Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
AT&T Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the quarterly liquidity ratios over the presented periods reveals several notable trends and fluctuations.
- Current Ratio
- The current ratio, indicating the company's ability to cover short-term liabilities with short-term assets, generally fluctuates within a range from approximately 0.51 to 0.93. From early 2020 through mid-2021, it starts around 0.76, showing a mild upward trend and peaks near 0.93 in the first quarter of 2022. Subsequently, the ratio declines to its lowest point of 0.51 in the first quarter of 2023, followed by a gradual recovery, increasing to 0.81 by the second quarter of 2025. This pattern suggests intermittent changes in working capital management or asset-liability structure, with occasional tightening and easing of liquidity positions.
- Quick Ratio
- The quick ratio, a more conservative indicator of liquidity that excludes inventory, demonstrates a generally low and somewhat unstable trend. It ranges from a high of 0.68 in the first quarter of 2022 to lows near 0.22 in the first quarter of 2023. After this low point, there is partial recovery with values incrementally rising to 0.40 by mid-2025. The sharp drop around early 2023 indicates a decrease in liquid assets relative to current liabilities, suggesting increased pressures on readily available resources during that period and a gradual improvement thereafter.
- Cash Ratio
- The cash ratio, the strictest liquidity measure focusing on cash and cash equivalents, displays significant volatility. Beginning at 0.14 in the first quarter of 2020, it experiences peaks and troughs, notably a peak of 0.47 in the first quarter of 2022 followed by a steep decline to 0.05–0.07 in late 2022 and early 2023. Post this low, there is a gradual increase, reaching 0.22 by mid-2025. This variation suggests fluctuating cash reserves or cash management strategies, with periods of considerable cash accumulation followed by reductions, potentially reflecting operational cash flow variability or strategic liquidity management.
Overall, the liquidity ratios point to a company experiencing cyclical liquidity pressures, with notable dips in conservative liquidity measures in early 2023 followed by a moderate rebound. The current ratio remains below 1 for most periods, indicating relatively tight liquidity. The greater volatility in quick and cash ratios emphasizes challenges in maintaining readily available liquid assets, while the gradual post-2023 recoveries indicate attempts to strengthen liquidity positions over time.
Current Ratio
AT&T Inc., current ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 39,306) | 33,780) | 31,168) | 29,799) | 29,868) | 30,445) | 36,458) | 35,620) | 36,672) | 29,903) | 33,108) | 32,295) | 34,485) | 76,856) | 59,997) | 57,230) | 62,869) | 62,754) | 52,008) | 49,971) | 56,555) | 52,704) | |||||||
| Current liabilities | 48,565) | 47,999) | 46,872) | 40,658) | 42,429) | 44,834) | 51,127) | 51,684) | 54,159) | 58,150) | 56,173) | 52,257) | 49,189) | 82,494) | 85,588) | 81,601) | 82,126) | 76,608) | 63,438) | 59,565) | 69,469) | 69,704) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 0.81 | 0.70 | 0.66 | 0.73 | 0.70 | 0.68 | 0.71 | 0.69 | 0.68 | 0.51 | 0.59 | 0.62 | 0.70 | 0.93 | 0.70 | 0.70 | 0.77 | 0.82 | 0.82 | 0.84 | 0.81 | 0.76 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| T-Mobile US Inc. | 1.21 | 1.16 | 0.91 | 1.08 | 0.84 | 0.94 | 0.91 | 0.86 | 0.82 | 0.79 | 0.77 | 0.81 | 0.85 | 0.81 | 0.89 | 0.87 | 0.94 | 0.96 | 1.10 | 0.98 | 1.05 | 0.64 | |||||||
| Verizon Communications Inc. | 0.64 | 0.61 | 0.63 | 0.66 | 0.63 | 0.71 | 0.69 | 0.68 | 0.73 | 0.75 | 0.75 | 0.75 | 0.76 | 0.76 | 0.78 | 0.97 | 0.89 | 1.02 | 1.38 | 1.07 | 0.96 | 0.99 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 39,306 ÷ 48,565 = 0.81
2 Click competitor name to see calculations.
- Current Assets
- The current assets demonstrated a fluctuating pattern throughout the periods analyzed. Initially, there was a moderate increase from March 2020 (52,704 million USD) to June 2021 (62,869 million USD), followed by a general decline with occasional short-term increases. Notably, there was a sharp decrease from 76,856 million USD in March 2022 to 33,108 million USD in December 2022. After this decline, current assets showed a relatively stable trend with minor fluctuations, ending at 39,306 million USD in June 2025.
- Current Liabilities
- Current liabilities also exhibited considerable variability. From March 2020 (69,704 million USD) to December 2021 (85,588 million USD), liabilities increased steadily. However, a marked decrease happened from March 2022 (82,494 million USD) through December 2024, reaching a low point of 40,658 million USD in September 2024. After this decline, current liabilities experienced a slight rise, finishing at 48,565 million USD in June 2025.
- Current Ratio
- The current ratio indicated persistent pressure on liquidity over the timeline. Initially, it rose from 0.76 in March 2020 to a peak of 0.84 in September 2020 but tended to decrease afterward. The ratio fell below 1.0 for the entire period, reflecting that current liabilities consistently exceeded current assets. A sharp dip occurred from 0.93 in March 2022 to 0.59 in December 2022, mirroring the dramatic drop in current assets combined with still elevated liabilities. Following this period, the current ratio exhibited mild recovery and stabilization, reaching 0.81 by June 2025, yet it remained below a generally accepted safe threshold of 1.0.
- Overall Insights
- The data reveals a company experiencing significant fluctuations in short-term financial health and liquidity. The initial part of the period saw current assets and liabilities both increasing, but liabilities outpaced assets, causing the current ratio to remain below 1.0. The drastic decline in current assets during 2022, along with sustained liabilities, led to deteriorated liquidity ratios, pointing to potential cash flow or working capital challenges. Although the latter periods show some improvement and stabilization, the current ratio consistently indicates a need for ongoing attention to short-term financial obligations relative to assets.
Quick Ratio
AT&T Inc., quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 10,499) | 6,885) | 3,298) | 2,586) | 3,093) | 3,520) | 6,722) | 7,540) | 9,528) | 2,821) | 3,701) | 2,423) | 4,018) | 38,565) | 21,169) | 21,270) | 11,869) | 11,342) | 9,740) | 9,758) | 16,941) | 9,955) | |||||||
| Accounts receivable, net of related allowances for credit loss | 8,844) | 9,228) | 9,638) | 9,068) | 9,686) | 9,577) | 10,289) | 8,962) | 9,304) | 10,214) | 11,466) | 11,384) | 11,377) | 17,218) | 17,571) | 16,304) | 15,771) | 16,971) | 20,215) | 19,379) | 19,127) | 19,908) | |||||||
| Total quick assets | 19,343) | 16,113) | 12,936) | 11,654) | 12,779) | 13,097) | 17,011) | 16,502) | 18,832) | 13,035) | 15,167) | 13,807) | 15,395) | 55,783) | 38,740) | 37,574) | 27,640) | 28,313) | 29,955) | 29,137) | 36,068) | 29,863) | |||||||
| Current liabilities | 48,565) | 47,999) | 46,872) | 40,658) | 42,429) | 44,834) | 51,127) | 51,684) | 54,159) | 58,150) | 56,173) | 52,257) | 49,189) | 82,494) | 85,588) | 81,601) | 82,126) | 76,608) | 63,438) | 59,565) | 69,469) | 69,704) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 0.40 | 0.34 | 0.28 | 0.29 | 0.30 | 0.29 | 0.33 | 0.32 | 0.35 | 0.22 | 0.27 | 0.26 | 0.31 | 0.68 | 0.45 | 0.46 | 0.34 | 0.37 | 0.47 | 0.49 | 0.52 | 0.43 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| T-Mobile US Inc. | 0.86 | 0.88 | 0.70 | 0.84 | 0.64 | 0.73 | 0.68 | 0.64 | 0.65 | 0.58 | 0.57 | 0.62 | 0.62 | 0.58 | 0.66 | 0.65 | 0.75 | 0.72 | 0.84 | 0.70 | 0.76 | 0.36 | |||||||
| Verizon Communications Inc. | 0.49 | 0.46 | 0.47 | 0.50 | 0.46 | 0.52 | 0.51 | 0.50 | 0.54 | 0.53 | 0.54 | 0.48 | 0.52 | 0.54 | 0.57 | 0.78 | 0.65 | 0.84 | 1.16 | 0.87 | 0.79 | 0.75 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 19,343 ÷ 48,565 = 0.40
2 Click competitor name to see calculations.
The financial data reveals fluctuating trends in liquidity and short-term financial stability over the reported quarters.
- Total Quick Assets
- The total quick assets display notable volatility. Initially, they ranged around $29.8 billion to $38.7 billion through 2020 and 2021, peaking in the last quarter of 2021 at approximately $38.7 billion. Subsequently, a significant decline is observed in the first three quarters of 2022, dropping sharply to approximately $13.8 billion in September 2022. Following this low point, quick assets showed variability with minor recoveries and declines, fluctuating between roughly $13 billion and $18.8 billion from late 2022 through mid-2023. By the end of 2023, there was a slight upward trend that continued into the first half of 2025, reaching approximately $19.3 billion by June 2025.
- Current Liabilities
- Current liabilities remained relatively high and somewhat volatile. In 2020 and 2021, liabilities increased from about $69.7 billion to a peak near $85.6 billion in the last quarter of 2021. Starting in 2022, there was a marked decrease in current liabilities, reaching their lowest in the third quarter of 2024 at approximately $40.7 billion. After this period, liabilities demonstrated a moderate rising tendency, reaching nearly $48.6 billion by mid-2025.
- Quick Ratio
- The quick ratio, which measures the ability to meet short-term obligations with quick assets, exhibits considerable decline and instability. It began at 0.43 in early 2020, peaked at 0.52 in the second quarter of 2020, and generally trended downward through 2021, falling below 0.5. A sharp drop occurred in 2022, coinciding with the drop in quick assets and the still-high current liabilities, with ratios hitting lows around 0.22 to 0.27 in late 2022 and early 2023. Some improvement was observed mid-2023 through early 2024 where the quick ratio rose moderately to the mid-0.3 range. However, it remained below 0.5 throughout the entire period, indicating liquidity challenges relative to current liabilities.
Overall, the data suggests a period of tightening liquidity and shrinking quick assets in relation to consistently high current liabilities. This has resulted in a low and generally decreasing quick ratio, reflecting lower short-term financial flexibility. Despite some improvements in quick assets and a reduction in liabilities later in the series, the quick ratio does not return to earlier levels, implying continued pressure on covering short-term obligations with liquid assets.
Cash Ratio
AT&T Inc., cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 10,499) | 6,885) | 3,298) | 2,586) | 3,093) | 3,520) | 6,722) | 7,540) | 9,528) | 2,821) | 3,701) | 2,423) | 4,018) | 38,565) | 21,169) | 21,270) | 11,869) | 11,342) | 9,740) | 9,758) | 16,941) | 9,955) | |||||||
| Total cash assets | 10,499) | 6,885) | 3,298) | 2,586) | 3,093) | 3,520) | 6,722) | 7,540) | 9,528) | 2,821) | 3,701) | 2,423) | 4,018) | 38,565) | 21,169) | 21,270) | 11,869) | 11,342) | 9,740) | 9,758) | 16,941) | 9,955) | |||||||
| Current liabilities | 48,565) | 47,999) | 46,872) | 40,658) | 42,429) | 44,834) | 51,127) | 51,684) | 54,159) | 58,150) | 56,173) | 52,257) | 49,189) | 82,494) | 85,588) | 81,601) | 82,126) | 76,608) | 63,438) | 59,565) | 69,469) | 69,704) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.22 | 0.14 | 0.07 | 0.06 | 0.07 | 0.08 | 0.13 | 0.15 | 0.18 | 0.05 | 0.07 | 0.05 | 0.08 | 0.47 | 0.25 | 0.26 | 0.14 | 0.15 | 0.15 | 0.16 | 0.24 | 0.14 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| T-Mobile US Inc. | 0.46 | 0.51 | 0.27 | 0.47 | 0.28 | 0.33 | 0.25 | 0.23 | 0.27 | 0.19 | 0.18 | 0.26 | 0.15 | 0.15 | 0.28 | 0.21 | 0.36 | 0.34 | 0.48 | 0.33 | 0.48 | 0.08 | |||||||
| Verizon Communications Inc. | 0.06 | 0.04 | 0.06 | 0.08 | 0.04 | 0.04 | 0.04 | 0.08 | 0.09 | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 | 0.06 | 0.24 | 0.12 | 0.26 | 0.56 | 0.25 | 0.20 | 0.17 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 10,499 ÷ 48,565 = 0.22
2 Click competitor name to see calculations.
The analysis of the financial metrics reveals notable fluctuations and trends across the examined periods. Three key items are considered: total cash assets, current liabilities, and the cash ratio.
- Total Cash Assets
- The total cash assets exhibited considerable volatility over the periods. Starting at approximately $9.96 billion in March 2020, cash assets rose sharply to $16.94 billion by June 2020, before declining back to around $9.74 billion at the end of 2020. In 2021, a marked increase was observed during the third quarter, reaching $21.27 billion, which remained relatively stable toward year-end. Early 2022 saw a substantial increase to $38.6 billion in the first quarter, followed by a steep decline in subsequent quarters, hitting a low of approximately $2.4 billion by September 2022. The following two years show fluctuations within a lower range, as cash assets generally oscillated between $2.5 billion and $9.5 billion, without a sustained upward trend.
- Current Liabilities
- Current liabilities remained relatively high throughout the entire timeframe but displayed a downward trend from early 2022 onward. Beginning near $69.7 billion in the first quarter of 2020, liabilities fluctuated slightly but generally hovered around the $60 billion to $85.6 billion range until the end of 2021. A significant reduction became apparent from March 2022, with liabilities falling sharply to about $49.2 billion and continuing a gradual decline, reaching approximately $48.6 billion by mid-2025. Despite some increases during this period, the general trajectory was downward, indicating a reduction in short-term obligations relative to prior years.
- Cash Ratio
- The cash ratio, measuring the extent to which cash assets cover current liabilities, mirrored the volatility observed in cash assets. Initially low at 0.14 in early 2020, it peaked at 0.47 in the first quarter of 2022, corresponding with the surge in cash assets and reduction in liabilities. Subsequently, it experienced a steep decline and remained quite low—generally below 0.15 through most of 2022 and 2023—reflecting diminished liquidity. Slight improvements are noticeable during mid to late 2025, with the cash ratio increasing to 0.22 by June 2025. Overall, the liquidity position showed periods of temporary strengthening followed by sustained low levels, indicating a relatively tight cash coverage of obligations in recent years.
In summary, the financials depict significant short-term liquidity fluctuations, with a peak in cash reserves and liquidity ratios early in 2022, followed by declines and stabilization at lower levels. Concurrently, current liabilities exhibit a modest but steady downward trend starting from 2022, which may contribute to the gradual improvement in liquidity ratios toward mid-2025. These trends suggest periods of active cash management and changes in liability structure influencing the company's short-term financial position.