Stock Analysis on Net
Stock Analysis on Net

AT&T Inc. (NYSE:T)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

AT&T Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 13.94% = 3.54% × 3.94
Dec 31, 2022 -8.74% = -2.12% × 4.13
Dec 31, 2021 12.07% = 3.64% × 3.32
Dec 31, 2020 -3.20% = -0.98% × 3.25
Dec 31, 2019 7.55% = 2.52% × 2.99

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Three-Component Disaggregation of ROE

AT&T Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 13.94% = 11.76% × 0.30 × 3.94
Dec 31, 2022 -8.74% = -7.06% × 0.30 × 4.13
Dec 31, 2021 12.07% = 11.89% × 0.31 × 3.32
Dec 31, 2020 -3.20% = -3.01% × 0.33 × 3.25
Dec 31, 2019 7.55% = 7.67% × 0.33 × 2.99

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Five-Component Disaggregation of ROE

AT&T Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 13.94% = 0.77 × 0.74 × 20.69% × 0.30 × 3.94
Dec 31, 2022 -8.74% = — × -3.48 × 1.13% × 0.30 × 4.13
Dec 31, 2021 12.07% = 0.79 × 0.79 × 19.21% × 0.31 × 3.32
Dec 31, 2020 -3.20% = — × -1.13 × 2.16% × 0.33 × 3.25
Dec 31, 2019 7.55% = 0.80 × 0.67 × 14.25% × 0.33 × 2.99

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Two-Component Disaggregation of ROA

AT&T Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 3.54% = 11.76% × 0.30
Dec 31, 2022 -2.12% = -7.06% × 0.30
Dec 31, 2021 3.64% = 11.89% × 0.31
Dec 31, 2020 -0.98% = -3.01% × 0.33
Dec 31, 2019 2.52% = 7.67% × 0.33

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Four-Component Disaggregation of ROA

AT&T Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 3.54% = 0.77 × 0.74 × 20.69% × 0.30
Dec 31, 2022 -2.12% = — × -3.48 × 1.13% × 0.30
Dec 31, 2021 3.64% = 0.79 × 0.79 × 19.21% × 0.31
Dec 31, 2020 -0.98% = — × -1.13 × 2.16% × 0.33
Dec 31, 2019 2.52% = 0.80 × 0.67 × 14.25% × 0.33

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Disaggregation of Net Profit Margin

AT&T Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 11.76% = 0.77 × 0.74 × 20.69%
Dec 31, 2022 -7.06% = — × -3.48 × 1.13%
Dec 31, 2021 11.89% = 0.79 × 0.79 × 19.21%
Dec 31, 2020 -3.01% = — × -1.13 × 2.16%
Dec 31, 2019 7.67% = 0.80 × 0.67 × 14.25%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).