AT&T Inc (T)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 122,336,000 | 122,060,000 | 122,197,000 | 122,317,000 | 122,428,000 | 121,749,000 | 121,442,000 | 121,168,000 | 120,741,000 | 120,493,000 | 121,776,000 | 127,873,000 | 134,038,000 | 119,924,000 | 130,938,000 | 136,148,000 | 143,050,000 | 172,890,000 | 175,138,000 | 179,145,000 |
| Property, plant and equipment | US$ in thousands | 128,871,000 | 127,964,000 | 127,772,000 | 127,851,000 | 128,489,000 | 128,496,000 | 128,783,000 | 128,458,000 | 127,445,000 | 127,045,000 | 125,135,000 | 127,159,000 | 121,649,000 | 124,419,000 | 123,591,000 | 124,607,000 | 121,104,000 | 128,722,000 | 128,945,000 | 128,921,000 |
| Fixed asset turnover | 0.95 | 0.95 | 0.96 | 0.96 | 0.95 | 0.95 | 0.94 | 0.94 | 0.95 | 0.95 | 0.97 | 1.01 | 1.10 | 0.96 | 1.06 | 1.09 | 1.18 | 1.34 | 1.36 | 1.39 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $122,336,000K ÷ $128,871,000K
= 0.95
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. For AT&T Inc, the fixed asset turnover ratio has shown a declining trend from 1.39 in March 2020 to 0.95 in December 2024. This indicates that the company is generating less revenue from its fixed assets over time.
A declining fixed asset turnover could be a cause for concern as it may suggest inefficient utilization of fixed assets or a decrease in sales relative to the investment in these assets. It could also indicate increased competition, changes in technology affecting the value of existing assets, or other macroeconomic factors impacting the firm's operations.
AT&T Inc should closely monitor its fixed asset turnover ratio and explore strategies to improve asset efficiency and productivity, such as asset utilization optimization, asset modernization, or divestment of underperforming assets. By enhancing the management of fixed assets and aligning them with revenue generation, the company can work towards improving its overall financial performance and competitiveness in the market.
Peer comparison
Dec 31, 2024