AT&T Inc (T)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	38.53	26.53	34.38	29.02	26.81	16.91	21.42	23.12	21.28	28.05	31.13	26.96	25.03	5.88	5.69	6.08	28.58	6.19	6.96	7.02
Receivables turnover	11.90	13.59	13.05	11.86	10.53	10.58	10.70	7.43	7.63	7.36	8.30	8.02	7.08	8.92	9.16	9.00	8.00	7.96	8.20	7.44
Payables turnover	3.07	—	—	—	2.69	—	—	—	2.50	—	—	—	2.82	—	—	—	2.76	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	2.08	—	—	—	—	—	—	—	—	—	—	—

AT&T's activity ratios provide insights into how efficiently the company is managing its assets and liabilities in generating sales.

1. Inventory Turnover:
- AT&T's inventory turnover has been relatively stable over the past eight quarters, averaging around 18 to 23 times per year. This indicates that the company is effectively selling through its inventory, with a higher turnover suggesting efficient inventory management.

2. Receivables Turnover:
- The receivables turnover ratio measures how quickly AT&T collects payments from its customers. The company's receivables turnover has ranged from 9.47 to 13.06 times per year, reflecting a consistent ability to collect receivables within a reasonable time frame.

3. Payables Turnover:
- The payables turnover ratio, though missing data for Q3 2023, has been around 1.63 to 1.84 times per year. This indicates that AT&T takes around 1 to 2 months to pay off its trade payables, reflecting its payment practices with suppliers.

4. Working Capital Turnover:
- The absence of data for working capital turnover limits the analysis of how efficiently AT&T utilizes its working capital to generate sales. This ratio could provide insights into how effectively the company manages its current assets and liabilities.

Overall, AT&T's activity ratios suggest efficient management of inventory and receivables, with opportunities to further analyze the payment practices concerning its trade payables and the optimization of working capital turnover for a more comprehensive assessment of the company's operational efficiency.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	9.47	13.76	10.62	12.58	13.62	21.59	17.04	15.79	17.15	13.01	11.72	13.54	14.58	62.05	64.20	60.01	12.77	58.99	52.47	52.01
Days of sales outstanding (DSO)	days	30.68	26.87	27.96	30.77	34.66	34.48	34.10	49.15	47.85	49.62	43.96	45.50	51.58	40.91	39.86	40.56	45.60	45.88	44.51	49.06
Number of days of payables	days	118.85	—	—	—	135.60	—	—	—	146.11	—	—	—	129.22	—	—	—	132.18	—	—	—

Activity ratios like Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables provide insights into how effectively AT&T manages its assets and liabilities to generate sales and meet its financial obligations.

- Days of Inventory on Hand (DOH) measures how efficiently AT&T manages its inventory. A lower DOH indicates that inventory turnover is faster and the company is able to sell and replace goods more quickly. In Q4 2023, AT&T had 15.85 days of inventory on hand, which decreased from the previous quarter, showing improved efficiency in managing inventory.

- Days of Sales Outstanding (DSO) reflects how quickly AT&T collects payments from customers. A lower DSO indicates that the company is collecting revenue more efficiently. In Q4 2023, the DSO was 30.68 days, a slight increase from the previous quarter but remained relatively stable.

- Number of Days of Payables indicates how long AT&T takes to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its bills, which can be beneficial in managing cash flow. In Q4 2023, AT&T had 198.87 days of payables, showing an improvement from the previous quarter.

Overall, based on the activity ratios analysis, AT&T has shown some improvements in managing its inventory and payables, while maintaining a stable collection period from customers. It is important for the company to continue monitoring and optimizing these ratios to ensure operational efficiency and financial stability.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	1.39	1.39	1.39	1.34
Total asset turnover	0.30	0.30	0.30	0.30	0.30	0.28	0.29	0.22	0.24	0.22	0.24	0.25	0.27	0.32	0.32	0.33	0.33	0.33	0.34	0.32

AT&T, Inc.'s long-term activity ratios provide insights into the company's efficiency in utilizing its assets to generate sales. The fixed asset turnover ratio indicates how well the company is using its fixed assets to generate revenue. From Q1 2022 to Q4 2023, the fixed asset turnover ratio fluctuated between 0.88 and 1.28. The decreasing trend in the fixed asset turnover ratio indicates that AT&T may be becoming less efficient in generating sales from its fixed assets over these periods.

On the other hand, the total asset turnover ratio reflects the company's overall efficiency in using all assets to generate revenue. In the same period, the total asset turnover ratio ranged from 0.28 to 0.35, remaining relatively low. This suggests that AT&T may not be effectively utilizing its total assets to generate sales.

In summary, AT&T's fixed asset turnover ratio has shown a declining trend, indicating potential inefficiencies in using fixed assets to generate sales. The total asset turnover ratio has remained low, suggesting that the company may not be optimizing the utilization of all its assets to drive revenue. These trends underline the importance for AT&T to review its asset management strategies to improve efficiency and profitability.