Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
AT&T Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of long-term investment activity ratios reveals generally stable, though somewhat declining, performance over the five-year period. Several ratios indicate a consistent utilization of assets, while equity turnover shows a more fluctuating pattern. Overall, the company demonstrates a moderate capacity to generate revenue from its asset base.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased from 1.34 in 2021 to 0.95 in 2022, and remained relatively constant at 0.95 from 2022 through 2024, with a slight increase to 0.96 in 2025. This suggests an initial decline in revenue generated per dollar of net fixed assets, followed by stabilization. The decrease from 2021 to 2022 could indicate reduced operational efficiency or a shift in asset composition.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio experienced a decline from 1.13 in 2021 to 0.81 in 2022. It then exhibited stability between 0.81 and 0.82 from 2022 to 2024, concluding at 0.81 in 2025. The inclusion of operating lease obligations and right-of-use assets appears to lower the turnover rate compared to the standard calculation, and the trend mirrors the standard ratio, indicating a similar pattern of initial decline and subsequent stabilization.
- Total Asset Turnover
- The total asset turnover ratio remained consistently low, fluctuating between 0.30 and 0.31 throughout the period. This indicates that for every dollar of assets, the company generates approximately 30 to 31 cents in revenue. The stability suggests a consistent, though limited, efficiency in utilizing its overall asset base to generate sales.
- Equity Turnover
- The equity turnover ratio increased from 1.02 in 2021 to 1.24 in 2022, then decreased to 1.19 in 2023, 1.17 in 2024, and finally to 1.14 in 2025. This ratio demonstrates the most volatility of the group, suggesting a changing relationship between revenue and equity financing. The initial increase followed by a gradual decline could be attributed to shifts in financial leverage or equity structure.
In summary, the observed trends suggest a period of adjustment in asset utilization, particularly in 2022, followed by a period of relative stability. The equity turnover ratio presents a more dynamic picture, indicating potential changes in the company’s capital structure or financing strategies.
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Net Fixed Asset Turnover
AT&T Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 125,648) | 122,336) | 122,428) | 120,741) | 168,864) | |
| Property, plant and equipment, net | 131,559) | 128,871) | 128,489) | 127,445) | 125,904) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.96 | 0.95 | 0.95 | 0.95 | 1.34 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | 2.15 | 1.96 | 1.80 | 1.75 | 1.86 | |
| Verizon Communications Inc. | 1.26 | 1.24 | 1.24 | 1.27 | 1.34 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Telecommunication Services | 1.25 | 1.21 | 1.19 | 1.20 | 1.42 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | 1.50 | 1.65 | 1.68 | 1.73 | 1.90 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Operating revenues ÷ Property, plant and equipment, net
= 125,648 ÷ 131,559 = 0.96
2 Click competitor name to see calculations.
The net fixed asset turnover ratio experienced a notable shift over the five-year period. Initially, the ratio demonstrated a decline, followed by a period of relative stability, with a slight indication of improvement in the most recent year.
- Operating Revenues
- Operating revenues decreased significantly from 2021 to 2022, falling from US$168,864 million to US$120,741 million. Revenues then exhibited modest growth over the subsequent three years, reaching US$125,648 million in 2025. This suggests a period of revenue contraction followed by stabilization and a slow recovery.
- Property, Plant and Equipment, Net
- Property, plant, and equipment, net, consistently increased throughout the period, rising from US$125,904 million in 2021 to US$131,559 million in 2025. This indicates ongoing investment in fixed assets, despite fluctuations in revenue generation.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased from 1.34 in 2021 to 0.95 in 2022, reflecting the substantial decline in operating revenues coupled with a relatively stable asset base. The ratio remained at 0.95 for 2022, 2023, and 2024, indicating that the relationship between revenues and fixed assets remained consistent during those years. A slight increase to 0.96 was observed in 2025, coinciding with the modest revenue growth, suggesting a potential stabilization or nascent improvement in asset utilization.
The sustained level of investment in property, plant, and equipment, net, while revenues were comparatively lower, resulted in a reduced turnover ratio. The recent slight increase in the ratio suggests that the company may be beginning to generate more revenue from its fixed asset base, but further observation is needed to confirm a sustained trend.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
AT&T Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 125,648) | 122,336) | 122,428) | 120,741) | 168,864) | |
| Property, plant and equipment, net | 131,559) | 128,871) | 128,489) | 127,445) | 125,904) | |
| Operating lease right-of-use assets | 22,642) | 20,909) | 20,905) | 21,814) | 24,180) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 154,201) | 149,780) | 149,394) | 149,259) | 150,084) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.81 | 0.82 | 0.82 | 0.81 | 1.13 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| T-Mobile US Inc. | 1.32 | 1.21 | 1.11 | 1.07 | 1.14 | |
| Verizon Communications Inc. | 1.04 | 1.01 | 1.01 | 1.02 | 1.05 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Telecommunication Services | 0.99 | 0.97 | 0.95 | 0.94 | 1.10 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | 1.31 | 1.42 | 1.42 | 1.43 | 1.54 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 125,648 ÷ 154,201 = 0.81
2 Click competitor name to see calculations.
The analysis reveals a declining trend in net fixed asset turnover alongside relatively stable net fixed assets. Operating revenues experienced a significant decrease initially, followed by a period of stabilization and modest growth. This report details these observations.
- Operating Revenues
- Operating revenues decreased substantially from US$168,864 million in 2021 to US$120,741 million in 2022. Following this decline, revenues demonstrated a period of relative stability, increasing to US$122,428 million in 2023, then US$122,336 million in 2024, and finally reaching US$125,648 million in 2025. The 2025 value represents a modest recovery from the initial drop but remains below the 2021 level.
- Property, Plant and Equipment, Net (including operating lease, right-of-use asset)
- The value of property, plant, and equipment, net, remained remarkably consistent between 2021 and 2024, fluctuating between US$149,259 million and US$150,084 million. A slight increase was observed in 2025, with the value reaching US$154,201 million. This suggests limited capital expenditure or asset disposal activity during this period, with the 2025 increase potentially reflecting recent investments.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio experienced a pronounced decrease from 1.13 in 2021 to 0.81 in 2022. This ratio remained relatively flat between 2022 and 2025, oscillating between 0.81 and 0.82. The consistent ratio in recent years, coupled with the decline in revenues, indicates that the company is generating less revenue per dollar of fixed assets than it was in 2021. The stable ratio despite revenue growth in 2025 suggests that asset investment is keeping pace with revenue increases.
In summary, the observed trends suggest a period of operational adjustment following the significant revenue decline in 2022. While revenues have shown some recovery, the net fixed asset turnover ratio indicates a reduced efficiency in utilizing fixed assets to generate revenue compared to 2021. The stability of the ratio in recent periods suggests a potential equilibrium, but continued monitoring is warranted to assess the long-term implications of this shift.
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Total Asset Turnover
AT&T Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 125,648) | 122,336) | 122,428) | 120,741) | 168,864) | |
| Total assets | 420,198) | 394,795) | 407,060) | 402,853) | 551,622) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.30 | 0.31 | 0.30 | 0.30 | 0.31 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | 0.40 | 0.39 | 0.38 | 0.38 | 0.39 | |
| Verizon Communications Inc. | 0.34 | 0.35 | 0.35 | 0.36 | 0.36 | |
| Total Asset Turnover, Sector | ||||||
| Telecommunication Services | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | |
| Total Asset Turnover, Industry | ||||||
| Communication Services | 0.48 | 0.50 | 0.48 | 0.47 | 0.45 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Operating revenues ÷ Total assets
= 125,648 ÷ 420,198 = 0.30
2 Click competitor name to see calculations.
The analysis reveals a relatively stable total asset turnover ratio over the five-year period. Operating revenues experienced a significant decrease between 2021 and 2022, followed by modest fluctuations and a slight increase towards the end of the period. Total assets also decreased substantially from 2021 to 2022, and then exhibited a more gradual pattern of change, ultimately increasing in 2025.
- Total Asset Turnover
- The total asset turnover ratio remained consistently within a narrow range of 0.30 to 0.31 throughout the observed period. This indicates a stable level of efficiency in utilizing assets to generate revenue. There is no discernible upward or downward trend in this ratio. The ratio remained at 0.30 for three out of the five years.
- Operating Revenues
- Operating revenues decreased significantly from US$168,864 million in 2021 to US$120,741 million in 2022, representing a substantial decline. Revenues then showed a slight recovery, increasing to US$122,428 million in 2023, and remaining relatively flat at US$122,336 million in 2024. A further increase to US$125,648 million was observed in 2025, but revenues did not return to the levels seen in 2021.
- Total Assets
- Total assets mirrored the revenue trend with a large decrease from US$551,622 million in 2021 to US$402,853 million in 2022. Following this initial decline, assets fluctuated modestly, reaching US$407,060 million in 2023, decreasing to US$394,795 million in 2024, and then increasing to US$420,198 million in 2025. The asset base did not fully recover to its 2021 level during the period.
The consistency in the total asset turnover ratio, despite the changes in both operating revenues and total assets, suggests that the company has maintained a relatively stable operational efficiency in converting its assets into sales. The decrease in both revenues and assets in 2022 did not disproportionately impact the ratio, and the subsequent fluctuations were similarly offset.
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Equity Turnover
AT&T Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 125,648) | 122,336) | 122,428) | 120,741) | 168,864) | |
| Stockholders’ equity attributable to AT&T | 110,533) | 104,372) | 103,297) | 97,500) | 166,332) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.14 | 1.17 | 1.19 | 1.24 | 1.02 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | 1.49 | 1.32 | 1.21 | 1.14 | 1.16 | |
| Verizon Communications Inc. | 1.32 | 1.36 | 1.45 | 1.50 | 1.63 | |
| Equity Turnover, Sector | ||||||
| Telecommunication Services | 1.28 | 1.28 | 1.29 | 1.31 | 1.21 | |
| Equity Turnover, Industry | ||||||
| Communication Services | 1.07 | 1.12 | 1.13 | 1.16 | 1.09 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Operating revenues ÷ Stockholders’ equity attributable to AT&T
= 125,648 ÷ 110,533 = 1.14
2 Click competitor name to see calculations.
The equity turnover ratio exhibits a fluctuating pattern over the five-year period. While operating revenues demonstrate volatility, stockholders’ equity attributable to AT&T generally increased. The interplay between these two financial items influences the observed trends in equity turnover.
- Equity Turnover Trend
- The equity turnover ratio began at 1.02 in 2021. It increased to 1.24 in 2022, representing the largest single-year increase in the observed period. Subsequently, the ratio decreased to 1.19 in 2023, 1.17 in 2024, and further to 1.14 in 2025. This indicates a general downward trend in the latter part of the period, although the declines are less pronounced than the initial increase.
- Revenue and Equity Relationship
- Operating revenues decreased significantly from 2021 to 2022, while stockholders’ equity also decreased. The increase in equity turnover in 2022, despite the revenue decline, suggests a more efficient utilization of equity to generate revenue during that year. From 2022 to 2025, operating revenues experienced a modest increase, while stockholders’ equity showed a consistent, albeit gradual, increase. The concurrent decline in equity turnover during this period suggests that the growth in equity is outpacing the growth in revenue, leading to a less efficient use of equity.
The observed trend suggests a potential shift in the company’s capital structure or operational efficiency. Further investigation into the underlying drivers of revenue and equity changes is warranted to fully understand the implications of these trends.
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