The business behind the dividend
| Measure | T | Median | Formula |
|---|---|---|---|
| Return on equity | 17.4% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 8.9% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $22.00bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $19.44bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 19.2% | 15.0% | Operating income ÷ revenue |
| Net margin | 17.5% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.14x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 3.55x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.91x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.84x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 17.4% | 9.3% | 12.3% | -8.0% | 10.9% | -2.9% | 6.9% | 10.0% | 20.7% | 10.5% | 10.0% |
| Return on capital employed | 8.9% | 7.8% | 9.0% | -1.9% | 6.9% | 2.5% | 7.5% | 7.0% | 6.5% | 9.5% | 7.0% |
| Operating margin | 19.2% | 15.6% | 19.2% | -3.8% | 19.3% | 5.9% | 15.4% | 15.3% | 12.4% | 14.4% | 15.3% |
| Net margin | 17.5% | 8.9% | 11.8% | -7.1% | 15.0% | -3.6% | 7.7% | 11.3% | 18.3% | 7.9% | 8.9% |
| Debt to equity | 1.14x | 1.08x | 1.22x | 1.32x | 1.04x | 0.89x | 0.86x | 0.91x | 1.16x | 1.00x | 1.04x |
| Current ratio | 0.91x | 0.66x | 0.71x | 0.59x | 1.61x | 0.82x | 0.79x | 0.80x | 0.97x | 0.76x | 0.79x |
| Cash conversion | 1.84x | 3.54x | 2.66x | — | 2.09x | — | 3.50x | 2.25x | 1.29x | 2.96x | 2.66x |
How it compares in communications
Among the 25 communications companies here measured on free cash flow, AT&T pays out less than 7 of them. The median for that group is 28.4%, against this company’s 42.1%.
Closest on free cash flow
- Nexstar Media Group (NXST) 30.4%
- Deluxe (DLX) 31.5%
- ATN International (ATNI) 35.7%
- Telephone & Data Systems (TDS) 44.0%
Same sector and same denominator, so the figures are comparable. All 31 in communications →