AT&T Inc (T)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 25,329,000 | 1,364,000 | 32,192,000 | 3,719,000 | 25,818,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 103,297,000 | 97,500,000 | 166,332,000 | 161,673,000 | 184,221,000 |
| Return on total capital | 24.52% | 1.40% | 19.35% | 2.30% | 14.01% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $25,329,000K ÷ ($—K + $103,297,000K)
= 24.52%
AT&T, Inc.'s return on total capital has been relatively stable over the past five years, with a slight increase from 8.47% in 2019 to 10.94% in 2023. This indicates that the company has been effectively utilizing its total capital to generate profits for its stakeholders. The consistent performance in this ratio reflects AT&T's ability to generate returns from both its debt and equity investments. Investors and creditors often view a higher return on total capital favorably as it signifies efficient use of resources and potential for future growth. Overall, the trend in AT&T's return on total capital highlights the company's financial health and operational efficiency over the years.
Peer comparison
Dec 31, 2023