AT&T Inc (T)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	14,400,000	-8,524,000	20,081,000	-5,176,000	13,903,000
Total stockholders’ equity	US$ in thousands	103,297,000	97,500,000	166,332,000	161,673,000	184,221,000
ROE		13.94%	-8.74%	12.07%	-3.20%	7.55%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $14,400,000K ÷ $103,297,000K
= 13.94%

AT&T, Inc.'s return on equity (ROE) has shown variability over the past five years. In 2023, the ROE improved to 13.74%, indicating that the company generated $13.74 in net income for every dollar of shareholders' equity. This increase is a positive sign of improved profitability and efficiency in utilizing shareholder funds.

The negative ROE of -8.95% in 2022 suggests that AT&T, Inc. incurred a loss relative to its shareholders' equity during that year. However, the company managed to rebound in 2021 with an ROE of 11.95%, indicating a better return on equity compared to the previous year.

The negative ROE in 2020 (-3.32%) and the positive ROE in 2019 (7.55%) also show fluctuations in the company's profitability and efficiency in generating returns for its shareholders during those respective periods.

Overall, while AT&T, Inc. experienced some variability in its ROE over the five-year period, the positive ROE in 2023 reflects an improvement in the company's ability to generate profits relative to the shareholders' equity, which is a favorable indicator for investors.