AT&T Inc (T)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 19,049,000 | 23,461,000 | -4,587,000 | 25,897,000 | 8,372,000 |
| Total assets | US$ in thousands | 394,795,000 | 407,060,000 | 402,853,000 | 551,622,000 | 525,761,000 |
| Operating ROA | 4.83% | 5.76% | -1.14% | 4.69% | 1.59% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $19,049,000K ÷ $394,795,000K
= 4.83%
Based on the provided data, AT&T Inc's operating return on assets (operating ROA) has experienced fluctuations over the years:
1. As of December 31, 2020, the operating ROA stood at 1.59%. This indicates that for every dollar of assets, AT&T generated 1.59 cents in operating income.
2. By December 31, 2021, the operating ROA improved significantly to 4.69%, suggesting increased efficiency in generating operating income relative to its asset base.
3. However, by December 31, 2022, the operating ROA turned negative, registering at -1.14%. This negative figure implies that AT&T's operating income was insufficient to cover the assets employed in the business.
4. The following year, as of December 31, 2023, the operating ROA rebounded to 5.76%, indicating a strong performance in utilizing assets to generate operating income.
5. As of December 31, 2024, the operating ROA slightly decreased to 4.83%, still reflecting a relatively efficient use of assets to generate operating returns.
In summary, while AT&T experienced fluctuations in its operating ROA over the years, showing both improvements and setbacks, it is essential for stakeholders to monitor this metric to assess the company's operational efficiency and profitability relative to its asset base.
Peer comparison
Dec 31, 2024