AT&T Inc (T)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 36,458,000 | 33,108,000 | 170,768,000 | 52,008,000 | 54,761,000 |
| Total current liabilities | US$ in thousands | 51,127,000 | 56,173,000 | 106,230,000 | 63,438,000 | 68,911,000 |
| Current ratio | 0.71 | 0.59 | 1.61 | 0.82 | 0.79 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $36,458,000K ÷ $51,127,000K
= 0.71
The current ratio of AT&T, Inc. has fluctuated over the past five years, ranging from 0.59 to 0.82. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.
In 2023, the current ratio decreased to 0.71 from 0.59 in 2022, which could signal potential liquidity challenges as the company may have fewer current assets relative to its current liabilities. It is important for AT&T to closely monitor its ability to meet short-term obligations to ensure financial stability.
Comparing to the previous years, the current ratio has been relatively low, indicating a potential liquidity concern. Management may need to focus on improving the efficiency of current asset management or reducing current liabilities to enhance the company's liquidity position and financial health. Further analysis of the components of current assets and liabilities is recommended to gain a deeper understanding of the company's liquidity challenges.
Peer comparison
Dec 31, 2023