AT&T Inc (T)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 407,060,000 | 402,853,000 | 551,622,000 | 525,761,000 | 551,669,000 |
| Total stockholders’ equity | US$ in thousands | 103,297,000 | 97,500,000 | 166,332,000 | 161,673,000 | 184,221,000 |
| Financial leverage ratio | 3.94 | 4.13 | 3.32 | 3.25 | 2.99 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $407,060,000K ÷ $103,297,000K
= 3.94
AT&T, Inc.'s financial leverage ratio has shown fluctuations over the past five years. The ratio was 3.94 in 2023, which indicates that the company had $3.94 in total assets for every $1 in equity. This ratio decreased from 4.13 in 2022, suggesting a reduction in leverage. The decrease in 2023 may signal improved financial stability or a shift towards a more conservative capital structure.
Comparing the 2023 ratio to previous years, AT&T's leverage has generally been on an upward trend since 2019 when it was 2.99. The company's leverage ratio peaked in 2022 at 4.13, which might have indicated higher financial risk at that time. However, the subsequent decrease in 2023 suggests potential efforts to reduce debt levels or increase equity.
Overall, AT&T's financial leverage ratio has fluctuated over the years, reflecting changes in the company's capital structure and financial health. It is important for stakeholders to monitor these ratios to assess the company's risk profile and debt management strategies.
Peer comparison
Dec 31, 2023