AT&T Inc (T)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	31,168,000	36,458,000	33,108,000	170,768,000	52,008,000
Total current liabilities	US$ in thousands	46,872,000	51,127,000	56,173,000	106,230,000	63,438,000
Current ratio		0.66	0.71	0.59	1.61	0.82

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $31,168,000K ÷ $46,872,000K
= 0.66

The current ratio of AT&T Inc has fluctuated over the past five years. In December 31, 2020, the current ratio was 0.82, indicating that its current assets were only sufficient to cover 82% of its current liabilities. However, by December 31, 2021, the current ratio had improved significantly to 1.61, suggesting that the company had increased its current assets relative to its current liabilities.

Subsequently, the current ratio decreased to 0.59 by December 31, 2022, which may raise concerns about the company's short-term liquidity position. However, there was a slight improvement to 0.71 by December 31, 2023, albeit still below the ideal ratio of 1. Finally, by December 31, 2024, the current ratio dropped slightly to 0.66.

Overall, the fluctuating trend in the current ratio of AT&T Inc indicates varying levels of liquidity and ability to cover short-term obligations over the five-year period. Monitoring these fluctuations can provide insights into the company's financial health and its ability to manage its short-term financial commitments effectively.