Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

AT&T Inc. (NYSE:T)

Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

AT&T Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin 53.56% 53.49% 51.80% 53.06% 54.33%
Operating profit margin 15.43% 15.28% 13.05% 14.87% 16.88%
Net profit margin 7.67% 11.34% 18.34% 7.92% 9.09%
Return on Investment
Return on equity (ROE) 7.55% 10.52% 20.91% 10.54% 10.88%
Return on assets (ROA) 2.52% 3.64% 6.63% 3.21% 3.31%

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

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.’s gross profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. AT&T Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. AT&T Inc.’s net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. AT&T Inc.’s ROE deteriorated from 2017 to 2018 and from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. AT&T Inc.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Gross profit 97,052  91,337  83,167  86,902  79,755 
Operating revenues 181,193  170,756  160,546  163,786  146,801 
Profitability Ratio
Gross profit margin1 53.56% 53.49% 51.80% 53.06% 54.33%
Benchmarks
Gross Profit Margin, Competitors2
Verizon Communications Inc. 58.50% 57.58% 59.09% 59.18% 60.07%

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Operating revenues
= 100 × 97,052 ÷ 181,193 = 53.56%

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.’s gross profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Operating income 27,955  26,096  20,949  24,347  24,785 
Operating revenues 181,193  170,756  160,546  163,786  146,801 
Profitability Ratio
Operating profit margin1 15.43% 15.28% 13.05% 14.87% 16.88%
Benchmarks
Operating Profit Margin, Competitors2
Verizon Communications Inc. 23.04% 17.02% 21.75% 21.48% 25.12%
Operating Profit Margin, Sector
Fixed Line Telecommunications 18.63% 16.04% 16.88% 17.74% 20.78%
Operating Profit Margin, Industry
Telecommunications 17.89% 15.56% 16.28% 16.88% 19.30%

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Operating revenues
= 100 × 27,955 ÷ 181,193 = 15.43%

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.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to AT&T 13,903  19,370  29,450  12,976  13,345 
Operating revenues 181,193  170,756  160,546  163,786  146,801 
Profitability Ratio
Net profit margin1 7.67% 11.34% 18.34% 7.92% 9.09%
Benchmarks
Net Profit Margin, Competitors2
Verizon Communications Inc. 14.61% 11.87% 23.88% 10.42% 13.58%
Net Profit Margin, Sector
Fixed Line Telecommunications 10.59% 11.57% 20.78% 9.01% 11.21%
Net Profit Margin, Industry
Telecommunications 10.23% 10.95% 19.59% 8.43% 10.29%

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Net profit margin = 100 × Net income attributable to AT&T ÷ Operating revenues
= 100 × 13,903 ÷ 181,193 = 7.67%

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.’s net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Return on Equity (ROE)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to AT&T 13,903  19,370  29,450  12,976  13,345 
Stockholders’ equity attributable to AT&T 184,221  184,089  140,861  123,135  122,671 
Profitability Ratio
ROE1 7.55% 10.52% 20.91% 10.54% 10.88%
Benchmarks
ROE, Competitors2
Verizon Communications Inc. 31.38% 29.22% 69.85% 58.28% 108.83%
ROE, Sector
Fixed Line Telecommunications 13.50% 14.71% 32.37% 17.92% 22.45%
ROE, Industry
Telecommunications 13.35% 14.42% 31.03% 16.82% 20.53%

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
ROE = 100 × Net income attributable to AT&T ÷ Stockholders’ equity attributable to AT&T
= 100 × 13,903 ÷ 184,221 = 7.55%

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.’s ROE deteriorated from 2017 to 2018 and from 2018 to 2019.

Return on Assets (ROA)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to AT&T 13,903  19,370  29,450  12,976  13,345 
Total assets 551,669  531,864  444,097  403,821  402,672 
Profitability Ratio
ROA1 2.52% 3.64% 6.63% 3.21% 3.31%
Benchmarks
ROA, Competitors2
Verizon Communications Inc. 6.60% 5.86% 11.71% 5.38% 7.31%
ROA, Sector
Fixed Line Telecommunications 3.93% 4.38% 8.49% 4.03% 4.82%
ROA, Industry
Telecommunications 3.94% 4.35% 8.30% 3.86% 4.50%

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
ROA = 100 × Net income attributable to AT&T ÷ Total assets
= 100 × 13,903 ÷ 551,669 = 2.52%

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.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019.