Stock Analysis on Net
Stock Analysis on Net

AT&T Inc. (NYSE:T)

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Common-Size Income Statement

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AT&T Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Service
Equipment
Operating revenues
Equipment
Broadcast, programming and operations
Other cost of revenues, exclusive of depreciation and amortization
Cost of revenues
Gross profit
Selling, general and administrative
Asset impairments and abandonments and restructuring
Depreciation and amortization
Operating income (loss)
Interest expense
Equity in net income of affiliates
Other income (expense), net
Other income (expense)
Income (loss) from continuing operations before income taxes
Income tax expense on continuing operations
Income (loss) from continuing operations
Loss from discontinued operations, net of tax
Net income (loss)
Net income attributable to noncontrolling interest
Net income (loss) attributable to AT&T
Preferred stock dividends
Net income (loss) attributable to common stock

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).

Revenue Composition
The proportion of service revenues as a percentage of total operating revenues demonstrated a gradual decline from 88.94% in 2020 to approximately 81.85% by 2024. Conversely, equipment revenues increased from 11.06% to around 18.15% over the same period, indicating a shift towards higher contributions from equipment sales relative to the service segment.
Costs and Expenses
The cost of revenues as a percentage of operating revenues decreased from -46.53% in 2020 to -40.23% in 2024, reflecting an improvement in gross margin. Notably, 'Other cost of revenues, exclusive of depreciation and amortization' rose in magnitude from -19.16% to near -22.05%, suggesting increased expenses in this category. Depreciation and amortization costs remained fairly steady between -13.54% and -16.82% throughout the period. Selling, general and administrative expenses hovered consistently around -22% to -24%, showing relative stability in overhead costs.
Profitability
Gross profit margins improved significantly, increasing from 53.47% in 2020 to about 59.77% in 2024, indicating enhanced profitability at the gross level. Operating income exhibited marked volatility: starting low at 3.73% in 2020, peaking at 19.16% in 2023, but with a notable dip into negative territory (-3.8%) in 2022. Despite fluctuations, the operating margin remained positive by 2024 at 15.57%. The company experienced irregular impacts from asset impairments and restructuring, peaking sharply at -22.77% in 2022 before returning to a lower magnitude around -4.15% by 2024.
Net Income Trends
Net income attributable to the company showed significant variability. It was negative in 2020 (-3.01%), turned strongly positive through 2021 (11.89%), dropped substantially in 2022 (-7.06%), and recovered again in 2023 (11.76%) with a slight decrease in 2024 (8.95%). This pattern reflects volatility possibly linked to extraordinary items or market conditions. Income tax expenses remained relatively steady around -3.1% to -3.6%, and interest expenses slightly increased in relative terms from -4.61% to -5.52%, indicating a rising cost of debt over time.
Other Income and Equity Earnings
Other income (expense), net, showed considerable variation, with a notable positive spike in 2021 (5.83%) and more moderate positive figures in subsequent years. Equity in net income of affiliates consistently contributed positively, increasing from 0.06% in 2020 to 1.63% by 2024, enhancing overall profitability through investments in affiliated companies.
Overall Financial Position Evaluation
Over the five-year period, the entity exhibited improving gross profitability and a shift in revenue mix favoring equipment sales. Operating income displayed significant volatility, influenced particularly by large impairments in 2022. The net income trajectory reflected this volatility but recovered strongly after 2022. Expense management remained relatively consistent, although increasing interest expense and restructuring costs warrant monitoring. The steady positive contribution from equity affiliates and improved gross margins suggest areas of operational strength amidst fluctuations in core profitability metrics.