AT&T Inc (T)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 23,461,000 | -4,587,000 | 25,897,000 | 8,372,000 | 27,955,000 |
| Total assets | US$ in thousands | 407,060,000 | 402,853,000 | 551,622,000 | 525,761,000 | 551,669,000 |
| Operating ROA | 5.76% | -1.14% | 4.69% | 1.59% | 5.07% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $23,461,000K ÷ $407,060,000K
= 5.76%
AT&T, Inc.'s operating return on assets (operating ROA) has exhibited a positive trend in recent years. The operating ROA increased from 5.33% in 2019 to 6.06% in 2023. This indicates that the company has been effectively generating operating income relative to its total assets over this period. The gradually rising trend suggests improvements in operational efficiency and profitability.
The average operating ROA for the five-year period is 5.60%. This suggests that, on average, AT&T has been able to generate operating income equivalent to 5.60% of its total assets annually during this period. A higher operating ROA indicates that the company is utilizing its assets efficiently to generate profits from its operations.
Overall, the increasing trend in operating ROA is a positive indicator of AT&T's operational performance and efficiency in utilizing its assets to generate returns. However, it is important to consider other financial metrics and external factors when evaluating the company's overall financial health and performance.
Peer comparison
Dec 31, 2023