AT&T Financial Statements and Financial Ratios

AT&T Financial Statements and Financial Ratios Analyzed

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's current financial performance as well as some historical track records and trends. 

For a more detailed examination of AT&T's financial performance, I offer two reports, which are "A Beginner's Guide to AT&T Financial Analysis" and "AT&T Financial Report by Paul Borosky, MBA." Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ 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 are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "AT&T Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years (starting in 2021).
  • Overall financial analysis summary for the company.

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

Sincerely,

Paul, MBA.

 

 

PDF/Downloadable Versions

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&T's 2019 10k annual report as the basis for information gathering. 

Section 1: AT&T Income Statement Analyzed

In this section, I walk through a broad definition of 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 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 the cost of goods to the consumers.  This is highly unusual for a technology company.

AT&T 2021 Summary Income Statement

Column1

2021

2020 2019 2018

2017

Revenues

                 168,864

                 171,760                  181,193                  170,756

                   160,546

COGS

                   79,807

                   79,920                    84,141                    79,419

                     77,810

Gross Profit

                   89,057

                   91,840                    97,052                    91,337

                     82,736

 
SG&A

                   37,944

                   38,039                    39,422                    36,765

                     35,465

Depreciation

                   22,862

                   28,516                    28,217                    28,430

                     24,387

R & D
Other
Total Operating Expenses

                   60,806

                   66,555                    67,639                    65,195

                     59,852

EBIT

                   23,347

                     6,405                    27,955                    26,096

                     19,970

Other Income
Interest Expense

                     6,884

                     7,925                      8,422                      7,957

                       6,300

EBT

                   26,947

                    (2,856)                    18,468                    24,873

                     15,139

Taxes

                     5,468

                        965                      3,493                      4,920

                   (14,708)

Net Income

                  20,081

                  (3,821)                   14,975                   19,953

                   29,847

 

 

Section 2: AT&T Balance Sheet Analyzed

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's 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 2021 Summary Balance Sheet

Column1

2021

2020 2019 2018

2017

Cash

                     21,169

                   9,740                  12,130                    5,204

                 50,498

Short Term Investment
Account Receivable

                     17,571

                 20,215                  22,636                  26,472

                 16,522

Inventory
Other
Current Assets

                   59,997

               52,008                54,761                51,427

               79,146

Net PPE

                   125,904

               127,315                130,128                131,473

               125,222

Goodwill

                   133,223

               135,259                146,241                146,370

               105,449

Other                         -                         -
Total Assets

                 551,622

             525,761              551,669              531,864

             444,097

Accounts Payable

                     50,661

                 50,051                  45,956                  43,184

                 34,470

Accrued Expense                         -                         -
Accrued Taxes                              -

                        -

                   1,212                    1,179

                   1,262

Notes Payable                         -                         -                         -
LT Debt - Current

                     24,630

                   3,470                  11,838                  10,255

                 38,374

Other                              -                         -
Total Current Liabilities

                     85,588

                 63,438                  68,911                  64,420

                 81,389

LT Debt

                   152,724

               153,775                151,309                166,250

               125,972

Other
Total Liabilities

                 367,767

             346,521              349,735              337,980

             302,090

Common Stock

                   137,733

               137,796                    7,621                    7,621

                   6,495

Treasury

                     17,280

                 17,910                  13,085                  12,059

                 12,714

Retained Earnings

                     42,350

                 37,457                  57,936                  58,753

                 50,500

Other
Total Equity

                 183,855

             179,240              201,934              193,884

             142,007

Total Equity & Liability

                 551,622

             525,761              551,669              531,864

             444,097

 

Section 3: AT&T Financial Ratios Analyzed

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 from .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 of 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 its 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.