AT&T Inc (T)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 25,329,000 | -973,000 | 1,070,000 | 738,000 | 1,364,000 | 31,006,000 | 31,493,000 | 28,686,000 | 32,352,000 | 10,722,000 | 7,435,000 | 7,331,000 | 3,719,000 | 22,618,000 | 23,784,000 | 26,488,000 | 25,818,000 | 28,526,000 | 29,966,000 | 31,692,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 103,297,000 | 103,703,000 | 101,903,000 | 99,396,000 | 97,500,000 | 122,406,000 | 117,746,000 | 169,036,000 | 166,332,000 | 163,771,000 | 162,296,000 | 165,488,000 | 161,673,000 | 175,553,000 | 175,896,000 | 177,779,000 | 184,221,000 | 183,049,000 | 184,257,000 | 185,112,000 |
| Return on total capital | 24.52% | -0.94% | 1.05% | 0.74% | 1.40% | 25.33% | 26.75% | 16.97% | 19.45% | 6.55% | 4.58% | 4.43% | 2.30% | 12.88% | 13.52% | 14.90% | 14.01% | 15.58% | 16.26% | 17.12% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $25,329,000K ÷ ($—K + $103,297,000K)
= 24.52%
AT&T, Inc.'s return on total capital has shown a generally positive trend over the past eight quarters. The company's return on total capital increased from 7.23% in Q1 2022 to 10.94% in Q4 2023, indicating a consistent improvement in its efficiency in generating profits from its total capital employed.
The return on total capital remained relatively stable around the 10% range for the most recent quarters, with slight fluctuations between 10.52% and 10.94%. This stability suggests that AT&T has been effectively utilizing its capital to generate returns for its shareholders.
Overall, the upward trend observed in AT&T's return on total capital reflects positively on the company's ability to create value from its investment in assets and operations. It indicates a consistent performance in generating profits relative to the total capital employed by the company.
Peer comparison
Dec 31, 2023