Common-Size Balance Sheet: Assets
AT&T Inc., common-size consolidated balance sheet: assets
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data reveals several notable trends in the composition of the company's assets over the analyzed five-year period.
- Liquidity and Current Assets
- Cash and cash equivalents as a percentage of total assets show a fluctuating trend, peaking at 3.84% in 2021 before declining to 0.84% by 2024, indicating a reduction in liquid reserves relative to the asset base. Similarly, accounts receivable decreased steadily from 3.84% in 2020 to 2.44% in 2024, reflecting a possible tightening of credit policies or improved collection. Inventories remained relatively stable, hovering around 0.5% to 0.8%, without significant variation. Prepaid and other current assets increased from 3.49% in 2020 to a peak of 4.24% in 2023, then slightly declined to 4.04% in 2024. Overall, current assets experienced a downward trend from 10.88% in 2021 to 7.89% in 2024, suggesting a relative decrease in short-term asset holdings.
- Noncurrent Inventories and Distribution Networks
- Data for noncurrent inventories and theatrical film and television production costs is incomplete beyond 2021, where it rose from 2.81% to 3.44%, indicating some growth. Distribution networks decreased from 2.62% in 2020 to 2.16% in 2021, with no data thereafter, limiting further assessment.
- Fixed Assets and Property
- Property, plant and equipment (PPE) showed a substantial increase, rising from 24.22% of total assets in 2020 to 32.64% in 2024. This growth stabilizes around the early 30% range from 2022 onward, suggesting increased investment or revaluation of fixed assets contributing to the asset base.
- Intangible Assets
- Goodwill, net, demonstrates a marked decline from 25.73% in 2020 to 16.07% in 2024, indicating potential impairment charges or disposals. Conversely, licenses, net, exhibit a strong upward trend from 17.85% to 32.18%, implying significant acquisition or capitalization in this category. Other intangible assets decreased sharply from 7.36% in 2020 to approximately 1.3% in subsequent years, remaining stable thereafter. The aggregate intangible assets, encompassing goodwill, licenses, and other intangibles, rose moderately from 27.83% in 2020 to 33.51% in 2024, reflecting a shift in composition towards licenses.
- Investments and Lease Assets
- Investments in and advances to equity affiliates peaked at 1.32% in 2021 before declining to nearly negligible levels by 2024, indicating divestment or reduced financing in affiliates. Operating lease right-of-use assets slightly decreased from 4.7% in 2020 to a low of 4.38% in 2021 but then recovered modestly to 5.3% by 2024, suggesting stability in lease commitments relative to total assets.
- Other Assets and Overall Composition
- Other assets remained relatively stable in the range of 4% to 5% of total assets across the years. Noncurrent assets as a whole consistently constitute the majority of the asset base, ranging from approximately 89% to 92%, underscoring the company's asset structure being heavily weighted toward long-term holdings versus current assets.
In summary, the analyzed data points to a gradual shift in asset structure characterized by a reduction in liquidity and current assets, substantial growth and stability in fixed assets, a strategic reallocation within intangible assets favoring licenses over goodwill, and a relatively stable lease obligation profile. These trends may reflect strategic investments in property and intellectual property assets alongside careful management of receivables and liquid assets.