AT&T Financial Statements and Financial Ratios Analyzed from 2015 to 2019
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!
- Free Bonus Downloads: AT&T Annual Statements for the Last Five Years (10k reports)!
Sample Financial Report
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
|R & D|
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
|Short Term Investment|
|LT Debt - Current||11,838||10,255||38,374||9,832||7,636|
|Total Current Liabilities||68,911||64,420||81,389||50,576||47,816|
|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
|Net Working Capital||(12,402)||(12,687)|
AT&T Asset Utilization 2019
|Total Asset Turnover||0.33||0.32|
|Fixed Asset Turnover||1.39||1.30|
|Days Sales Outstanding||45.60||56.59|
|Accounts Receivable Turnover||8.00||6.45|
|Working Capital Turnover||(14.61)||(13.46)|
|Average Days Inventory||#DIV/0!||#DIV/0!|
|Average Days Payable||0.01||0.01|
AT&T Profitability Ratios 2019
|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%|
AT&T Long-term Debt 2019
|Times Interest Earned||3.32||3.28|