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


See also:

AT&T Inc Interest Coverage (Quarterly Data)