AT&T Inc (T)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	24.56	38.40	46.05	39.40	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	—
Receivables turnover	12.69	13.46	12.62	12.77	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
Payables turnover	2.03	—	—	—	3.07	—	—	—	2.69	—	—	—	2.50	—	—	—	2.82	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	2.08	—	—	—	—	—	—	—

AT&T Inc's activity ratios provide insights into how effectively the company is managing its assets and operations. Here is a detailed analysis based on the provided data:

1. Inventory Turnover:
AT&T's inventory turnover ratio shows how many times the company is able to sell and replace its inventory within a given period. The trend indicates an improvement in inventory turnover from 2020 to 2023, peaking in June 2024 at 46.05 times. However, there was a decrease in the last quarter of 2024 to 24.56 times. A high inventory turnover suggests efficient inventory management.

2. Receivables Turnover:
The receivables turnover ratio reflects how many times a company collects its accounts receivable during a specific period. The data shows fluctuations in AT&T's receivables turnover ratio over the years, with peaks observed in June 2023 and September 2024. A higher turnover implies effective credit policies and collection procedures.

3. Payables Turnover:
The payables turnover ratio assesses how efficiently a company pays its suppliers. AT&T's data shows a gradual increase in payables turnover from 2020 to 2024, peaking at 3.07 at the end of December 2023. A higher payables turnover ratio indicates that the company is managing its payables effectively.

4. Working Capital Turnover:
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. The data for AT&T reveals a lack of information for the earlier years, with the first recorded figure of 2.08 in December 2021. The continuity of lacking data implies challenges in evaluating this ratio over the years.

In conclusion, the analysis of AT&T Inc's activity ratios suggests improvements in inventory turnover and payables turnover, with fluctuations observed in receivables turnover. However, the working capital turnover ratio lacks sufficient data for a comprehensive assessment. Overall, the company's activity ratios indicate varying levels of efficiency in managing its assets and operations over the analyzed period.

Average number of days

		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
Days of inventory on hand (DOH)	days	14.86	9.50	7.93	9.26	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	—
Days of sales outstanding (DSO)	days	28.76	27.12	28.93	28.58	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
Number of days of payables	days	179.63	—	—	—	118.85	—	—	—	135.60	—	—	—	146.11	—	—	—	129.22	—	—	—

AT&T Inc's activity ratios provide insights into the efficiency of managing its inventory, collecting receivables, and paying its payables over time.

1. Days of Inventory on Hand (DOH):
- AT&T has shown a significant improvement in managing its inventory over the years, with the DOH decreasing from 64.20 days in June 2020 to 7.93 days in June 2024. This indicates that the company is holding less inventory on hand, which can lead to lower holding costs and better liquidity.

2. Days of Sales Outstanding (DSO):
- The DSO metric reflects AT&T's ability to collect receivables efficiently. The trend shows a decrease in DSO from 51.58 days in December 2020 to 28.76 days in December 2024. This indicates that the company is collecting receivables more quickly, improving cash flow and reducing the risk of bad debts.

3. Number of Days of Payables:
- AT&T's payables management indicates the number of days the company takes to pay its suppliers. The figures show an increase in the number of days of payables from 129.22 days in December 2020 to 179.63 days in December 2024. This may imply that AT&T is taking longer to pay its suppliers, possibly to conserve cash or manage working capital more effectively.

Overall, improvements in inventory management and receivables collection, along with an increase in the number of days of payables, suggest a more efficient use of resources and better cash flow management by AT&T Inc.

Long-term

	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
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
Total asset turnover	0.31	0.31	0.31	0.31	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

The Fixed Asset Turnover ratio for AT&T Inc has been decreasing over the quarters, indicating a decline in the company's ability to generate revenue from its fixed assets efficiently. The ratio decreased from 1.39 in March 2020 to 0.95 in December 2024, suggesting a decrease in the utilization of the company's fixed assets over time.

On the other hand, the Total Asset Turnover ratio also showed a declining trend initially but started to stabilize and slightly improve in the later quarters. The ratio decreased from 0.33 in March 2020 to 0.22 in September 2021 but gradually increased to 0.31 by December 2024. This indicates that AT&T's overall ability to generate revenue from all its assets improved towards the end of the period under consideration.

Overall, the declining trend in Fixed Asset Turnover and the initial drop in Total Asset Turnover suggest that AT&T may have faced challenges in efficiently utilizing its assets to generate revenue in the earlier quarters. However, the stabilization and improvement in Total Asset Turnover in the later quarters indicate potential improvements in the company's overall asset utilization efficiency.