AT&T Inc (T)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,722,000 | 3,701,000 | 19,223,000 | 7,924,000 | 9,702,000 |
| Short-term investments | US$ in thousands | 80,000 | 38,000 | 1,946,000 | 1,816,000 | 2,428,000 |
| Receivables | US$ in thousands | 10,289,000 | 11,466,000 | 17,571,000 | 20,215,000 | 22,636,000 |
| Total current liabilities | US$ in thousands | 51,127,000 | 56,173,000 | 106,230,000 | 63,438,000 | 68,911,000 |
| Quick ratio | 0.33 | 0.27 | 0.36 | 0.47 | 0.50 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,722,000K
+ $80,000K
+ $10,289,000K)
÷ $51,127,000K
= 0.33
The quick ratio of AT&T, Inc. measures the company's ability to cover its short-term liabilities with its most liquid assets excluding inventory. A higher quick ratio indicates better short-term liquidity and financial health.
The quick ratio of AT&T, Inc. has fluctuated over the past five years, ranging from 0.53 to 0.82. In 2023, the quick ratio stood at 0.67, showing an improvement from the previous year. However, it is still lower compared to the levels seen in 2020 and 2019.
Although the quick ratio for 2023 is below 1, indicating that the company may have difficulty meeting its short-term obligations using only its liquid assets, AT&T's ratio has shown some level of stability in recent years, with fluctuations likely due to changes in the company's financial structure and management of current assets.
Overall, while the current quick ratio may raise some concerns about AT&T's short-term liquidity position, further analysis in conjunction with other financial metrics and industry benchmarks is recommended to provide a more comprehensive assessment of the company's financial health.
Peer comparison
Dec 31, 2023