Stock Analysis on Net
Stock Analysis on Net
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AT&T Inc. (NYSE:T)

Analysis of Debt

Advanced level

Total Debt (Carrying Amount)

AT&T Inc., balance sheet: debt

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt maturing within one year 11,838  10,255  38,374  9,832  7,636 
Long-term debt, excluding maturing within one year 151,309  166,250  125,972  113,681  118,515 
Total debt (carrying amount) 163,147  176,505  164,346  123,513  126,151 

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

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.’s total debt increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Total Debt (Fair Value)

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Dec 31, 2019
Selected Financial Data (US$ in millions)
Notes and debentures 182,124 
Commercial paper — 
Bank borrowings
Finance lease obligations 2,034 
Other — 
Total debt (fair value) 184,162 
Financial Ratio
Debt, fair value to carrying amount ratio 1.13

Based on: 10-K (filing date: 2020-02-20).


Weighted-average Interest Rate on Debt

Weighted-average interest rate of long-term debt, including the impact of derivatives: 4.40%

Interest Rate Debt Amount1 Interest Rate × Debt Amount Weighted-average Interest Rate2
4.40% 163,143  7,178 
Total 163,143  7,178 
4.40%

Based on: 10-K (filing date: 2020-02-20).

1 US$ in millions

2 Weighted-average interest rate = 100 × 7,178 ÷ 163,143 = 4.40%


Interest Costs Incurred

AT&T Inc., interest costs incurred

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Interest expense 8,422  7,957  6,300  4,910  4,120 
Capitalized interest 200  493  903  892  797 
Interest expense incurred 8,622  8,450  7,203  5,802  4,917 

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. AT&T Inc.’s interest expense increased from 2017 to 2018 and from 2018 to 2019.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. AT&T Inc.’s capitalized interest decreased from 2017 to 2018 and from 2018 to 2019.
Interest expense incurred Total interest costs incurred during the period and either capitalized or charged against earnings. AT&T Inc.’s interest expense incurred increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Interest Coverage Ratio

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to AT&T 13,903  19,370  29,450  12,976  13,345 
Add: Net income attributable to noncontrolling interest 1,072  583  397  357  342 
Add: Income tax expense 3,493  4,920  (14,708) 6,479  7,005 
Add: Interest expense 8,422  7,957  6,300  4,910  4,120 
Earnings before interest and tax (EBIT) 26,890  32,830  21,439  24,722  24,812 
 
Interest expense incurred 8,622  8,450  7,203  5,802  4,917 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 3.19 4.13 3.40 5.04 6.02
Adjusted interest coverage ratio (with capitalized interest)2 3.12 3.89 2.98 4.26 5.05

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

2019 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 26,890 ÷ 8,422 = 3.19

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest expense incurred
= 26,890 ÷ 8,622 = 3.12


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.’s adjusted interest coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.