AT&T Inc. (NYSE:T)

Debt to Equity Ratios

The debt to equity ratio exhibited a general upward trend from 0.92 at the end of March 2020, peaking at 1.41 in September 2023. After this peak, the ratio showed a slight decline and relatively stabilized around 1.22-1.26 by mid-2025. Including operating lease liabilities, the ratio was consistently higher, following a similar upward pattern, rising from 1.05 in March 2020 to a maximum of approximately 1.59 in late 2022 and early 2023, then tapering slightly to around 1.38-1.43 by mid-2025.

Debt to Capital Ratios

Debt to capital ratios also demonstrated a steady increase over the covered period. Starting at 0.48 in March 2020, it reached around 0.58 during 2022 and 2023 before moderately declining again to approximately 0.55-0.56 near mid-2025. When including operating lease liabilities, the debt to capital ratio was higher, moving from 0.51 to around 0.61 at its peak, then settling around 0.58-0.59 in later periods.

Debt to Assets Ratios

The debt to assets ratio showed a gradual increase from around 0.30 in early 2020 to about 0.34-0.35 during the 2022-2023 timeframe, followed by relatively stable values near 0.31-0.33 towards mid-2025. Inclusion of operating lease liabilities increased the ratio by roughly 0.04 points, with a peak near 0.40 in 2022 and maintaining levels between 0.36 and 0.38 subsequently.

Financial Leverage

Financial leverage increased steadily from 3.07 in March 2020 to a peak of 4.13 in late 2022, indicating an increasing reliance on debt financing relative to equity. Post-peak, the leverage ratio experienced a modest decrease but remained elevated in the range of approximately 3.78 to 3.85 through mid-2025.

Interest Coverage

Interest coverage displayed significant variability. Early in the series, missing data constrain full analysis, but available values show ratios improving sharply from very low coverage under 1.0 in 2020 to highs above 5.0 in 2021 and early 2022, suggesting periods of strong earnings relative to interest expenses. This was followed by a sharp deterioration in late 2022 and early 2023, with ratios dropping below 0.5 and even near zero, indicating challenges in meeting interest obligations during that time. Subsequently, coverage improved again steadily to around 3.5-3.8 by mid-2025, reflecting a recovery in earnings capacity relative to interest expenses.

Total Debt

The total debt exhibited significant fluctuations over the observed quarters. Initially, it showed a gradual increase from early 2020, peaking at approximately 207.6 billion US dollars in the first quarter of 2022. Following this peak, there was a notable reduction, with debt declining to roughly 123.5 billion US dollars by the first quarter of 2025. This suggests active debt management or principal repayments during the later periods.

Stockholders’ Equity Attributable to AT&T

Stockholders’ equity remained relatively stable with modest variability. It started at about 177.8 billion US dollars in the first quarter of 2020, decreased around mid-2022 to a low near 97.5 billion, then rebounded to approximately 105.3 billion US dollars by the first quarter of 2025. Despite some volatility, the equity shows a general trend of recovery after the mid-period trough.

Debt to Equity Ratio

The debt to equity ratio started below 1.0 in early 2020, indicating that total debt was less than equity. It increased to over 1.3 by the end of 2022, reflecting a rise in leverage, which corresponds with the peak in total debt and the drop in equity during the same period. Subsequently, the ratio decreased slightly to a range around 1.18 to 1.26 in 2025, indicating some deleveraging but still maintaining a higher leverage level compared to 2020.

Overall Insights

The data indicates that the company experienced a period of increasing indebtedness and reduced equity through 2021 and 2022, resulting in increased leverage ratios. Afterward, there was a concerted effort to reduce total debt and restore equity levels, leading to a moderate decrease in leverage by early 2025. This pattern may reflect strategic financial adjustments in response to market conditions or operational requirements during the observed timeframe.

The analysis of the quarterly financial data reveals several notable trends and fluctuations in the company's capital structure and leverage over the observed time periods.

Total Debt (including operating lease liability)

The total debt exhibits variability over the quarters, starting at approximately $185.9 billion in the first quarter of 2020 and generally increasing up to a peak exceeding $228 billion by early 2022. Subsequently, a marked reduction occurs, with the debt decreasing steadily to about $140.9 billion in the first quarter of 2025. The fluctuations suggest active debt management, possibly reflecting refinancing, repayment, or acquisition financing activities.

Stockholders’ Equity Attributable to AT&T

Stockholders' equity begins near $177.8 billion in the first quarter of 2020 and shows a gradual decline through 2020, reaching approximately $161.7 billion by year-end. In 2021 and early 2022, there is a pronounced decrease, with equity dropping sharply to around $97.5 billion before recovering somewhat to stabilize near $103 billion to $105 billion through 2024 and early 2025. This pattern may indicate significant equity write-downs, asset impairments, or other comprehensive income variations during this period.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio fluctuates in line with the movements in debt and equity. Starting near 1.05 in early 2020, it rises steadily, peaking around 1.59 by late 2022 and early 2023. This peak corresponds to the periods of highest leverage when equity was lower and debt relatively high. Following this peak, the ratio declines gradually to about 1.35 by the first quarter of 2025, indicating a modest deleveraging trend, likely reflecting the reduction in total debt and stabilization of equity levels.

Overall, the data highlights a period characterized by elevated leverage, reduced equity base, and subsequent efforts to improve the financial structure through debt reduction and stabilization of equity. These trends suggest strategic responses to financial or operational challenges, possibly including capital restructuring, asset revaluation, or shifts in financing strategy to enhance balance sheet strength over time.

Total Debt

The total debt experienced a fluctuation over the observed periods. Initially, it was around 164 billion USD at the beginning of 2020, with a slight increase and then a moderate decline towards the end of 2020. In 2021, the debt rose significantly, peaking above 207 billion USD in the first quarter of 2022. From that point, a notable reduction in debt followed, decreasing steadily through 2023 and into early 2024. Towards the end of 2024 and into mid-2025, total debt showed a mild uptick again, ending higher than the early 2024 levels but still below the peak observed in early 2022.

Total Capital

Total capital mirrored some of the debt trends but with its own distinct patterns. It began slightly above 342 billion USD in early 2020, fluctuating with minor variations until late 2021. There was a sharp decline at the beginning of 2022, with total capital dropping to approximately 233 billion USD by the end of that year. Subsequently, total capital showed a recovery with gradual increases during 2023. However, throughout 2024 and into mid-2025, total capital trended downward again, ending near the low 230 billions.

Debt to Capital Ratio

The debt-to-capital ratio followed a general upward trend from 0.48 at the start of 2020, escalating to around 0.58 in the early 2022 and 2023 periods, indicating an increasing proportion of debt relative to total capital during this time. After peaking, the ratio decreased slightly but remained relatively elevated, fluctuating between 0.54 and 0.58 in subsequent quarters. This suggests a persistent reliance on debt financing, with the company's capital structure being more leveraged compared to earlier periods.

Overall Analysis

Throughout the period under review, there are clear signs of volatility in both debt levels and total capital. The sharp increase in total debt coupled with a decline in total capital around early 2022 led to a peak in leverage ratios, pointing to potential shifts in the company’s financing or strategic approach to capital structure. Although there was some debt reduction after this peak, the debt proportion relative to total capital remained comparatively high. The moderately declining total capital toward the later periods may reflect asset base changes or other capital adjustments. The data indicates a cautious environment with ongoing adjustments in debt and capital management.

Total Debt (including operating lease liability)

The total debt showed fluctuations throughout the period analyzed. Initially, there was a modest decline from approximately $186 billion at the end of Q1 2020 to about $179 billion by Q4 2020. Subsequently, debt levels increased sharply to nearly $228 billion by Q1 2022, representing a significant peak. After this peak, a marked decline occurred over the next several quarters, reaching around $140 billion by Q1 2025. Following this trough, there was a slight upward movement, ending at about $150 billion in Q2 2025. Overall, the trend indicates a period of rising debt culminating in early 2022, followed by a considerable deleveraging phase.

Total Capital (including operating lease liability)

Total capital encompassed a similar pattern to debt but with less volatility. Starting at about $364 billion in Q1 2020, total capital experienced a moderate decline to approximately $341 billion by Q4 2020. Subsequently, it increased to just under $398 billion by Q1 2022. However, a substantial decrease followed, bottoming near $245 billion by Q2 2025. The decline after the early 2022 peak was more pronounced than the rise, showing a contraction in capital resources available. Minor recovery signs were observed towards the end of the period, with capital increasing slightly to approximately $255 billion by Q2 2025.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio exhibited a gradual upward trajectory with some fluctuations. Starting near 0.51 at Q1 2020, the ratio increased steadily to a peak of about 0.61 during several quarters between late 2022 and mid-2023. Post-peak, it showed a slight decline, stabilizing around 0.57 to 0.59 from early 2024 through mid-2025. The sustained higher ratio compared to the initial period suggests an increased leverage position that persisted despite some reduction. This implies that debt formed a larger proportion of capital over time, particularly after the early 2022 peak.

Summary of Trends

The data reveals a pronounced increase in debt and capital resources up to Q1 2022, followed by a significant reduction, notably in debt levels. This deleveraging phase led to lower total capital as well. Despite these shifts, the company maintained relatively high leverage ratios compared to the initial period, indicating a structurally higher reliance on debt in its capital structure over the analyzed timeframe. The recent quarters show some stabilization and minor recovery in both total capital and total debt, suggesting a period of consolidation after substantial restructuring of financial obligations.

Total Debt

The total debt exhibited fluctuations over the analyzed periods. Initially, debt increased moderately from 164,269 million USD in March 2020 to a peak of 180,199 million USD by March 2021, indicating a rising leverage position. Subsequently, there was a notable decrease, with total debt dropping to around 133,480 million USD in September 2022. Following this dip, debt levels exhibited a mild upward trend towards the end of the period but remained generally below the earlier peak, settling near 132,311 million USD by June 2025. This pattern suggests an overall reduction in leverage after the first year, with some stabilization afterwards.

Total Assets

Total assets showed a declining trend from 545,354 million USD in March 2020 to approximately 400,873 million USD in December 2022, indicating a substantial reduction in asset base during this timeframe. After this trough, assets stabilized and experienced slight growth, moving from around 400,873 million USD to 405,491 million USD by June 2025. The initial contraction followed by stabilization may reflect asset divestitures or impairments followed by a period of relatively steady asset management.

Debt to Assets Ratio

The ratio of total debt to total assets demonstrated a degree of volatility within a range of approximately 0.30 to 0.36. The ratio increased from 0.30 in early 2020 to a peak of 0.36 in March 2022, aligning with debt increases and asset decreases during this period. Post this peak, the ratio declined slightly and stabilized near 0.33 towards the end of the dataset. The changes in this ratio suggest varying leverage intensity, with a notable peak indicating heightened financial risk around early 2022, followed by modest deleveraging actions or asset base adjustments stabilizing the company's financial structure.

Overall Observations

The data indicate a period of increasing financial leverage and shrinking asset base during the initial years observed, likely reflective of strategic or operational shifts. The subsequent recovery and stabilization in both debt and asset levels suggest efforts to manage balance sheet strength and maintain financial stability. The debt to asset ratio fluctuations underscore adjustments in capital structure, reflecting a cautious approach post the peak leverage period. These trends collectively reveal active management of financial position in response to operational or market conditions over the analyzed timeframe.

Total Debt (including operating lease liability)

The total debt level showed fluctuations over the observed periods. Initially, total debt increased from 185,853 million US dollars at the end of Q1 2020 to a peak of 201,965 million by Q1 2021. This was followed by relative stability through 2021, with minor declines towards the end of that year. In 2022, there was a notable decline, with debt falling to approximately 152,221 million by Q3 2022. The level fluctuated modestly in 2023 and early 2024, ranging mostly between 150,000 and 161,591 million US dollars, before gradually decreasing again in late 2024 and early 2025. Overall, debt decreased from the higher levels seen in early 2021 towards the later periods, indicating some deleveraging or debt repayment activity near the end of the timeline.

Total Assets

Total assets initially hovered around the mid-500,000 million US dollar range during 2020 to early 2022. However, starting from Q2 2022, there was a marked drop in total assets to levels near 400,000 million. This significant reduction persisted throughout 2022 and into 2023, with assets remaining relatively stable around the 400,000 million mark. Minor fluctuations occurred within 2023 and into 2025, with no clear upward or downward trend after this sharp decline. The data suggests a restructuring or asset disposition during the 2022 period resulting in a lower asset base maintained thereafter.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio initially ranged between 0.34 and 0.35 from early 2020 to late 2020, indicating moderate leverage. The ratio increased to approximately 0.37 during 2021, coinciding with the rise in total debt and a relatively stable or slightly increasing asset base. In early 2022, the ratio rose further to 0.40, reflecting the combination of peak debt levels and shrinking asset base. From mid-2022 onward, despite debt reducing significantly, the ratio remained elevated around 0.36 to 0.39 due to the lower asset levels. Towards the end of the period, the ratio stabilized around 0.36 to 0.37, suggesting a consistent leverage profile relative to the remodeled asset base.

Overall Insights

The period under review reveals a company that experienced incremental increases in debt and assets up to early 2021, followed by a notable contraction in asset size starting mid-2022. Despite the debt reduction in this latter period, the debt to assets ratio remained comparatively high due to the asset shrinkage. This could imply strategic asset sales, reclassification, or impairment events influencing total assets and maintaining a moderately leveraged position. The leverage ratio stabilization in recent periods suggests the company may have reached a new capital structure equilibrium, balancing debt against a reduced but steady asset base.

Total Assets

The total assets experienced moderate fluctuations over the observed periods. Initially, from March 2020 to December 2021, the asset base remained relatively stable, with a slight upward trend peaking at 577,195 million US dollars by March 2022. Following this peak, a noticeable decline occurred through December 2022, reaching approximately 400,873 million US dollars. From early 2023 through mid-2025, total assets generally stabilized around the 398,000 to 407,000 million US dollars range, indicating a period of consolidation or reduced asset growth compared to earlier years.

Stockholders’ Equity Attributable to AT&T

Stockholders' equity showed initial stability with minor declines from 177,779 million US dollars in March 2020 to 161,673 million US dollars by December 2020. The equity base then gradually increased until March 2022, reaching 169,036 million US dollars, before a sharp decrease to 97,500 million US dollars in September 2022. Subsequent quarters through mid-2025 exhibit a modest recovery and stabilization of equity around the 100,000 to 105,000 million US dollars range. The sharp decline in late 2022 suggests a significant equity event or revaluation during that period, with recovery efforts appearing to stabilize equity levels thereafter.

Financial Leverage Ratio

The financial leverage ratio generally increased from 3.07 in March 2020 to a high of 4.13 by December 2022, reflecting growing financial obligations relative to equity. After peaking, the ratio slightly declined and remained relatively constant, fluctuating between 3.78 and 4.03 from early 2023 onward. This trend indicates an initial acceleration in leverage, potentially due to decreases in equity or increases in debt, followed by efforts to moderate or control leverage levels going forward.

Summary of Observed Trends

The data reflects a period of relative stability in assets and equity through early 2021, followed by significant volatility starting in 2022, especially with the marked drop in equity and a peak in financial leverage. This indicates possible restructuring, asset impairments, or major financial transactions affecting the balance sheet. The subsequent stabilization in the latter periods suggests that corrective measures or strategic adjustments were implemented to improve financial health and leverage management. Overall, the company exhibited increased financial risk during the mid-term period but demonstrated signs of recovery and balance sheet stabilization in the most recent quarters.

Earnings before interest and tax (EBIT)

The EBIT displays notable volatility across the periods observed. Initially, it peaks at 8,283 million USD at the end of Q1 2020, followed by a sharp decline reaching its lowest at -13,659 million USD in Q4 2020. Post this trough, it rebounds significantly in Q1 2021 to 11,934 million USD, but with fluctuations thereafter, including another deep decline to -21,637 million USD in Q4 2022. From Q1 2023 onwards, EBIT resumes positive values, although generally lower and fluctuating, ranging between 3,105 million USD and 7,753 million USD towards the end of the series in Q4 2025. This pattern suggests episodic adverse conditions followed by partial recoveries but no consistent growth trend.

Interest expense

Interest expense remains relatively stable throughout the periods, with values consistently close to a narrow range between approximately 1,420 million USD and 2,041 million USD. There is a minor downward trend in the earlier quarters, declining from 2,018 million USD in Q1 2020 to the low 1,420s by Q3 2022, followed by a modest increase and stabilization around mid-1,600 million USD towards the later periods. This stability indicates controlled financing costs despite fluctuations in EBIT.

Interest coverage ratio

The interest coverage ratio displays significant fluctuation, reflecting the volatility observed in EBIT. It is missing for most initial quarters but from Q4 2020 onwards, it starts low at 0.64 and improves markedly to peak values around 5.27 by Q4 2021, indicating strong ability to meet interest obligations during this period. However, it again dips drastically to 0.04 in Q4 2023, correlating with the low EBIT values, showing difficulty in covering interest expenses at that time. Subsequently, the ratio recovers steadily to values between 3.1 and 3.83 toward Q4 2025, suggesting a gradually improving, albeit still moderate, capacity to cover interest costs.

Overall financial trend analysis

The data reveals a financial situation characterized by high cyclicality and episodic severe downturns in operating profitability, as reflected by EBIT swings into significant negative territory twice within the timeframe. Despite this volatility, interest expenses remained controlled and stable, potentially indicating disciplined debt management or refinancing activities. The interest coverage ratio correlates strongly with EBIT trends, confirming periods of financial stress contrasted with intervals of stronger operating performance and adequate interest coverage. The more recent data points suggest some stabilization and improved operational earnings, though not to the previous highs, implying ongoing challenges but with signs of recovery in financial health.