Stock Analysis on Net

AT&T Inc. (NYSE:T)

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

AT&T Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Return on Sales
Gross profit margin 52.74% 53.47% 53.56% 53.49% 51.80%
Operating profit margin 13.83% 3.73% 15.43% 15.28% 13.05%
Net profit margin 11.89% -3.01% 7.67% 11.34% 18.34%
Return on Investment
Return on equity (ROE) 12.07% -3.20% 7.55% 10.52% 20.91%
Return on assets (ROA) 3.64% -0.98% 2.52% 3.64% 6.63%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. AT&T Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. AT&T Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. AT&T Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. AT&T Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
ROA A profitability ratio calculated as net income divided by total assets. AT&T Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Gross Profit Margin

AT&T Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Gross profit 89,057  91,840  97,052  91,337  83,167 
Operating revenues 168,864  171,760  181,193  170,756  160,546 
Profitability Ratio
Gross profit margin1 52.74% 53.47% 53.56% 53.49% 51.80%
Benchmarks
Gross Profit Margin, Competitors2
T-Mobile US Inc. 54.31% 58.67% 58.84% 57.62% 56.39%
Verizon Communications Inc. 57.86% 60.09% 58.50% 57.58% 59.09%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Operating revenues
= 100 × 89,057 ÷ 168,864 = 52.74%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. AT&T Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

AT&T Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating income 23,347  6,405  27,955  26,096  20,949 
Operating revenues 168,864  171,760  181,193  170,756  160,546 
Profitability Ratio
Operating profit margin1 13.83% 3.73% 15.43% 15.28% 13.05%
Benchmarks
Operating Profit Margin, Competitors2
T-Mobile US Inc. 8.60% 9.70% 12.72% 12.26% 12.04%
Verizon Communications Inc. 24.29% 22.45% 23.04% 17.02% 21.75%
Operating Profit Margin, Sector
Telecommunication Services 16.38% 11.36% 17.89% 15.56% 16.28%
Operating Profit Margin, Industry
Communication Services 22.19% 16.35% 19.50% 19.36% 20.23%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Operating revenues
= 100 × 23,347 ÷ 168,864 = 13.83%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. AT&T Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Net Profit Margin

AT&T Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T 20,081  (5,176) 13,903  19,370  29,450 
Operating revenues 168,864  171,760  181,193  170,756  160,546 
Profitability Ratio
Net profit margin1 11.89% -3.01% 7.67% 11.34% 18.34%
Benchmarks
Net Profit Margin, Competitors2
T-Mobile US Inc. 3.77% 4.48% 7.71% 6.67% 11.17%
Verizon Communications Inc. 16.51% 13.88% 14.61% 11.87% 23.88%
Net Profit Margin, Sector
Telecommunication Services 11.81% 4.26% 10.23% 10.95% 19.59%
Net Profit Margin, Industry
Communication Services 18.11% 11.06% 14.14% 15.73% 19.99%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Net profit margin = 100 × Net income (loss) attributable to AT&T ÷ Operating revenues
= 100 × 20,081 ÷ 168,864 = 11.89%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. AT&T Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Return on Equity (ROE)

AT&T Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T 20,081  (5,176) 13,903  19,370  29,450 
Stockholders’ equity attributable to AT&T 166,332  161,673  184,221  184,089  140,861 
Profitability Ratio
ROE1 12.07% -3.20% 7.55% 10.52% 20.91%
Benchmarks
ROE, Competitors2
T-Mobile US Inc. 4.38% 4.69% 12.05% 11.68% 20.11%
Verizon Communications Inc. 26.98% 26.24% 31.38% 29.22% 69.85%
ROE, Sector
Telecommunication Services 14.24% 5.32% 13.35% 14.42% 31.03%
ROE, Industry
Communication Services 20.34% 11.32% 14.89% 17.13% 22.80%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROE = 100 × Net income (loss) attributable to AT&T ÷ Stockholders’ equity attributable to AT&T
= 100 × 20,081 ÷ 166,332 = 12.07%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. AT&T Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Return on Assets (ROA)

AT&T Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T 20,081  (5,176) 13,903  19,370  29,450 
Total assets 551,622  525,761  551,669  531,864  444,097 
Profitability Ratio
ROA1 3.64% -0.98% 2.52% 3.64% 6.63%
Benchmarks
ROA, Competitors2
T-Mobile US Inc. 1.46% 1.53% 3.99% 3.99% 6.43%
Verizon Communications Inc. 6.02% 5.62% 6.60% 5.86% 11.71%
ROA, Sector
Telecommunication Services 4.02% 1.51% 3.94% 4.35% 8.30%
ROA, Industry
Communication Services 7.99% 4.45% 5.95% 6.85% 8.93%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROA = 100 × Net income (loss) attributable to AT&T ÷ Total assets
= 100 × 20,081 ÷ 551,622 = 3.64%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. AT&T Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.