AT&T Inc. (NYSE:T)

Asset Turnover

The reported and adjusted total asset turnover ratios exhibit a slight overall decline from 0.33 in 2020 to approximately 0.30-0.31 in the years following, indicating a marginal decrease in the efficiency with which assets generate sales. The ratios stabilized around 0.30 from 2022 onwards, showing no significant improvement but also no further deterioration.

Current Ratio

Both reported and adjusted current ratios show a decreasing trend from 0.82-0.84 in 2020 to a low point near 0.59-0.60 in 2022. A partial recovery occurs in 2023, with ratios rising to about 0.71-0.72, followed by a slight decline in 2024 to around 0.66-0.67. This pattern suggests fluctuations in short-term liquidity, with liquidity weakening markedly by 2022 and partially improving thereafter, though it remains below the 2020 level.

Debt to Equity Ratio

The reported debt to equity ratio increases significantly from 0.97 in 2020 to a peak of 1.39 in 2022, then declines to 1.18 by 2024. The adjusted ratios mirror this trend but are consistently lower, rising from 0.76 to 0.96 before decreasing to 0.80 by the end of the period. This indicates higher leverage peaking in 2022 followed by deleveraging tendencies in subsequent years.

Debt to Capital Ratio

The reported debt to capital ratio trends upward from 0.49 in 2020 to a maximum of 0.58 in 2022, then reduces to 0.54 in 2024. Adjusted figures similarly rise from 0.43 to 0.49 before declining back to 0.45. This suggests a moderate increase in the proportion of debt financing relative to total capital around 2022, followed by efforts to reduce reliance on debt.

Financial Leverage

The reported financial leverage ratio increases substantially from 3.25 in 2020 to 4.13 in 2022, with a gradual decrease to 3.78 by 2024. The adjusted leverage ratios follow the same upward and then downward trend but at lower levels (2.19 to 2.46 and back to 2.20). This confirms a peak in leverage usage around 2022 and subsequent partial reduction.

Net Profit Margin

Reported net profit margin exhibits high volatility, moving from a negative margin of -3.01% in 2020 to a positive 11.89% in 2021, slipping back down to -7.06% in 2022, then regaining positive margins in 2023 and 2024 at 11.76% and 8.95%, respectively. Adjusted margins reflect similar fluctuations but with lesser negative impacts, showing continuous recovery towards positive profitability by the end of the period. The pattern suggests recurring profitability challenges but overall improvement after 2022.

Return on Equity (ROE)

The reported ROE parallels net profit margin trends, with a negative return of -3.20% in 2020 rising to 12.07% in 2021, dropping sharply to -8.74% in 2022, then increasing again to positive returns in 2023 (13.94%) and 2024 (10.49%). Adjusted ROE data show less severity in negative performance and a more modest recovery, ending at 6.34% in 2024. These results indicate variability in shareholder returns with considerable improvement post-2022.

Return on Assets (ROA)

Reported ROA shows a similar volatile pattern with negative returns in 2020 (-0.98%) and 2022 (-2.12%), positive returns in 2021 (3.64%), 2023 (3.54%), and diminishing yet positive in 2024 (2.77%). Adjusted ROA metrics reflect reduced fluctuations and more consistent positive returns after 2022. Overall, the data denote instability in asset profitability, with recovery underway but ROA remaining at modest levels by 2024.

Operating Revenues

Operating revenues exhibited a declining trend from 2020 through 2022, dropping from 171,760 million US dollars in 2020 to 120,741 million US dollars in 2022. Following this decrease, revenues showed a slight increase in 2023 to 122,428 million US dollars but remained nearly flat into 2024 with a marginal decline to 122,336 million US dollars.

Total Assets

Total assets peaked in 2021 at 551,622 million US dollars, showing an increase from 525,761 million US dollars in 2020. Subsequently, total assets experienced a significant reduction, falling to 402,853 million US dollars in 2022. A slight recovery occurred in 2023 with total assets increasing to 407,060 million US dollars, followed by another decrease to 394,795 million US dollars in 2024.

Reported Total Asset Turnover

The reported total asset turnover ratio declined from 0.33 in 2020 to 0.31 in 2021, with a further drop to 0.30 in 2022. This ratio stabilized at 0.30 in 2023 and increased slightly back to 0.31 in 2024, suggesting a relatively consistent but reduced efficiency in generating revenues from assets compared to 2020 levels.

Adjusted Total Assets

Adjusted total assets closely followed the pattern of total assets, rising from 526,784 million US dollars in 2020 to 552,163 million US dollars in 2021, then declining sharply to 403,355 million US dollars in 2022. The adjusted figures show a modest rebound to 407,476 million US dollars in 2023 before decreasing again to 395,090 million US dollars in 2024.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrored the trend of the reported ratio, decreasing from 0.33 in 2020 to 0.31 in 2021 and 0.30 in 2022. The ratio remained stable at 0.30 in 2023 and increased slightly to 0.31 in 2024, indicating consistent performance when considering adjustments to asset values.

Current Assets

Current assets experienced an initial increase from 52,008 million US dollars in 2020 to 59,997 million US dollars in 2021. However, a notable decline followed, dropping sharply to 33,108 million USD in 2022, with slight fluctuations thereafter, reaching 31,168 million USD by the end of 2024.

Current Liabilities

Current liabilities showed an increasing trend in 2021, rising to 85,588 million USD from 63,438 million USD in 2020. This was followed by a significant decrease in 2022 to 56,173 million USD, continuing a downward trajectory through 2023 and 2024, ending at 46,872 million USD.

Reported Current Ratio

The reported current ratio, representing the ability to cover short-term obligations, declined steadily from 0.82 in 2020 to 0.59 in 2022, indicating a weakening liquidity position. Some recovery was observed in 2023, increasing to 0.71, but it fell again to 0.66 in 2024, remaining below the initial 2020 level.

Adjusted Current Assets

Adjusted current assets mirrored the pattern of current assets closely. Starting at 53,229 million USD in 2020, the value increased to 60,768 million USD in 2021, then sharply dropped to 33,696 million USD in 2022. The values showed minor increases and ended at 31,543 million USD in 2024.

Adjusted Current Ratio

The adjusted current ratio followed a similar pattern to the reported current ratio, declining from 0.84 in 2020 to 0.60 in 2022. It improved slightly to 0.72 in 2023 before dipping to 0.67 in 2024. These figures suggest consistent challenges in liquidity management over the observed periods.

Summary of Trends

Overall, the data indicates that liquidity, as measured by both reported and adjusted current ratios, weakened from 2020 to 2022, corresponding with a sharp decline in current assets and decrease in current liabilities after the peak in 2021. Although there was some recovery in liquidity ratios in 2023, the position deteriorated again in 2024. The fluctuations in current liabilities, particularly the significant drop post-2021, along with the decline in current assets, contributed to these liquidity changes. The adjusted figures align closely with reported data, reinforcing the consistency of the observed financial trends.

The financial data reveals several notable trends in debt levels, equity, and leverage ratios over the five-year period examined.

Total Debt

Total debt initially increased from 157,245 million US dollars in 2020 to a peak of 177,354 million in 2021. Subsequently, it decreased substantially to 135,890 million in 2022, before stabilizing slightly above 137,000 million in 2023 and further declining to 123,532 million in 2024. This pattern indicates an overall reduction in nominal debt after the 2021 peak, suggesting actions to deleverage or repay obligations.

Stockholders’ Equity Attributable to AT&T

Equity attributable to shareholders showed a slight increase from 161,673 million in 2020 to 166,332 million in 2021. However, it decreased sharply to 97,500 million in 2022, followed by a modest recovery to approximately 103,297 million in 2023 and 104,372 million in 2024. This significant drop in 2022 indicates a reduction in book equity, potentially due to losses, restructuring, or asset revaluation during that period, with partial recovery afterward.

Reported Debt to Equity Ratio

The reported debt to equity ratio rose from 0.97 in 2020 to a high of 1.39 in 2022, reflecting increased financial leverage mostly due to the decline in equity and still relatively high debt levels. This ratio then improved to 1.33 in 2023 and further to 1.18 in 2024, consistent with the debt reduction and equity recovery observed.

Adjusted Total Debt

Adjusted total debt followed a similar trend to reported total debt but at uniformly higher levels, starting at 182,984 million in 2020, rising to 202,321 million in 2021, then falling sharply to 158,096 million in 2022. It remained relatively stable around 158,423 million in 2023 before decreasing again to 144,456 million in 2024. These adjusted figures likely incorporate off-balance-sheet or other debt-like obligations, suggesting that the company's overall leverage exposure peaked in 2021 and has been decreasing since.

Adjusted Total Stockholders’ Equity

Adjusted equity also showed an increase from 240,735 million in 2020 to 249,622 million in 2021, followed by a marked fall to 163,991 million in 2022. It then partially rebounded to 178,497 million in 2023 and slightly increased to 179,459 million in 2024. This mirrors the pattern seen in reported equity, emphasizing that equity valuation adjustments or extraordinary items significantly impacted the 2022 period.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio remained below 1.0 for all years and increased from 0.76 in 2020 to 0.96 in 2022 before declining to 0.89 in 2023 and further to 0.80 in 2024. This indicates lower effective leverage after accounting for adjustments compared to the reported ratio, with a peak in leverage in 2022 followed by deleveraging trends.

In summary, the data exhibits a clear deleveraging trend following peaks in 2021 and 2022 across both reported and adjusted measures, combined with a significant but partially reversed decline in equity in 2022. The leverage ratios correspondingly peaked in 2022, then declined through 2024, reflecting an improving financial structure with reduced risk from debt financing over the most recent periods.

Total debt

The total debt of the company demonstrated variability over the analyzed period. Starting at $157.2 billion at the end of 2020, it increased to $177.4 billion in 2021. Subsequently, there was a significant reduction in 2022 to $135.9 billion, followed by a slight increase in 2023 to $137.3 billion, and a further decrease in 2024 to $123.5 billion. This pattern suggests an overall deleveraging trend after peaking in 2021.

Total capital

Total capital experienced a decrease after initially rising. It began at $318.9 billion in 2020 and increased to $343.7 billion in 2021. However, in the following years, total capital declined sharply to $233.4 billion in 2022, then rose moderately to $240.6 billion in 2023, and slightly decreased again to $227.9 billion in 2024. This indicates a significant restructuring or changes in the company's capital base after 2021.

Reported debt to capital ratio

The reported debt to capital ratio increased from 0.49 in 2020 to a peak of 0.58 in 2022, reflecting higher leverage relative to capital during that year. After 2022, the ratio showed a declining trend, decreasing to 0.57 in 2023 and further to 0.54 in 2024, implying some reduction in financial risk or better capital management after reaching the peak leverage.

Adjusted total debt

Adjusted total debt followed a similar pattern to the reported total debt but at consistently higher levels. It rose from $183.0 billion in 2020 to $202.3 billion in 2021, then dropped to $158.1 billion in 2022, maintained near that level at $158.4 billion in 2023, and declined further to $144.5 billion in 2024. This adjustment suggests that additional liabilities or off-balance-sheet items were taken into account, highlighting a cautious approach to assessing debt burden trends.

Adjusted total capital

Adjusted total capital was also consistently higher than reported total capital, starting at $423.7 billion in 2020 and rising to $451.9 billion in 2021. It then fell sharply to $322.1 billion in 2022, increased slightly to $336.9 billion in 2023, and slightly declined to $323.9 billion in 2024. This mirrors the reported total capital trend but with larger magnitudes, indicating significant capital adjustments that impact the overall assessment of financial structure.

Adjusted debt to capital ratio

The adjusted debt to capital ratio exhibited an increasing trend from 0.43 in 2020 to 0.49 in 2022, denoting a rise in leverage when considering adjusted figures. After 2022, the ratio decreased to 0.47 in 2023 and further to 0.45 in 2024, suggesting an improvement in leverage and possibly indicating efforts to strengthen the balance sheet by lowering debt or increasing capital base relative to adjusted metrics.

Total Assets

The total assets demonstrate an initial increase from 525,761 million US dollars in 2020 to 551,622 million US dollars in 2021. However, a significant decline occurs in 2022, dropping to 402,853 million US dollars, followed by modest fluctuations thereafter, stabilizing near 394,795 million US dollars by 2024.

Stockholders’ Equity Attributable to AT&T

Stockholders’ equity sees a gradual increase from 161,673 million US dollars in 2020 to 166,332 million US dollars in 2021. A sharp reduction is observed in 2022, decreasing to 97,500 million US dollars. Subsequently, a minor recovery is noted, reaching 104,372 million US dollars by 2024, yet it remains considerably lower than the levels prior to 2022.

Reported Financial Leverage

The reported financial leverage ratio rises slightly from 3.25 in 2020 to 3.32 in 2021, peaks at 4.13 in 2022 indicating increased leverage, and then shows a gradual decline to 3.78 by 2024, suggesting a reduction in leverage risk post-2022 peak.

Adjusted Total Assets

Adjusted total assets follow a trajectory similar to total assets, showing growth from 526,784 million US dollars in 2020 to 552,163 million US dollars in 2021, followed by a steep decrease in 2022 to 403,355 million US dollars. A stabilization trend is evident afterward, with a slight decrease to 395,090 million US dollars by 2024.

Adjusted Total Stockholders’ Equity

The adjusted equity indicates a steady increase from 240,735 million US dollars in 2020 to 249,622 million US dollars in 2021, then a marked decline to 163,991 million US dollars in 2022. Unlike the unadjusted equity, the recovery is more pronounced, climbing to 179,459 million US dollars in 2024 but still below pre-2022 levels.

Adjusted Financial Leverage

Adjusted financial leverage remains relatively stable between 2.19 and 2.21 from 2020 to 2021, then increases to 2.46 in 2022, before declining gradually to 2.20 in 2024. This pattern indicates a temporary increase in leverage pressure during 2022 with subsequent improvement.

Net Income (Loss) Attributable to AT&T

The net income demonstrates significant volatility over the analyzed periods. Starting with a substantial loss of $5,176 million in 2020, it sharply increased to a profit of $20,081 million in 2021. This was followed by a downturn to a loss of $8,524 million in 2022. The results rebounded again to a profit of $14,400 million in 2023 but slightly decreased to $10,948 million in 2024. This fluctuation indicates considerable instability in net earnings.

Operating Revenues

Operating revenues display a consistent downward trend from $171,760 million in 2020 to $120,741 million in 2022, marking a significant drop. From 2022 onwards, revenues stabilized around $122,400 million in 2023 and slightly decreased to $122,336 million in 2024, indicating a period of relative revenue plateau after the initial decline.

Reported Net Profit Margin

The reported net profit margin follows the pattern of net income, showing marked fluctuations. It was negative at -3.01% in 2020, increased to a strong positive margin of 11.89% in 2021, fell again to -7.06% in 2022, then rose to 11.76% in 2023 before declining to 8.95% in 2024. This pattern underscores the inconsistency in profitability relative to revenues during the period.

Adjusted Net Income (Loss)

Adjusted net income also reflects significant variability, closely mirroring the trends of reported net income but with less extreme swings. Initially, there was a loss of $3,848 million in 2020, followed by a peak profit of $25,728 million in 2021. A drop to a loss of $4,633 million occurred in 2022, but profits returned to $16,524 million in 2023 and slightly decreased to $11,373 million in 2024. This suggests that adjustments moderate some of the volatility observed in the reported figures, although overall variability remains notable.

Adjusted Net Profit Margin

The adjusted net profit margin also exhibits a fluctuating trend consistent with adjusted net income. It was negative at -2.24% in 2020, improving sharply to 15.24% in 2021. The margin then declined to -3.84% in 2022, increased again to 13.5% in 2023, before settling at 9.3% in 2024. These variations further highlight the unstable profitability performance when adjustments are taken into account.

Summary of Financial Trends

Overall, the data reveals a period marked by significant financial instability. Both net and adjusted income figures, along with corresponding profit margins, show alternating losses and gains, indicating fluctuating operational efficiency or external factors affecting profitability. Operating revenues declined sharply between 2020 and 2022 before stabilizing, suggesting challenges in maintaining top-line growth or shifts in business operations. Despite revenue declines, profitability improved markedly in 2021 and 2023, which may reflect cost management efforts or non-operating factors influencing earnings. However, the recurring decreases in profits and margins in 2022 and again in 2024 highlight persistent volatility and potential risks regarding sustainable profitability.

The financial data displays notable volatility in profitability metrics over the analyzed periods. The net income attributable to the company fluctuates significantly, with losses reported in 2020 and 2022, and profits in 2021, 2023, and 2024. The highest net income was recorded in 2021 at 20,081 million US dollars, followed by a loss of 8,524 million in 2022, and a partial recovery thereafter, though 2024's net income of 10,948 million remains below the peak of 2021.

Stockholders’ equity attributable to the company shows a declining pattern from 2021 onwards, dropping from 166,332 million in 2021 to 97,500 million in 2022, before stabilizing in the subsequent years around 103,000 to 104,000 million by 2024. This decline could be indicative of capital erosion possibly related to the losses and other equity adjustments during those years.

The reported return on equity (ROE) mirrors the net income trends with negative values in 2020 and 2022, -3.2% and -8.74% respectively, and positive returns in the other years. The ROE peaked at 13.94% in 2023, slightly declining to 10.49% in 2024, suggesting a recovery in profitability and efficient equity use post the 2022 downturn.

When considering adjusted figures, the adjusted net income follows a similar pattern to the reported net income, though the losses and gains are somewhat moderated. The adjusted net income was negative in 2020 and 2022, -3,848 million and -4,633 million respectively, with positive figures in other years. Positive adjusted net income peaked higher in 2021 at 25,728 million and declined thereafter.

Adjusted total stockholders’ equity displays a downward trend from 249,622 million in 2021 to 163,991 million in 2022, then exhibits moderate recovery through 2023 and 2024, reaching 179,459 million. This pattern aligns with the reported equity figures but at a higher level, suggesting adjustments for certain items that affect the book value.

The adjusted ROE is consistently positive except for the losses in 2020 and 2022. It peaks at 10.31% in 2021, decreases to 9.26% in 2023, and further to 6.34% in 2024, indicating a decline in adjusted profitability relative to equity, despite the recovery from prior losses.

Summary of Key Trends

1. Profitability exhibits significant fluctuation with losses in 2020 and 2022, and recoveries in the intervening and subsequent years.

2. Both reported and adjusted stockholders’ equity decline sharply in 2022, with partial recovery afterwards.

3. Reported ROE and adjusted ROE reflect the volatility in earnings and equity, with highest returns in 2023 and 2021 respectively.

4. Adjusted figures tend to smooth volatility but indicate a similar underlying trend in financial performance versus reported numbers.

5. The overall picture is of a company experiencing financial challenges in 2020 and 2022, followed by periods of earnings recovery and stabilization in equity levels.

Net Income (Loss) Attributable to AT&T

The net income shows notable volatility over the analyzed periods. It shifted from a significant loss of -5,176 million USD at the end of 2020 to a substantial profit of 20,081 million USD in 2021. Subsequently, it reverted to a loss of -8,524 million USD in 2022, before recovering to profits of 14,400 million USD in 2023 and declining slightly to 10,948 million USD in 2024. This pattern indicates high earnings instability with alternating profitable and loss-making years.

Total Assets

Total assets exhibited a declining trend overall. Beginning at 525,761 million USD in 2020, assets peaked slightly at 551,622 million USD in 2021, then declined sharply to 402,853 million USD in 2022. From 2022 onwards, total assets remained relatively stable though decreasing slightly to 407,060 million USD in 2023 and further to 394,795 million USD in 2024. This suggests a significant asset reduction primarily occurring between 2021 and 2022.

Reported Return on Assets (ROA)

The reported ROA reflects the volatility observed in net income. It decreased from -0.98% in 2020 to a positive peak of 3.64% in 2021. In 2022, it dropped again to -2.12%, then improved to 3.54% in 2023 and slightly declined to 2.77% in 2024. These fluctuations correspond to the swings in profitability and changes in asset base.

Adjusted Net Income (Loss)

The adjusted net income follows a pattern similar to net income but reflects less severe losses and higher gains. Starting with a loss of -3,848 million USD in 2020, it rose sharply to 25,728 million USD in 2021. A loss of -4,633 million USD was recorded in 2022, followed by recoveries to 16,524 million USD in 2023 and 11,373 million USD in 2024. This indicates adjustments may have moderated the impact of certain one-time or non-recurring items.

Adjusted Total Assets

The trend for adjusted total assets closely parallels that of total assets, moving from 526,784 million USD in 2020 to 552,163 million USD in 2021, then a substantial decrease to 403,355 million USD in 2022. It remained fairly steady with minor declines through 2023 (407,476 million USD) and 2024 (395,090 million USD), reinforcing the overall reduction in asset levels.

Adjusted Return on Assets (ROA)

Adjusted ROA values exhibit the same volatility but with somewhat moderated fluctuations compared to the reported ROA. It moved from -0.73% in 2020 to a high of 4.66% in 2021, dropped to -1.15% in 2022, then improved to 4.06% in 2023 and declined to 2.88% in 2024. The adjusted ROA trend reflects the adjustments applied to income and assets, indicating profitability volatility but with less negative impact in downturn periods.