AT&T Inc (T)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 3.94 | 4.13 | 3.32 | 3.25 | 2.99 |
AT&T, Inc.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.30 to 0.34, indicating that around 30% to 34% of the company's assets are financed by debt.
The debt-to-capital ratio has shown a slight upward trend, increasing from 0.47 in 2019 to 0.57 in 2023. This suggests that debt accounts for approximately 57% of AT&T's capital structure in the most recent year.
The debt-to-equity ratio has also increased over the years, from 0.89 in 2019 to 1.33 in 2023. This indicates that for every dollar of equity, AT&T carries $1.33 in debt by the end of 2023.
The financial leverage ratio has similarly shown an upward trend, from 2.99 in 2019 to 3.94 in 2023. This indicates that the company's financial leverage has increased, implying higher financial risk.
Overall, AT&T's solvency ratios suggest that the company has been progressively relying more on debt to finance its operations and investments. Investors and creditors may monitor these ratios closely to assess the company's ability to manage its debt levels and maintain financial stability in the long run.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.78 | 0.22 | 4.79 | 0.48 | 3.07 |
AT&T, Inc.'s interest coverage ratio has fluctuated over the past five years. The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating income.
In 2023, AT&T, Inc. had an interest coverage ratio of 3.93, which means the company earned almost 4 times its interest expenses. This shows a slight decrease compared to the previous year, where the interest coverage ratio was 4.04. Despite the slight decrease, the ratio remains above 3, indicating that AT&T, Inc. is able to comfortably meet its interest obligations.
Looking further back, in 2021 and 2019, AT&T, Inc. had higher interest coverage ratios of 4.20 and 3.49, respectively. The peak in 2021 suggests the company was particularly well-positioned to cover its interest expenses during that period. However, in 2020, the interest coverage ratio dropped to 3.20, indicating a temporary dip in the company's ability to cover its interest costs that year.
Overall, AT&T, Inc.'s interest coverage ratios show a generally healthy trend over the past five years, with occasional fluctuations. It is important for investors and creditors to monitor this ratio to assess the company's ability to manage its debt obligations effectively.