TNEUTRAL

Return on Equity (ROE)

18.4%

Higher than 53% of Communication Services sector peers

Updated 128h ago

Sector Performance

53th percentile

18.4%

Sector Median

14.7%

Sector Avg

18.3%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders' money; an ROE of 18.4% means T earns $18.40 for every $100 of equity.

This is above the Communication Services sector median of 14.7%, placing T at the 53rd percentile among peers—slightly above average. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 7.1%, and the two most recent values (18.4% and 19.8%) confirm a drop from the prior quarter. The combination of an above-median ROE with a recent quarterly decline suggests the company still earns a healthy return relative to its sector, but the downward trend introduces caution for near-term performance. This metric supports the overall NEUTRAL verdict: the solid level is tempered by the negative quarter-over-quarter movement, neither strongly bullish nor bearish.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about T?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does T's Return on Equity (ROE) compare to its sector?

T's Return on Equity (ROE) of 18.4% compares to a Communication Services sector median of 14.7%, placing it in the 53th percentile.

Who are T's closest peers by Return on Equity (ROE)?

The closest Communication Services peers by Return on Equity (ROE) include: DIS (11.0%), DASH (9.9%), YELP (20.4%), PINS (8.9%), RDDT (26.2%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.