AT&T Inc. (NYSE:T)

Goodwill

The goodwill value shows a significant decline from 135,259 million US$ in 2020 to 63,432 million US$ in 2024, indicating substantial impairment or divestitures impacting this asset category over the five-year period.

Wireless licenses

Wireless licenses increased steadily from 2,558 million US$ in 2020 to a peak of 3,057 million US$ in 2023, before dropping to 2,656 million US$ in 2024. This demonstrates moderate growth followed by a slight decline.

Orbital slots and Distribution network

Orbital slots and distribution network figures were reported only for 2020, at 5,825 million US$ and 18,414 million US$ respectively, with no subsequent data, limiting trend analysis.

Released television and film content

This asset remained nearly constant in 2020 and 2021, around 10,940 million US$, then no further data was provided.

Customer lists and relationships

These intangible assets decreased markedly from 3,640 million US$ in 2020 to 275 million US$ in 2024, suggesting significant amortization or disposals.

Trademarks, trade names and other

This category experienced a drastic drop from 30,880 million US$ in 2020 to only 37 million US$ in 2024, reflecting disposals, impairments, or reclassifications.

Amortized intangible assets, gross carrying amount

There was a sharp decrease from 72,257 million US$ in 2020 to approximately 3,646 million US$ in 2023, showing major reduction of amortized intangible assets.

Accumulated amortization

Accumulated amortization increased in absolute value from -16,910 million US$ to -19,523 million US$ between 2020 and 2021, then reduced drastically to around -994 million US$ by 2024, aligned with the overall decline in amortizable assets.

Amortized intangible assets, net

Net amortized intangible assets fell significantly from 55,347 million US$ in 2020 to 1,974 million US$ in 2024, illustrating decreasing book value after amortization impacts.

Wireless licenses (repeated)

Another wireless licenses category measured in millions increased consistently from 85,728 million US$ in 2020 up to 125,075 million US$ in 2024, indicating rising investment or revaluation in this asset.

Trade names

Trade names remained stable at 5,241 million US$ annually throughout the reported periods.

Indefinite-lived intangible assets not subject to amortization

This category saw continuous growth from 90,969 million US$ in 2020 to 130,316 million US$ in 2024, reflecting expansion or reassessment of intangible assets with indefinite useful lives.

Other intangible assets

Other intangible assets rose from 146,316 million US$ in 2020 to 159,493 million US$ in 2021, then trended downward to approximately 132,290 million US$ by 2024, showing some volatility.

Goodwill and other intangible assets

Combined goodwill and other intangible assets initially increased from 281,575 million US$ in 2020 to 292,716 million US$ in 2021, before declining sharply to near 195,722 million US$ in 2024, consistent with earlier noted decreases in goodwill and certain intangible asset categories.

Total assets (reported vs. adjusted)

Reported total assets show a declining trend after 2021, dropping significantly from 551,622 million USD in 2021 to 394,795 million USD in 2024. Adjusted total assets, which likely exclude goodwill or similar intangible assets, also decline over the same period, moving from 418,399 million USD in 2021 down to 331,363 million USD in 2024. Both reported and adjusted figures peak in 2021 but experience a reduction nearing 25% by 2024 relative to that peak.

Stockholders’ equity attributable to AT&T (reported)

Reported equity increases slightly from 161,673 million USD in 2020 to a peak of 166,332 million USD in 2021, then falls sharply to 97,500 million USD in 2022. It recovers modestly in the following years, reaching 104,372 million USD by 2024. This suggests a significant restructuring or write-down event occurred in 2022, with partial recovery in equity thereafter.

Stockholders’ equity attributable to AT&T (adjusted)

Adjusted equity, which excludes certain intangible assets, shows a somewhat different pattern. It rises steadily from 26,414 million USD in 2020 to 40,940 million USD in 2024. This consistent increase indicates improving or stabilizing core equity value once adjustments for intangible assets are made, despite fluctuations in reported equity.

Comparative insights

The gap between reported and adjusted figures is substantial, indicating significant intangible assets or goodwill impacting the reported numbers. While reported assets and equity show volatility, the adjusted figures portray a more stable and gradually improving financial base when excluding these intangibles. This disparity suggests that the company’s true asset and equity values, net of goodwill, may be more conservative and less volatile than the reported totals suggest.

Total Asset Turnover

The reported total asset turnover demonstrates a gradual decline from 0.33 in 2020 to 0.30 in 2022 and 2023, before slightly increasing to 0.31 in 2024. A similar trend is observed in the adjusted total asset turnover which decreased from 0.44 in 2020 to 0.36 in 2022 and 2023, following a minor uptick to 0.37 in 2024. This indicates a somewhat diminishing efficiency in utilizing assets to generate revenue over the years, with a marginal improvement in the most recent period.

Financial Leverage

The reported financial leverage ratio rises from 3.25 in 2020 to a peak of 4.13 in 2022, before declining to 3.78 by 2024. In contrast, the adjusted financial leverage shows a consistent downward trend, declining significantly from 14.78 in 2020 to 8.09 in 2024. The downward trend in adjusted financial leverage suggests a reduction in reliance on debt when goodwill is adjusted, indicating efforts to lower financial risk over the analyzed period.

Return on Equity (ROE)

The reported ROE exhibits considerable volatility, starting with a negative return of -3.2% in 2020, improving to 12.07% in 2021, plummeting to -8.74% in 2022, followed by recovery to 10.49% in 2024. The adjusted ROE shows even more pronounced fluctuations, ranging from -19.6% in 2020 to a high of 60.65% in 2021, falling sharply to -28.79% in 2022, then recovering to 26.74% in 2024. These variations depict periods of significant fluctuation in net profitability relative to equity, with noticeable volatility possibly related to underlying goodwill adjustments.

Return on Assets (ROA)

The reported ROA follows a similar pattern to ROE, with a negative value of -0.98% in 2020, increasing to 3.64% in 2021, dropping to -2.12% in 2022, then improving to 2.77% in 2024. Adjusted ROA mirrors this trend but with slightly more extreme values, from -1.33% in 2020 to 4.80% in 2021, down to -2.54% in 2022, and then up to 3.30% in 2024. These movements indicate fluctuating asset profitability, with overall recovery following a period of underperformance around 2022.

Overall Insights

The financial data reflects fluctuating performance during the period, with asset efficiency showing a minor decline but then stabilizing. There is a notable reduction in adjusted financial leverage, suggesting a strategic reduction in debt or revaluation of liabilities when goodwill is excluded. Profitability ratios exhibit significant volatility, especially when adjusted for goodwill, highlighting sensitivity to non-operational factors or impairments that affect net income and equity. The recovery in profitability metrics towards the later periods may signal improved operational outcomes or successful financial management initiatives.

Total Assets

The reported total assets exhibit a decreasing trend from 525,761 million US dollars in 2020 to 394,795 million US dollars in 2024. This represents a substantial decline over the five-year period, with a notable drop between 2021 and 2022. Similarly, adjusted total assets follow the same downward pattern, decreasing from 390,502 million US dollars in 2020 to 331,363 million US dollars in 2024. Both reported and adjusted figures indicate a contraction in the asset base over time, though adjusted assets are consistently lower by a significant margin, likely reflecting the exclusion of goodwill.

Total Asset Turnover

Reported total asset turnover showed a slight decline from 0.33 in 2020 to 0.31 in 2024, with the lowest point at 0.30 during 2022 and 2023. This suggests a modest decrease in efficiency in generating revenues from the asset base when measured on a reported basis. Conversely, adjusted total asset turnover started higher at 0.44 in 2020 and declined more noticeably to 0.37 in 2024. Although the turnover decreases, it remains above the reported turnover, highlighting higher operational efficiency when goodwill is excluded from total assets. Both turnover measures demonstrate a general downward trend but show signs of stabilization in the latter years.

Overall Insights

The data reveal a contraction in both reported and adjusted asset bases over the period, accompanied by a gradual decline in asset turnover ratios. The reduction in assets may be indicative of divestitures, asset impairments, or shifts in accounting treatments. The declining asset turnover ratios could suggest challenges in maintaining revenue generation efficiency relative to asset size. However, the adjusted turnover ratios being consistently higher imply that goodwill adjustments provide a clearer reflection of operational efficiency, which remains relatively stable in recent years. The company's operational capacity to utilize its tangible and intangible assets seems to have slightly weakened but shows indications of plateauing towards the end of the period.

The financial data reveals several noteworthy trends over the five-year period for the analyzed company, focusing on reported and goodwill-adjusted figures.

Total Assets

Reported total assets exhibit a decline after peaking in 2021, decreasing from approximately 551.6 billion USD to 394.8 billion USD by 2024. The adjusted total assets follow a similar pattern, falling from 418.4 billion USD in 2021 to 331.4 billion USD in 2024. This downward trend suggests substantial asset reductions or divestitures occurring after 2021, possibly linked to revaluation or impairment adjustments reflected in the goodwill adjustment.

Stockholders’ Equity Attributable to the Company

Reported equity increases slightly from 161.7 billion USD in 2020 to a peak near 166.3 billion USD in 2021, then drops sharply to 97.5 billion USD in 2022, followed by a modest recovery to 104.4 billion USD in 2024. In contrast, adjusted equity is much lower in absolute terms and shows a more volatile pattern, starting at roughly 26.4 billion USD in 2020, rising to 33.1 billion USD in 2021, then declining to 29.6 billion USD in 2022 before gradually increasing to 40.9 billion USD by 2024. The pronounced discrepancy between reported and adjusted equity highlights significant goodwill or intangible asset write-downs impacting the adjusted figures, which appear to stabilize and slightly improve in recent years.

Financial Leverage

Reported financial leverage ratios have increased from 3.25 in 2020 to a peak of 4.13 in 2022, then progressively decreased to 3.78 in 2024. Meanwhile, adjusted leverage ratios start very high at 14.78 in 2020 and steadily decline to 8.09 by 2024. The elevated adjusted leverage compared to reported leverage indicates that when removing goodwill, the company appears much more leveraged against its equity base. The declining trend in adjusted leverage suggests ongoing efforts to reduce debt levels or improve equity quality, thereby lowering risk exposure over time.

Overall, the data points to a substantial reduction in asset size and equity after 2021, likely driven by reassessment of goodwill and intangible assets. Alongside these changes, the adjusted financial ratios provide a more conservative view of leverage, highlighting a period of deleveraging and balance sheet strengthening toward 2024. The divergence between reported and adjusted figures emphasizes the impact of goodwill impairments on the company’s financial position and leverage metrics.

Reported Stockholders’ Equity

The reported stockholders’ equity attributable to AT&T exhibited a generally fluctuating trend over the five-year period. It increased from approximately $161.7 billion at the end of 2020 to about $166.3 billion at the end of 2021, indicating growth in equity. However, there was a significant decline in 2022, dropping sharply to $97.5 billion. Subsequently, a moderate recovery occurred in 2023 and 2024, with values rising to $103.3 billion and $104.4 billion, respectively. Despite this rebound, the equity remained substantially below the earlier high in 2021.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity, which likely excludes goodwill and other intangible asset effects, showed a contrasting pattern to the reported equity. Starting from a much lower base of around $26.4 billion in 2020, it increased steadily through the period with some minor fluctuations. A peak was reached in 2021 at roughly $33.1 billion, followed by a slight decrease in 2022 to approximately $29.6 billion. This was followed by consecutive increases in 2023 and 2024, reaching about $35.4 billion and $40.9 billion, respectively. Relative to reported equity, the adjusted measure indicates a more consistent upward trend especially in the latter years.

Reported Return on Equity (ROE)

The reported ROE demonstrated significant volatility throughout the period. The value was negative at -3.2% in 2020, indicating a loss-generating position relative to equity. It improved markedly in 2021 to 12.07%, suggesting a year of profitable returns. However, this was followed by a sharp reversal to -8.74% in 2022, implying losses relative to shareholders' equity once again. The subsequent years showed a recovery with ROE climbing to 13.94% in 2023 and slightly declining to 10.49% in 2024, reflecting restored profitability but with some variability.

Adjusted Return on Equity (ROE)

The adjusted ROE, calculated on the basis of adjusted equity, showed even more pronounced fluctuations. It started deeply negative at -19.6% in 2020, improved dramatically to a high of 60.65% in 2021, which is an exceptionally strong return. This was followed by a steep decline to -28.79% in 2022, indicating very poor profitability relative to adjusted equity. The following years saw a robust recovery with adjusted ROE reaching 40.63% in 2023 and then settling at a still strong 26.74% in 2024. These movements suggest that underlying profitability, when excluding goodwill effects, experienced greater volatility but also showed periods of significant strength.

Overall Analysis

Over the five-year span, both reported and adjusted equity measures demonstrated fluctuations, but adjusted equity showed a more consistent upward trajectory from 2022 onwards. The reported equity saw a notable decline in 2022, partially recovering thereafter. Profitability, as measured by both reported and adjusted ROE, exhibited high volatility with substantial negative returns in 2020 and 2022 but also impressive recoveries in the intervening and subsequent years. The adjusted ROE values were more extreme, implying that excluding goodwill adjustments highlights higher variability in returns. The trends suggest periods of both financial stress and recovery, with the company's underlying equity and profitability showing considerable sensitivity to economic or operational changes during this time frame.

Total Assets

The reported total assets show a fluctuating pattern over the analyzed period. They increased from 525,761 million USD in 2020 to 551,622 million USD in 2021, followed by a sharp decline to 402,853 million USD in 2022. From 2022 onwards, the reported total assets remained relatively stable but exhibited a slight downward trend, reaching 394,795 million USD in 2024.

When adjusted for goodwill, total assets follow a similar trajectory, beginning at 390,502 million USD in 2020 and rising to 418,399 million USD in 2021. Thereafter, there is a decline to 334,958 million USD in 2022, with a marginal decrease continuing through to 331,363 million USD in 2024. This suggests that the adjustments made for goodwill reduce the asset base significantly, while reflecting similar trend movements.

Return on Assets (ROA)

The reported ROA indicates significant volatility during the period. It starts at a negative value of -0.98% in 2020, improves markedly to 3.64% in 2021, then deteriorates sharply to -2.12% in 2022. From 2022 onwards, the reported ROA improves again, reaching 3.54% in 2023 and slightly decreasing to 2.77% in 2024. This pattern highlights cyclic profitability challenges and recoveries in asset utilization.

The adjusted ROA, which takes goodwill into account, mirrors the reported ROA trends but with generally lower negative values during downturns and higher positive values during upswings. It starts at -1.33% in 2020, rises to 4.8% in 2021, declines to -2.54% in 2022, and then recovers to 4.25% in 2023 and 3.3% in 2024. This suggests that goodwill adjustments emphasize the impact of asset valuation on profitability, making the fluctuations more pronounced.

Overall Insights

The data reflects considerable variability in the company's asset base and profitability over the five-year period. The initial growth phase in both total assets and ROA up to 2021 is followed by a notable contraction in assets and a decline into negative profitability in 2022. Subsequent recovery in profitability is observed in the latter years, although total assets show a mild decreasing trend. Adjustments for goodwill generally lower the asset base and demonstrate a more volatile ROA, indicating that intangible asset valuations significantly influence financial performance measurements.