This article analyzes AT&T Inc.'s Return on Equity (ROE), which stands at 18%, by comparing it to the Telecom industry average of 20%. While AT&T’s ROE is respectable and close to the industry average, the article also highlights the company’s significant debt-to-equity ratio of 1.06, suggesting that debt plays a role in enhancing its ROE. The analysis concludes that while ROE is a useful metric, investors should also consider debt levels and other factors like profit growth forecasts.
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Is AT&T Inc.'s (NYSE:T) ROE Of 18% Impressive?
This article analyzes AT&T Inc.'s Return on Equity (ROE), which stands at 18%, by comparing it to the Telecom industry average of 20%. While AT&T’s ROE is respectable and close to the industry average, the article also highlights the company’s significant debt-to-equity ratio of 1.06, suggesting that debt plays a role in enhancing its ROE. The analysis concludes that while ROE is a useful metric, investors should also consider debt levels and other factors like profit growth forecasts.