AT&T Inc (T)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 19,049,000 | 25,329,000 | 1,364,000 | 32,192,000 | 3,719,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 104,372,000 | 103,297,000 | 97,500,000 | 166,332,000 | 161,673,000 |
| Return on total capital | 18.25% | 24.52% | 1.40% | 19.35% | 2.30% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $19,049,000K ÷ ($—K + $104,372,000K)
= 18.25%
AT&T Inc's return on total capital has displayed significant fluctuations over the period under consideration. In December 2020, the return on total capital was reported at 2.30%, indicating relatively low efficiency in generating profits from the total capital employed. However, there was a notable improvement by December 2021, with the return on total capital soaring to 19.35%, reflecting a substantial increase in profitability relative to the capital invested.
The performance dipped in December 2022, with the return on total capital decreasing to 1.40%, signaling a decline in the company's ability to generate returns from its total capital. Nevertheless, there was a sharp recovery in December 2023, as the return on total capital surged to 24.52%, reaching a peak during the period analyzed. This spike suggests a significant enhancement in the company's profitability and capital efficiency.
By December 2024, the return on total capital for AT&T Inc stood at 18.25%, showcasing a solid performance in generating returns from the capital employed, although slightly lower compared to the peak in 2023. Overall, the fluctuations in AT&T Inc's return on total capital indicate varying levels of capital efficiency and profitability during the period, with the company experiencing both improvements and temporary setbacks.
Peer comparison
Dec 31, 2024