AT&T Inc (T)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.78 | 3.94 | 4.13 | 3.32 | 3.25 |
The solvency ratios of AT&T Inc, as indicated by the provided data, demonstrate strong financial health and a low level of debt relative to its assets and equity over the analyzed period.
The Debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, has consistently been reported as 0.00 across all the years, indicating that the company has not relied heavily on debt to fund its operations.
Similarly, the Debt-to-capital ratio, which assesses the proportion of a company's capital that is funded by debt, has also been consistently reported as 0.00 throughout the period. This suggests that AT&T Inc has primarily used equity to finance its operations rather than taking on significant debt.
The Debt-to-equity ratio, which compares a company's total debt to its total shareholders' equity, has been reported as 0.00 for all years, further confirming the company's minimal reliance on debt to support its operations.
Lastly, the Financial leverage ratio, a measure of a company's debt relative to its equity, has shown some fluctuation over the years but has generally remained below 4, indicating a moderate level of financial leverage and suggesting that AT&T Inc has been able to manage its debt obligations effectively.
In conclusion, based on the solvency ratios analyzed, AT&T Inc appears to have a strong financial position with low debt levels and a conservative approach to financing its operations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.68 | 3.78 | 0.22 | 4.79 | 0.48 |
The interest coverage ratio measures a company's ability to meet its interest obligations from its operating income. Looking at the data provided for AT&T Inc, we observe fluctuations in the interest coverage ratio over the years.
In December 31, 2020, the interest coverage ratio was 0.48, indicating that AT&T's operating income was only able to cover 48% of its interest expenses. This suggests a potential strain on the company's ability to repay its debt obligations from its earnings during that period.
By December 31, 2021, the interest coverage ratio significantly improved to 4.79, signaling a stronger ability to cover its interest payments from operating income. This increase is generally positive as it indicates a healthier financial position and reduced financial risk.
However, there was a notable decline in the interest coverage ratio by December 31, 2022, where it dropped to 0.22. This sharp decrease suggests a potential deterioration in AT&T's ability to cover its interest expenses from operating income, raising concerns about the company's financial health during that period.
Subsequently, there was a recovery in the interest coverage ratio by December 31, 2023, reaching 3.78. This improvement indicates a better capacity to handle interest obligations compared to the previous year, reflecting positively on AT&T's financial standing.
Lastly, as of December 31, 2024, the interest coverage ratio stood at 2.68, showing a moderate ability to meet interest payments from operational earnings. This ratio, although lower than the peak in 2021, still demonstrates a reasonable coverage level and suggests AT&T's ongoing efforts to manage its debt obligations.
In summary, the analysis of AT&T Inc's interest coverage ratios reveals fluctuations over the years, with improvements in some periods and declines in others. Monitoring this ratio is crucial for stakeholders to assess the company's ability to handle its interest obligations and manage its financial risks effectively.