AT&T Inc (T)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 103,297,000 | 97,500,000 | 166,332,000 | 161,673,000 | 184,221,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $103,297,000K
= 0.00
The debt-to-equity ratio of AT&T, Inc. has shown an increasing trend over the past five years, indicating a higher level of leverage and reliance on debt financing as compared to equity. In 2023, the ratio is at 1.33, slightly lower than the previous year's 1.40 but significantly higher than the ratios reported in 2021, 2020, and 2019. This suggests that the company has been taking on more debt relative to its equity to fund its operations and investments.
A debt-to-equity ratio above 1 typically indicates that a company has more debt than equity, reflecting potential financial risk as higher debt levels could lead to increased interest payments and financial constraints. While the upward trend in the ratio may signal concerns about AT&T's financial health and ability to manage its debt obligations, it is essential to consider the industry norms and the company's specific circumstances to assess the overall impact on its financial position and performance. Further analysis of AT&T's debt structure, interest coverage ratio, and profitability metrics will provide a more comprehensive understanding of its financial leverage and risk profile.
Peer comparison
Dec 31, 2023