AT&T Inc (T)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 25,329,000 | -973,000 | 1,070,000 | 738,000 | 1,364,000 | 31,006,000 | 31,493,000 | 28,686,000 | 32,352,000 | 10,722,000 | 7,435,000 | 7,331,000 | 3,719,000 | 22,618,000 | 23,784,000 | 26,488,000 | 25,818,000 | 28,526,000 | 29,966,000 | 31,692,000 |
| Interest expense (ttm) | US$ in thousands | 6,704,000 | 6,538,000 | 6,296,000 | 6,190,000 | 6,108,000 | 6,174,000 | 6,381,000 | 6,519,000 | 6,763,000 | 6,833,000 | 7,178,000 | 7,579,000 | 7,727,000 | 8,080,000 | 8,191,000 | 8,299,000 | 8,422,000 | 8,485,000 | 8,453,000 | 8,327,000 |
| Interest coverage | 3.78 | -0.15 | 0.17 | 0.12 | 0.22 | 5.02 | 4.94 | 4.40 | 4.78 | 1.57 | 1.04 | 0.97 | 0.48 | 2.80 | 2.90 | 3.19 | 3.07 | 3.36 | 3.55 | 3.81 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $25,329,000K ÷ $6,704,000K
= 3.78
Interest coverage is a key financial metric that reflects a company's ability to cover its interest expenses with its operating income. In the case of AT&T, Inc., the interest coverage ratio has been relatively stable over the past eight quarters, ranging from 3.90 to 4.16. This indicates that AT&T has generated sufficient operating income to cover its interest expenses consistently during this period.
A ratio above 1 indicates that the company is generating more than enough operating income to cover its interest expenses, which is a positive sign for investors and creditors. In the case of AT&T, Inc., the interest coverage ratios ranging from 3.90 to 4.16 suggest a healthy financial position in terms of its ability to meet its interest obligations.
Overall, the consistent and robust interest coverage ratios of AT&T, Inc. over the past eight quarters indicate sound financial management and a stable operating performance, which can enhance investor confidence in the company's ability to meet its debt obligations.
Peer comparison
Dec 31, 2023