AT&T Inc (T)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 122,336,000 | 122,428,000 | 120,741,000 | 134,038,000 | 143,050,000 |
| Receivables | US$ in thousands | 9,638,000 | 10,289,000 | 11,466,000 | 17,571,000 | 20,215,000 |
| Receivables turnover | 12.69 | 11.90 | 10.53 | 7.63 | 7.08 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $122,336,000K ÷ $9,638,000K
= 12.69
The receivables turnover ratio for AT&T Inc has shown a consistent upward trend over the years, demonstrating an improvement in the efficiency of collecting outstanding receivables. In December 2020, the ratio stood at 7.08, indicating that the company collected its outstanding receivables approximately 7 times during the year. This ratio increased to 7.63 in December 2021, 10.53 in December 2022, 11.90 in December 2023, and further improved to 12.69 in December 2024.
The increasing trend in the receivables turnover ratio suggests that AT&T Inc has been more effective in converting its accounts receivables into cash, indicating a more efficient management of its credit policies and collection procedures. This improvement could point towards better liquidity management and potentially reduced risk of bad debts for the company. Overall, the rising receivables turnover ratio reflects positively on AT&T Inc's financial performance in terms of its accounts receivables management.
Peer comparison
Dec 31, 2024