Stock Analysis on Net

AT&T Inc. (NYSE:T)

Analysis of Debt 

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Total Debt (Carrying Amount)

AT&T Inc., balance sheet: debt

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt maturing within one year 24,630  3,470  11,838  10,255  38,374 
Long-term debt, excluding maturing within one year 152,724  153,775  151,309  166,250  125,972 
Total debt (carrying amount) 177,354  157,245  163,147  176,505  164,346 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. AT&T Inc. total debt decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Total Debt (Fair Value)

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Dec 31, 2021
Selected Financial Data (US$ in millions)
Notes and debentures 194,891 
Commercial paper 6,586 
Bank borrowings — 
Finance lease obligations 1,621 
Other — 
Total debt (fair value) 203,098 
Financial Ratio
Debt, fair value to carrying amount ratio 1.15

Based on: 10-K (reporting date: 2021-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate of long-term debt portfolio, including, credit agreement borrowings and the impact of derivatives: 3.80%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.80% 170,768  6,489 
Total 170,768  6,489 
3.80%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 6,489 ÷ 170,768 = 3.80%


Interest Costs Incurred

AT&T Inc., interest costs incurred

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Interest expense 6,884  7,925  8,422  7,957  6,300 
Capitalized interest 954  123  200  493  903 
Interest expense incurred 7,838  8,048  8,622  8,450  7,203 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. AT&T Inc. interest expense decreased from 2019 to 2020 and from 2020 to 2021.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. AT&T Inc. capitalized interest decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Interest expense incurred Total interest costs incurred during the period and either capitalized or charged against earnings. AT&T Inc. interest expense incurred decreased from 2019 to 2020 and from 2020 to 2021.

Adjusted Interest Coverage Ratio

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T 20,081  (5,176) 13,903  19,370  29,450 
Add: Net income attributable to noncontrolling interest 1,398  1,355  1,072  583  397 
Add: Income tax expense 5,468  965  3,493  4,920  (14,708)
Add: Interest expense 6,884  7,925  8,422  7,957  6,300 
Earnings before interest and tax (EBIT) 33,831  5,069  26,890  32,830  21,439 
 
Interest expense incurred 7,838  8,048  8,622  8,450  7,203 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 4.91 0.64 3.19 4.13 3.40
Adjusted interest coverage ratio (with capitalized interest)2 4.32 0.63 3.12 3.89 2.98

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 33,831 ÷ 6,884 = 4.91

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest expense incurred
= 33,831 ÷ 7,838 = 4.32


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). AT&T Inc. adjusted interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.