative ROE in 2020 suggests a period of financial loss attributable to shareholders' equity.
In summary, AT&T Inc's profitability ratios have shown mixed trends over the years, with improvements in some areas and fluctuations in others. It is important for stakeholders to closely monitor these ratios to assess the company's financial performance and sustainability.