Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
AT&T Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | AT&T Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | AT&T Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | AT&T Inc. payables turnover ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | AT&T Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | AT&T Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | AT&T Inc. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | AT&T Inc. cash conversion cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Inventory Turnover
AT&T Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 50,123) | 50,848) | 79,807) | 79,920) | 84,141) | |
| Inventories | 2,177) | 3,123) | 3,464) | 3,695) | 2,864) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 23.02 | 16.28 | 23.04 | 21.63 | 29.38 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | 17.99 | 19.22 | 14.26 | 11.19 | 19.21 | |
| Verizon Communications Inc. | 26.68 | 24.76 | 18.43 | 28.51 | 38.49 | |
| Inventory Turnover, Sector | ||||||
| Telecommunication Services | 22.87 | 19.77 | 19.01 | 19.88 | 29.98 | |
| Inventory Turnover, Industry | ||||||
| Communication Services | 52.08 | 44.81 | 39.09 | 36.78 | 47.97 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 50,123 ÷ 2,177 = 23.02
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | AT&T Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Receivables Turnover
AT&T Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 122,428) | 120,741) | 168,864) | 171,760) | 181,193) | |
| Accounts receivable, net of related allowance for credit loss | 10,289) | 11,466) | 17,571) | 20,215) | 22,636) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 11.90 | 10.53 | 9.61 | 8.50 | 8.00 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | 16.74 | 17.90 | 19.10 | 16.00 | 23.58 | |
| Verizon Communications Inc. | 5.34 | 5.58 | 5.60 | 5.36 | 5.19 | |
| Receivables Turnover, Sector | ||||||
| Telecommunication Services | 8.36 | 8.34 | 8.39 | 7.61 | 7.17 | |
| Receivables Turnover, Industry | ||||||
| Communication Services | 7.76 | 8.07 | 7.77 | 7.20 | 7.04 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Receivables turnover = Operating revenues ÷ Accounts receivable, net of related allowance for credit loss
= 122,428 ÷ 10,289 = 11.90
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | AT&T Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
AT&T Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 50,123) | 50,848) | 79,807) | 79,920) | 84,141) | |
| Accounts payable | 27,309) | 31,101) | 30,756) | 31,836) | 29,640) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 1.84 | 1.63 | 2.59 | 2.51 | 2.84 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | 5.42 | 5.02 | 5.63 | 5.08 | 4.29 | |
| Verizon Communications Inc. | 5.48 | 6.76 | 7.00 | 7.68 | 7.08 | |
| Payables Turnover, Sector | ||||||
| Telecommunication Services | 3.15 | 3.11 | 3.81 | 3.62 | 3.78 | |
| Payables Turnover, Industry | ||||||
| Communication Services | 4.91 | 4.73 | 4.79 | 4.63 | 4.48 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 50,123 ÷ 27,309 = 1.84
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | AT&T Inc. payables turnover ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Working Capital Turnover
AT&T Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 36,458) | 33,108) | 59,997) | 52,008) | 54,761) | |
| Less: Current liabilities | 51,127) | 56,173) | 85,588) | 63,438) | 68,911) | |
| Working capital | (14,669) | (23,065) | (25,591) | (11,430) | (14,150) | |
| Operating revenues | 122,428) | 120,741) | 168,864) | 171,760) | 181,193) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | — | — | — | 31.35 | — | |
| Verizon Communications Inc. | — | — | — | 8.59 | — | |
| Working Capital Turnover, Sector | ||||||
| Telecommunication Services | — | — | — | 64.80 | — | |
| Working Capital Turnover, Industry | ||||||
| Communication Services | 10.57 | 11.82 | 7.57 | 4.32 | 6.31 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Working capital turnover = Operating revenues ÷ Working capital
= 122,428 ÷ -14,669 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
AT&T Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 23.02 | 16.28 | 23.04 | 21.63 | 29.38 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 16 | 22 | 16 | 17 | 12 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| T-Mobile US Inc. | 20 | 19 | 26 | 33 | 19 | |
| Verizon Communications Inc. | 14 | 15 | 20 | 13 | 9 | |
| Average Inventory Processing Period, Sector | ||||||
| Telecommunication Services | 16 | 18 | 19 | 18 | 12 | |
| Average Inventory Processing Period, Industry | ||||||
| Communication Services | 7 | 8 | 9 | 10 | 8 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 23.02 = 16
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
AT&T Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 11.90 | 10.53 | 9.61 | 8.50 | 8.00 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 31 | 35 | 38 | 43 | 46 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| T-Mobile US Inc. | 22 | 20 | 19 | 23 | 15 | |
| Verizon Communications Inc. | 68 | 65 | 65 | 68 | 70 | |
| Average Receivable Collection Period, Sector | ||||||
| Telecommunication Services | 44 | 44 | 44 | 48 | 51 | |
| Average Receivable Collection Period, Industry | ||||||
| Communication Services | 47 | 45 | 47 | 51 | 52 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.90 = 31
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | AT&T Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
AT&T Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 16 | 22 | 16 | 17 | 12 | |
| Average receivable collection period | 31 | 35 | 38 | 43 | 46 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 47 | 57 | 54 | 60 | 58 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| T-Mobile US Inc. | 42 | 39 | 45 | 56 | 34 | |
| Verizon Communications Inc. | 82 | 80 | 85 | 81 | 79 | |
| Operating Cycle, Sector | ||||||
| Telecommunication Services | 60 | 62 | 63 | 66 | 63 | |
| Operating Cycle, Industry | ||||||
| Communication Services | 54 | 53 | 56 | 61 | 60 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 16 + 31 = 47
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | AT&T Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Average Payables Payment Period
AT&T Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 1.84 | 1.63 | 2.59 | 2.51 | 2.84 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 199 | 223 | 141 | 145 | 129 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| T-Mobile US Inc. | 67 | 73 | 65 | 72 | 85 | |
| Verizon Communications Inc. | 67 | 54 | 52 | 48 | 52 | |
| Average Payables Payment Period, Sector | ||||||
| Telecommunication Services | 116 | 118 | 96 | 101 | 97 | |
| Average Payables Payment Period, Industry | ||||||
| Communication Services | 74 | 77 | 76 | 79 | 81 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.84 = 199
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | AT&T Inc. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
Cash Conversion Cycle
AT&T Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 16 | 22 | 16 | 17 | 12 | |
| Average receivable collection period | 31 | 35 | 38 | 43 | 46 | |
| Average payables payment period | 199 | 223 | 141 | 145 | 129 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -152 | -166 | -87 | -85 | -71 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| T-Mobile US Inc. | -25 | -34 | -20 | -16 | -51 | |
| Verizon Communications Inc. | 15 | 26 | 33 | 33 | 27 | |
| Cash Conversion Cycle, Sector | ||||||
| Telecommunication Services | -56 | -56 | -33 | -35 | -34 | |
| Cash Conversion Cycle, Industry | ||||||
| Communication Services | -20 | -24 | -20 | -18 | -21 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 16 + 31 – 199 = -152
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | AT&T Inc. cash conversion cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |