AT&T Inc (T)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 407,060,000 | 406,698,000 | 408,453,000 | 400,873,000 | 402,853,000 | 426,463,000 | 426,433,000 | 577,195,000 | 551,622,000 | 547,107,000 | 544,710,000 | 546,985,000 | 525,761,000 | 538,553,000 | 547,898,000 | 545,354,000 | 551,669,000 | 548,796,000 | 546,914,000 | 548,384,000 |
| Total stockholders’ equity | US$ in thousands | 103,297,000 | 103,703,000 | 101,903,000 | 99,396,000 | 97,500,000 | 122,406,000 | 117,746,000 | 169,036,000 | 166,332,000 | 163,771,000 | 162,296,000 | 165,488,000 | 161,673,000 | 175,553,000 | 175,896,000 | 177,779,000 | 184,221,000 | 183,049,000 | 184,257,000 | 185,112,000 |
| Financial leverage ratio | 3.94 | 3.92 | 4.01 | 4.03 | 4.13 | 3.48 | 3.62 | 3.41 | 3.32 | 3.34 | 3.36 | 3.31 | 3.25 | 3.07 | 3.11 | 3.07 | 2.99 | 3.00 | 2.97 | 2.96 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $407,060,000K ÷ $103,297,000K
= 3.94
The financial leverage ratio for AT&T, Inc. has shown fluctuations over the past few quarters. The ratio indicates the company's level of debt relative to its equity. A higher financial leverage ratio suggests that the company relies more on debt financing, which can increase financial risk but also potentially enhance returns for shareholders.
In Q4 2023, AT&T's financial leverage ratio was 3.94, slightly higher compared to the previous quarter. This indicates that the company had a higher level of debt relative to equity compared to Q3 2023. The increase in the ratio could be attributed to various factors such as taking on additional debt for investments or acquisitions, or a decline in equity.
Looking back at the trend over the last few quarters, the financial leverage ratio has been fluctuating within a range. The ratio hit a recent peak in Q4 2022 at 4.13, indicating a relatively higher level of debt compared to equity at that time. Subsequently, the ratio decreased in Q1 2023 but has been on an upward trend since then.
Overall, the fluctuations in AT&T's financial leverage ratio suggest varying levels of debt used to finance its operations and investments. Investors and stakeholders may closely monitor this ratio to assess the company's financial risk and stability, as well as its capacity to meet its debt obligations.
Peer comparison
Dec 31, 2023