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.
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
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Long-term Activity Ratios (Summary)
AT&T Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 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), 10-K (reporting date: 2020-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a declining trend from 1.35 in 2020 to 0.95 in 2022, maintaining stability at that level through 2024. This indicates a reduced efficiency in utilizing fixed assets to generate revenue over the period analyzed.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The ratio including operating lease and right-of-use assets also showed a similar downward trajectory, decreasing from 1.13 in 2020 and 2021 to around 0.81-0.82 from 2022 onward. This suggests that incorporating leased assets does not alter the declining utilization efficiency observed in fixed assets.
- Total Asset Turnover
- Total asset turnover remained relatively stable but demonstrated a slight decline from 0.33 in 2020 to 0.30 by 2022 and 2023, with a marginal increase back to 0.31 in 2024. This pattern indicates little change in the efficiency of total asset use in generating sales, reflecting a generally consistent performance in this area.
- Equity Turnover
- Equity turnover showed some variability, starting at 1.06 in 2020, decreasing slightly to 1.02 in 2021, then increasing to a peak of 1.24 in 2022 before gradually declining to 1.19 in 2023 and 1.17 in 2024. This suggests fluctuations in how effectively the equity base is employed to drive revenue, with a notable improvement in 2022 followed by a moderate retracement.
Net Fixed Asset Turnover
AT&T Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Telecommunication Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Operating revenues ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenues
- Operating revenues exhibited a decline over the observed period. Starting at 171,760 million US dollars in 2020, revenues decreased slightly to 168,864 million in 2021, followed by a more pronounced drop to 120,741 million in 2022. Revenues then stabilized around 122,400 million in 2023 and 122,336 million in 2024. This indicates a significant reduction in revenue between 2021 and 2022, with limited recovery thereafter.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment showed minor fluctuations, maintaining a relatively stable trend. The value was 127,315 million US dollars in 2020, slightly declining to 125,904 million in 2021. It then increased to 127,445 million in 2022, continuing with marginal growth to 128,489 million in 2023 and 128,871 million in 2024. This reflects a cautious but consistent investment in fixed assets over the years, with no sharp decreases.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio demonstrates a clear downward trend. In 2020, the ratio was 1.35, decreasing slightly to 1.34 in 2021. The ratio dropped significantly to 0.95 in 2022 and remained constant at 0.95 through 2023 and 2024. This decline suggests a reduced efficiency in generating revenues from the fixed asset base starting in 2022, aligning with the observed sharp fall in operating revenues during the same period.
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| T-Mobile US Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Telecommunication Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 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)
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenues
- The operating revenues exhibit a downward trend from 2020 to 2022, decreasing from 171,760 million US dollars in 2020 to 120,741 million US dollars in 2022. Following this decline, the revenues stabilize around 122,000 million US dollars in 2023 and 2024, indicating a period of relative revenue stabilization after the sharp drop.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment (including operating lease and right-of-use assets) remains relatively stable over the analyzed period. It shows a slight decrease from 152,029 million US dollars in 2020 to 149,259 million US dollars in 2022, followed by a marginal increase to 149,780 million US dollars by 2024, suggesting steady investment or asset base maintenance.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio exhibits a significant decline from 1.13 in 2020 and 2021 to approximately 0.81 in 2022 and stabilizes around 0.82 in 2023 and 2024. This drop indicates a decreased efficiency in generating revenues from fixed assets during the period when revenues fell substantially, reflecting possibly diminished asset utilization or revenue generation capacity relative to the asset base.
- Summary of Trends and Insights
- The overall analysis reveals a notable decrease in operating revenues in 2022, followed by a stabilization phase. Despite this revenue reduction, the net fixed assets experienced only minor fluctuations, which, coupled with the decline in net fixed asset turnover, suggests reduced efficiency in asset use. This pattern may reflect external market pressures or operational challenges impacting revenue generation without a corresponding reduction in assets. The stabilization of both revenues and asset turnover in the latter years could imply efforts towards operational adjustments or market recovery.
Total Asset Turnover
AT&T Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Telecommunication Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Operating revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenues
- The operating revenues exhibit a declining trend from 2020 to 2022, dropping from 171,760 million US dollars to 120,741 million US dollars. After 2022, revenues stabilize, with slight increases and a nearly constant figure around 122,300 million US dollars through 2023 and 2024. This suggests a significant decrease in revenue in the initial years followed by a plateau in recent periods.
- Total Assets
- Total assets show a similar pattern to revenues, initially rising from 525,761 million US dollars in 2020 to 551,622 million in 2021. However, there is a notable reduction in the asset base afterward, falling to 402,853 million US dollars in 2022, followed by a marginal increase in 2023 and a further decline to 394,795 million in 2024. This indicates a contraction of asset size in recent years, potentially reflecting divestitures or depreciation effects.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable over the five-year span, fluctuating slightly between 0.30 and 0.33. The ratio dips from 0.33 in 2020 to 0.30 in 2022 and 2023, then recovers marginally to 0.31 in 2024. This constancy in turnover ratio alongside declining asset and revenue figures suggests consistent efficiency in asset usage over time despite overall lower scale of operations.
Equity Turnover
AT&T Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | ||||||
| Stockholders’ equity attributable to AT&T | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| T-Mobile US Inc. | ||||||
| Verizon Communications Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Telecommunication Services | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Operating revenues ÷ Stockholders’ equity attributable to AT&T
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several trends over the five-year period ending December 31, 2024.
- Operating Revenues
- Operating revenues showed a decline from 171,760 million US dollars in 2020 to 168,864 million in 2021. This trend continued more sharply in 2022, falling to 120,741 million. The revenues then stabilized somewhat in 2023 and 2024, with slight increases to 122,428 million and a marginal decline to 122,336 million, respectively. Overall, the data suggests a significant reduction in operating revenues between 2020 and 2022, followed by a period of stabilization.
- Stockholders’ Equity Attributable to AT&T
- Stockholders’ equity displayed a similar declining trend. Starting at 161,673 million US dollars in 2020, it increased slightly to 166,332 million in 2021 before decreasing substantially to 97,500 million in 2022. After the sharp decline, equity values increased moderately in 2023 and 2024, reaching 103,297 million and 104,372 million respectively. This indicates an initial increase, followed by a pronounced drop, and then gradual recovery over the final two years.
- Equity Turnover Ratio
- The equity turnover ratio started at 1.06 in 2020 and decreased slightly to 1.02 in 2021. It then increased noticeably in 2022 to 1.24 and declined slightly to 1.19 and 1.17 in 2023 and 2024, respectively. This trend suggests that the company’s efficiency in generating revenues from equity improved significantly in 2022, corresponding with the equity drop, and then slightly normalized in subsequent years.