AT&T Inc. (NYSE:T)

Current Ratio Trends

The current ratio exhibited a fluctuating pattern over the examined periods, starting at 0.82 and declining to its lowest point of 0.51 by March 31, 2023. This represented a notable decrease in short-term liquidity. Subsequent quarters showed a recovery trend, with the ratio rising steadily to reach 1.01 by September 30, 2025. This indicates an improvement in the company's ability to meet its short-term obligations with current assets toward the end of the period.

Quick Ratio Trends

The quick ratio also showed volatility throughout the periods. Initially low at 0.37, it saw peaks and troughs, with an early peak of 0.68 in March 31, 2022, followed by a decline to 0.22 by March 31, 2023. From there, an upward trend was observed, culminating in a value of 0.54 by September 30, 2025. This suggests that the company's more liquid assets (excluding inventories) experienced enhancement in their coverage of current liabilities over time, although the short-term liquidity remained less robust in earlier periods.

Cash Ratio Trends

The cash ratio generally remained low, reflecting limited cash and cash equivalents relative to current liabilities. After an increase to 0.47 at the end of the first quarter of 2022, there was a significant decline to around 0.05-0.07 levels in subsequent quarters through early 2023. This was followed by a gradual recovery starting mid-2023, reaching 0.38 by September 30, 2025. The trend indicates periods of constrained immediate cash availability but an improving position over the longer term.

Overall Liquidity Assessment

Overall, the liquidity ratios suggest that the company experienced some pressure on short-term liquidity in the early and mid-portions of the examined timeframe, with all ratios hitting lows around early 2023. However, the later quarters depict a positive turnaround, with incremental improvements in all three ratios, particularly the current ratio surpassing the threshold of 1.0 by the end of the period. This signifies a strengthening of the company's capacity to cover short-term liabilities, which may reflect improved asset management or changes in liabilities structure.

Current Assets Trend

Over the presented periods, current assets exhibited volatility with an initial increase from approximately 62,754 million USD to a peak of 76,856 million USD by the first quarter of 2022. This was followed by a significant decline through mid-2023, reaching a low around 29,799 to 30,445 million USD. Subsequently, a gradual recovery is observed from late 2023 onward, culminating in a marked increase to 54,579 million USD by the third quarter of 2025.

Current Liabilities Trend

Current liabilities showed some fluctuations but generally trended downward from a high near 85,588 million USD in the last quarter of 2021 to a level between 40,658 million and 48,999 million USD throughout 2023 and early 2024. In the final periods, liabilities increased gradually, reaching approximately 53,876 million USD by the third quarter of 2025.

Current Ratio Analysis

The current ratio, reflecting liquidity, fluctuated within a relatively narrow range with notable low points below 0.6 found during late 2021 and early 2022 quarters. The ratio dipped to its minimum of 0.51 in the first quarter of 2023, indicating relatively weak short-term liquidity at that time. However, it showed improvement in subsequent quarters, rising steadily and reaching a ratio above 1.0 by the third quarter of 2025. This signals enhanced ability to cover current liabilities with current assets in the most recent period.

Overall Liquidity Insight

The data reveal a phase of liquidity stress as current assets decreased sharply relative to liabilities up to early 2023, reflected in current ratios below 1.0 and near or below 0.6 at certain points. Recovery phases after this include rising current assets and stable to slightly increasing liabilities, which together have improved the liquidity position, culminating in a current ratio suggesting satisfactory short-term financial coverage by mid-2025.

Total quick assets

The total quick assets exhibited notable variability across the periods. Initially, a general upward trend was observed from March 2021 to March 2022, with a peak of approximately $55.8 billion. Subsequent quarters experienced a sharp decline through the remainder of 2022, reaching values near $15 billion. In 2023, the total quick assets fluctuated moderately without a clear directional trend, remaining within a range roughly between $13 and $19 billion. However, starting from late 2024, a distinct upward trend is apparent, culminating in a substantial increase to nearly $29.2 billion by September 2025.

Current liabilities

Current liabilities started at about $76.6 billion in March 2021 and generally remained elevated throughout the periods. There was a slight increase during the first year, peaking close to $85.6 billion in December 2021. Subsequently, liabilities showed a pronounced reduction through 2022 and 2023, dropping to lows around $40.7 to $45.4 billion between early 2024 and late 2024. A modest upward movement in liabilities occurred again in 2025, with levels approaching about $53.9 billion by September 2025.

Quick ratio

The quick ratio illustrated significant fluctuations over the periods. Initially low, around 0.37 in early 2021, it peaked at 0.68 in March 2022. Following this peak, there was a marked decline through the rest of 2022 and into 2023, reaching lows near 0.22. Throughout 2023 and 2024, the ratio remained relatively stable but depressed, fluctuating mostly between 0.28 and 0.35. In 2025, the ratio demonstrated a strong improvement trend, rising steadily from about 0.34 in June 2025 to 0.54 by September 2025.

Overall analysis

The financial data indicates a period of volatility and adjustment with quick assets and quick ratio showing considerable fluctuation. The substantial increase in quick assets at the beginning of 2022, followed by a steep reduction, may point to timing differences or significant asset reallocation. Current liabilities have shown a moderate decline moving into 2023 and 2024, contributing to improved liquidity conditions in later periods. The quick ratio’s pattern reflects these changes, with a notable recovery in 2025 after a period of weakened liquidity, suggesting an improving short-term financial position by the latest quarter.

The analysis of the quarterly financial data reveals several notable trends in liquidity and current liabilities over the observed period.

Total Cash Assets

The total cash assets showed significant fluctuations across the quarters. Initially, there was a marked increase from approximately $11.3 billion in the first quarter of 2021 to over $38.5 billion by the first quarter of 2022, representing a substantial cash build-up. However, this peak was followed by a steep decline in subsequent quarters, with values dropping to levels below $4 billion for much of 2022 and early 2023. Post this period, the cash assets displayed a pattern of modest recovery, climbing back to approximately $20.3 billion by the third quarter of 2025.

Current Liabilities

The current liabilities exhibited a persistent and generally high level throughout the quarters. The values maintained a range typically between $40 billion and $86 billion, with the highest levels observed in 2021. From mid-2022 onward, there was a moderate decline in current liabilities, reaching lower levels around $40 billion to $48 billion in 2024 and 2025; however, a slight upward trend was noticeable again towards late 2025, suggesting some variability but overall stability at elevated liability levels.

Cash Ratio

The cash ratio, representing the company's ability to cover its current liabilities with cash and cash equivalents, reflected the volatility seen in cash assets relative to current liabilities. Initially low at approximately 0.15 in early 2021, the ratio increased significantly to a peak of 0.47 by the first quarter of 2022, coinciding with the peak in cash assets. This was followed by a sharp decrease to lows around 0.05 to 0.07 during 2022 and early 2023, consistent with the depleted cash reserves. A gradual improvement started in mid-2023, with the ratio increasing steadily to reach 0.38 by the third quarter of 2025. Despite this improvement, the cash ratio remains below 0.5, indicating that cash on hand covers less than half of the current liabilities.

In summary, the data depict a period of significant cash accumulation followed by a steep decline and partial recovery, amidst persistently high current liabilities that have somewhat stabilized with minor fluctuations. The cash ratio fluctuations imply varying liquidity capacity, with recent trends pointing towards a strengthening liquidity position, although coverage of current liabilities by cash remains limited.