AT&T Inc (T)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Operating income (ttm) US$ in thousands 19,049,000 18,994,000 22,660,000 23,306,000 23,461,000 -2,902,000 -2,672,000 -4,122,000 -4,587,000 21,399,000 21,624,000 24,240,000 25,897,000 12,225,000 12,120,000 8,080,000 8,372,000 22,471,000 24,240,000 28,208,000
Total assets US$ in thousands 394,795,000 393,719,000 398,026,000 399,428,000 407,060,000 406,698,000 408,453,000 400,873,000 402,853,000 426,463,000 426,433,000 577,195,000 551,622,000 547,107,000 544,710,000 546,985,000 525,761,000 538,553,000 547,898,000 545,354,000
Operating ROA 4.83% 4.82% 5.69% 5.83% 5.76% -0.71% -0.65% -1.03% -1.14% 5.02% 5.07% 4.20% 4.69% 2.23% 2.23% 1.48% 1.59% 4.17% 4.42% 5.17%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $19,049,000K ÷ $394,795,000K
= 4.83%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating profits from its assets used in operations. Analyzing the data for AT&T Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the operating ROA over the period.

- The ratio started at 5.17% on March 31, 2020, showing a moderate level of profitability from its assets.
- There was a slight decrease to 4.42% by June 30, 2020, followed by a further decline to 1.59% by December 31, 2020, signaling a decrease in profitability relative to assets employed.
- The trend continued into the first half of 2021, with operating ROA standing at 1.48% on March 31, 2021, showing a need for improved asset efficiency.
- However, there was a notable increase to 5.07% by June 30, 2022, indicating a significant improvement in profitability from assets.
- The ratio experienced fluctuations in the following periods but generally maintained a positive range, ranging from -1.14% on December 31, 2022, to 5.83% on March 31, 2024.
- The ratio reached a peak of 5.83% on March 31, 2024, showcasing a strong performance in generating profits from assets.
- It then slightly decreased to 4.83% by December 31, 2024, which is still a commendable level, indicating effective asset utilization.

In conclusion, AT&T Inc's operating ROA fluctuated over the period, showing some periods of improved asset efficiency and profitability, while also experiencing some decline. Monitoring and analyzing this ratio can help stakeholders assess the company's ability to generate earnings from its operational assets.