AT&T Inc (T)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.78 | 3.85 | 3.78 | 3.82 | 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 |
AT&T Inc's solvency ratios reflect a strong financial position with consistently low debt levels relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 across all reported periods, indicating that the company has no significant debt obligations compared to its total assets, capital, or equity.
The financial leverage ratio, which measures the extent to which the company relies on debt to fund its operations, has shown some fluctuation but generally remained within a reasonable range. Although the ratio increased from 3.07 in March 2020 to a peak of 4.13 in December 2022, it has since trended downwards to 3.78 as of December 2024. This suggests that while AT&T's leverage increased temporarily, the company has been effective in managing its debt levels and has not overleveraged its operations.
Overall, AT&T's solvency ratios indicate a sound financial position with minimal debt risk, and the company appears to have been prudent in maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.98 | 2.80 | 3.42 | 3.63 | 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 |
Based on the data provided for AT&T Inc's interest coverage ratio over multiple quarters, we can observe fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio indicates the company's ability to meet interest payments on its outstanding debt using its operating income.
From March 2020 to June 2021, AT&T's interest coverage ratio ranged between 0.97 and 3.19, indicating some level of variability in its ability to cover interest expenses. However, the ratio dropped significantly to 0.48 in December 2020, which could be a cause for concern as it suggests the company's operating income may not have been sufficient to cover its interest payments during that period.
Subsequently, from December 2021 to September 2022, the interest coverage ratio improved significantly, ranging from 4.78 to 5.02. This indicates that AT&T was in a much better position to cover its interest expenses during those quarters.
However, the interest coverage ratio dropped sharply to 0.22 in December 2022, signifying a potential strain on the company's ability to cover its interest obligations with its operating income.
In the following quarters, the interest coverage ratio remained around 3.00, suggesting a moderate level of stability in AT&T's ability to meet its interest payments.
The negative interest coverage ratio of -0.15 in September 2023 indicates that AT&T's operating income was not sufficient to cover its interest expenses during that quarter, which may raise concerns about the company's financial health during that specific period.
Overall, the data shows fluctuations in AT&T Inc's interest coverage ratio over the quarters, highlighting periods of both strength and weakness in the company's ability to cover its interest expenses with its operating income. Monitoring this ratio is important for assessing AT&T's financial stability and its capacity to meet its debt obligations.