AT&T Inc (T)

Liquidity ratios

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
Current ratio 0.71 0.69 0.68 0.51 0.59 0.62 0.70 0.93 1.61 0.70 0.77 0.82 0.82 0.84 0.81 0.76 0.79 0.74 0.71 0.72
Quick ratio 0.33 0.32 0.35 0.22 0.27 0.27 0.31 0.68 0.36 0.46 0.34 0.39 0.47 0.53 0.52 0.43 0.50 0.43 0.46 0.47
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

The liquidity ratios of AT&T, Inc. indicate the company's ability to meet its short-term financial obligations.

The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has been below 1 in all quarters analyzed. This suggests that AT&T may have had difficulty meeting its short-term debt obligations with its current assets. The ratio has been fluctuating, with the lowest value of 0.51 in Q1 2023 and the highest value of 0.93 in Q1 2022.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. AT&T's quick ratio has followed a similar trend to the current ratio, remaining below 1 in all periods. The quick ratio has varied between 0.47 in Q1 2023 and 0.89 in Q1 2022, indicating fluctuations in the company's ability to meet short-term obligations without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity, focuses solely on cash and cash equivalents to cover current liabilities. AT&T's cash ratio has also been below 1 in all quarters, indicating a limited ability to cover short-term obligations without relying on other current assets. The lowest value of 0.29 was recorded in Q1 2023, while the highest value of 0.68 was reported in Q1 2022.

Overall, based on the liquidity ratios analyzed, AT&T appears to have faced challenges in meeting its short-term financial obligations consistently over the periods examined. Investors and stakeholders may want to monitor these ratios closely to assess the company's liquidity position and ability to manage its short-term debt.

See also:

AT&T Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days -78.70 40.62 38.58 43.34 -87.32 56.07 51.14 64.93 -81.12 62.64 55.69 59.04 -63.06 102.96 104.06 100.58 -73.81 104.87 96.99 101.07

The cash conversion cycle of AT&T, Inc. provides insights into the efficiency of the company's working capital management. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers, which can be a sign of strong liquidity and operational efficiency.

In the most recent quarter, AT&T experienced a negative cash conversion cycle of -152.34 days, a significant improvement from the previous quarter at 49.31 days. This indicates that the company was able to convert inventory into cash quickly while delaying payments to suppliers, resulting in a strong position in terms of working capital management.

Comparing to the same quarter in the previous year, the company has made a remarkable turnaround in its cash conversion cycle from -166.17 days to -152.34 days, showcasing a more efficient management of working capital.

Overall, AT&T's trend towards a negative cash conversion cycle reflects effective management of its operating cycle, indicating potential strength in liquidity and operational efficiency in its business operations. This improvement may provide the company with additional financial flexibility and a competitive advantage in the market.