AT&T Financial Statements and Financial Ratios Analyzed from 2015 to 2019

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Hey All,

Thanks for visiting my AT&T Financial Report page. On this page, you will be able to find preliminary information about AT&T current financial performance as well as some historical track records and trends. 

For a more detailed examination of AT&T financial performance, please check out the "Financial Report".  In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Summary analysis by myself of important income statement, balance sheet, and financial ratio trends and other happenings.
  • Five year’s worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is were I use plain English to explain concepts.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul MBA.

PDF/Downloadable Version

AT&T Financial Report by Paul Borosky, MBA.
  • Free Bonus Downloads: AT&T Annual Statements for the Last Five Years (10k reports)!

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

AT&T: Brief Summary

AT&T’s headquarters is located in Dallas, Texas.  The company competes in the communications sector of the telecom services industry.  The organization currently has approximately 247,000 individuals working for the firm.  Their main products and services offered would include DirecTV services, cable subscriptions, and electronic equipment.

From a financial perspective, the company’s stock price has ranged between $26.08 to $39.70 in the last 52 weeks.  Their current beta is .72, and their market capitalization is approximately $211 billion.

AT&T Financial Report Sources

 “AT&T 2019 Company Analysis: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA. and owner of Quality Business Plan.  In this report, the author selected AT&T's 2018 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and AT&A 2019 10k annual report as the basis for information gathering. 

Section 1: AT&T Income Statement Analyzed 2015 to 2019

In this section, I walk through a broad definition as to what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of AT&T's important income statement line item trends from 2015 to 2019, in most cases.

Revenue Growth:  AT&T ended 2015 with revenues of approximately $146.8 billion.  Over the next five years, the company would grow revenues at approximately a 5.5% annual growth rate.  However, in 2017, their growth did decline by 2%.  Overall, the growth rate achieved by the organization would be considered above average for a mature organizations.

Cost of Goods Sold:  In the last five years, AT&T’s cost of goods has been approximately 46% of revenues.  This consistent trend indicates that the organization is able to pass on increases in cost of goods to the consumers.  This is highly unusual for a technology company.

AT&T Income Statement 2019

Column1 2019 2018 2017 2016 2015
Revenues                  181,193                  170,756                  160,546                  163,786                    146,801
COGS                    84,141                    79,419                    77,810                    77,190                      67,046
Gross Profit                    97,052                    91,337                    82,736                    86,596                      79,755
SG&A                    39,422                    36,765                    35,465                    36,845                      32,919
Depreciation                    28,217                    28,430                    24,387                    25,847                      22,016
R & D
Other
Operating Expenses                  153,238                  144,660                  140,576                  140,243                    122,016
EBIT                    27,955                    26,096                    19,970                    23,543                      24,785
Other Income
Interest Expense                      8,422                      7,957                      6,300                      4,910                        4,120
EBT                    18,468                    24,873                    15,139                    19,812                      20,692
Taxes                      3,493                      4,920                   (14,708)                      6,479                        7,005
Net Income                   14,975                   19,953                   29,847                   13,333                    13,687

Section 2: AT&T Balance Sheet Analyzed from 2015 to 2019

For AT&T's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define AT&T’s balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019.  Next, I then offer an analysis of AT&T’s balance sheet important line items.

Cash:  AT&T’s cash position started 2016 at approximately $5.1 billion.  In the next five years, their cash position would range from $50 billion to $5.1 billion.  The fluctuation in the cash position shows that the company may periodically receive funding from debt issuances.  Further, the significant fluctuations may also indicate that the company may be liquidating assets.

Long Term Debt:  The company’s long-term debt ended 2015 at approximately $118 billion.  In the next five years, the company would systematically and continuously take on more and more debt until 2018.  In 2019, the company did slightly reduce its debt position to $151 billion.  Regardless, even though mature companies tend to take on elevated debt, this does increase the risk for the investors.

AT&T Summary Balance Sheet 2019

Column1 2019 2018 2017 2016 2015
Cash                      12,130                    5,204                  50,498                    5,788                    5,121
Short Term Investment
Account Receivable                      22,636                  26,472                  16,522                  16,794                  16,532
Inventory                         -                         -
Other                         -                         -
Current Assets                    54,761                51,427                79,146                38,369                35,992
Net PPE                    130,128                131,473                125,222                124,899                124,450
Goodwill                    146,241                146,370                105,449                105,207                104,568
Other                         -                         -                         -                         -
Total Assets                  551,669              531,864              444,097              403,821              402,672
Accounts Payable                      45,956                  43,184                  34,470                  31,138                  30,372
Accrued Expense                         -                         -                         -                         -
Accrued Taxes                        1,212                    1,179                    1,262                    2,079                    2,176
Notes Payable                         -                         -                         -                         -
LT Debt - Current                      11,838                  10,255                  38,374                    9,832                    7,636
Other
Total Current Liabilities                      68,911                  64,420                  81,389                  50,576                  47,816
LT Debt                    151,309                166,250                125,972                113,681                118,515
Other
Total Liabilities                  349,735              337,980              302,090              279,711              279,032
Common Stock                        7,621                    7,621                    6,495                    6,495                    6,495
Treasury                      13,085                  12,059                  12,714                  12,659                  12,592
Retained Earnings                      57,936                  58,753                  50,500                  34,734                  33,671
Other
Total Equity                  201,934              193,884              142,007              124,110              123,640
Total Equity & Liability                  551,669              531,864              444,097              403,821              402,672

Section 3: AT&T Financial Ratios Analyzed from 2015 to 2019

For this final section, I have chosen about 16 different financial ratios to calculate for AT&T from 2015 to 2019.  I also review some important AT&T financial ratios. I first start with defining the financial ratio.  Next, I supply the financial formulas for calculating the specific ratio.  Finally, I offer a brief analysis of important financial ratios.

AT&T Current Ratio

AT&T’s current ratio ended 2015 at .75.  In the next three years, the current ratio would increase to .97 in 2017.  As a company increases its current ratio, this also increases the company’s ability to pay its short-term debt.  As a result, the firm became more and more solvent.  However, in the last two years, the organization had significantly reduced its current ratio from .97 in 2017 to .79 in 2019.  This shows that the organization is attempting to exploit cash flows for operational purposes.  The strategy is excellent for retailers and grocers who continuously receive an influx of cash on a daily basis.  Unfortunately, AT&T does not have this business model in my most humble of opinions.

AT&T Total Asset Turnover

AT&T’s total asset turnover has ranged between .36 at the end of 2015 to .41 in 2016.  In the last two years, their total asset turnover has been well below average at approximately .33.  This indicates that the company is not using its assets as efficiently as a did in the previous three years.  Unfortunately, this may be a reflection as to possible lax leadership from the executive team.

AT&T Return on Equity

AT&T’s return on equity ended 2015 at 11.07%.  In the next two years, the return on equity would increase dramatically to 21%.  However, in the past two years, the return on equity has fallen from 10.29% in 2018 to 7.4% in 2019.  The continued reduction in return on equity again highlights possible inefficient leadership from the executive team.  To mitigate this issue, the organization may want to consider taking on more debt and repurchasing stock from the open market.

AT&T's Debt Ratio

AT&T’s debt ratio increased from 29.4% in 2015 to 31.3% in 2018.  However, the organization did reduce their debt load in 2019 to 27.4%.  This reduction may have directly impacted their return on equity.  Because the organization would be considered mature, the company should maintain a slightly higher than average debt ratio.  As a result, I would definitely recommend taking on more debt and repurchasing, again, stock from the open market to drive up stock prices

 

AT&T Liquidity Ratios 2019

Ratios 2019 2018 2017 2016 2015
Current Ratio                           0.79                    0.80
Cash Ratio                           0.18                    0.08
Quick Ratio                           0.79                    0.80
Net Working Capital                     (12,402)              (12,687)

AT&T Asset Utilization 2019

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           0.33                    0.32
Fixed Asset Turnover                           1.39                    1.30
Days Sales Outstanding                         45.60                  56.59
Inventory Turnover #DIV/0! #DIV/0!
Accounts Receivable Turnover                           8.00                    6.45
Working Capital Turnover                       (14.61)                (13.46)
AP Turnover                           3.94                    3.95
Average Days Inventory #DIV/0! #DIV/0!
Average Days Payable                           0.01                    0.01

AT&T Profitability Ratios 2019

Ratios 2019 2018 2017 2016 2015
Return on Assets 2.71% 3.75%
Return on Equity 7.42% 10.29%
Net Profit Margin 8.26% 11.69%
Gross Profit Margin 53.56% 53.49%
Operating Profit Margin 15.43% 15.28%
Basic Earning Power 5.07% 4.91%
ROCE 5.79% 5.58%
Capital Employed                     482,758              467,444
ROIC 19.25% 17.62%

AT&T Long-term Debt 2019

Ratios 2019 2018 2017 2016 2015
Debt Ratio 27.43% 31.26%
Debt/Equity 74.93% 85.75%
Times Interest Earned                           3.32                    3.28