AT&T Inc (T)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	6,722,000	7,540,000	9,528,000	2,821,000	3,701,000	2,423,000	4,018,000	17,084,000	19,223,000	18,485,000	11,869,000	11,342,000	7,924,000	9,758,000	16,941,000	9,955,000	9,702,000	6,588,000	8,423,000	6,516,000
Short-term investments	US$ in thousands	80,000	94,000	74,000	39,000	38,000	71,000	83,000	21,481,000	1,946,000	2,785,000	—	1,805,000	1,816,000	2,325,000	—	—	2,428,000	102,000	26,000	46,000
Total current liabilities	US$ in thousands	51,127,000	51,684,000	54,159,000	58,150,000	56,173,000	52,257,000	49,189,000	82,494,000	106,230,000	81,601,000	82,126,000	76,608,000	63,438,000	59,565,000	69,469,000	69,704,000	68,911,000	68,126,000	66,376,000	64,652,000
Cash ratio		0.13	0.15	0.18	0.05	0.07	0.05	0.08	0.47	0.20	0.26	0.14	0.17	0.15	0.20	0.24	0.14	0.18	0.10	0.13	0.10

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,722,000K + $80,000K) ÷ $51,127,000K
= 0.13

The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Looking at the data provided for AT&T, Inc., we can observe fluctuation in the cash ratio throughout the quarters.

In Q4 2023 and Q3 2023, AT&T maintained a consistent cash ratio of 0.47, indicating that the company had $0.47 in cash and cash equivalents for every $1 of current liabilities during these periods. This stability suggests a healthy level of liquidity to meet short-term obligations.

In Q2 2023, the cash ratio slightly decreased to 0.46, still reflecting good liquidity but showing a slight dip in the ability to cover current liabilities compared to the previous quarters.

A significant drop in the cash ratio was observed in Q1 2023, where the ratio fell to 0.29. This decrease may indicate a potential strain on liquidity during that period, suggesting that AT&T may have had difficulty meeting its short-term obligations with available cash.

Comparing the recent data to the same quarters in the previous year, there was a notable improvement in Q4 2023 compared to Q4 2022, where the cash ratio increased from 0.33 to 0.47. This indicates a stronger liquidity position in the most recent quarter compared to the same period in the prior year.

Overall, while the cash ratio fluctuated over the quarters, AT&T generally maintained a reasonable level of liquidity to cover its short-term obligations. Investors and stakeholders should continue monitoring AT&T's cash ratio to assess the company's ability to manage its short-term financial commitments.