AT&T Inc (T)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.82% | 33.07% | 70.98% | 57.10% | 54.75% |
| Operating profit margin | 19.16% | -3.80% | 19.32% | 5.85% | 15.43% |
| Pretax margin | 15.21% | -3.93% | 19.01% | -2.80% | 9.60% |
| Net profit margin | 11.76% | -7.06% | 14.98% | -3.62% | 7.67% |
The profitability ratios of AT&T, Inc. have shown fluctuations over the years. The gross profit margin has generally been stable, hovering between 52.74% and 59.06% over the last five years, indicating the company's ability to generate profit from its core operations.
The operating profit margin has shown an increasing trend, with a notable improvement from 14.72% in 2020 to 20.14% in 2023. This suggests that AT&T has been able to control its operating expenses more effectively and improve its operational efficiency.
The pretax margin has been volatile, ranging from negative figures in 2020 and 2022 to positive percentages in other years. This indicates fluctuating levels of profitability before accounting for taxes and suggests that the company has faced challenges in certain periods.
The net profit margin, which reflects the percentage of revenue that translates into net income, has also varied significantly. The negative net profit margin in 2020 and 2022 is concerning, but the positive margins in other years show improvements in profitability.
Overall, while AT&T has shown improvements in its operating and net profit margins in recent years, the company still faces challenges in maintaining consistent profitability. Monitoring and managing expenses closely will be crucial for sustaining and improving profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.76% | -1.14% | 4.69% | 1.59% | 5.07% |
| Return on assets (ROA) | 3.54% | -2.12% | 3.64% | -0.98% | 2.52% |
| Return on total capital | 24.52% | 1.40% | 19.35% | 2.30% | 14.01% |
| Return on equity (ROE) | 13.94% | -8.74% | 12.07% | -3.20% | 7.55% |
AT&T, Inc.'s profitability ratios have shown fluctuations over the past five years. The operating return on assets (Operating ROA) has improved steadily from 5.33% in 2019 to 6.06% in 2023, indicating the company's ability to generate operating profits from its assets has been strengthening.
On the other hand, the return on assets (ROA) was negative in 2022 but recovered to 3.49% in 2023, suggesting that AT&T has become more efficient in generating profits relative to its total assets. The return on total capital has shown a somewhat consistent upward trend, reaching 10.94% in 2023, indicating that the company is effectively utilizing its total capital to generate returns for its investors.
Lastly, the return on equity (ROE) also experienced significant fluctuations, with negative returns in 2020 and 2022, but rebounded to 13.74% in 2023. This indicates that AT&T's profitability for its shareholders has improved and the company is generating a favorable return on the equity invested in the business.
Overall, despite some fluctuations, AT&T's profitability ratios have generally shown an improving trend, suggesting better operational efficiency and profitability over the past five years.