Analysis of Reportable Segments
AT&T Inc. operates in 2 segments: Communications and Latin America.
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- Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Aggregate Accruals
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Segment Profit Margin
AT&T Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| Latin America |
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).
The segment profit margin for Communications exhibited a generally decreasing trend over the five-year period. While initially strong at 24.65% in 2021, it experienced a slight increase in 2022 to 24.86%, before declining consistently to 23.10% by 2025. The rate of decline appeared to moderate in the most recent year, with a smaller decrease from 23.03% in 2024.
- Communications Segment
- The Communications segment’s profit margin demonstrated relative stability at a high level in the initial years, followed by a gradual erosion. The 2021-2025 period saw an overall decrease of 1.55 percentage points. This suggests potential pressures on revenue, increasing costs, or a combination of both within this segment.
In contrast to the Communications segment, the Latin America segment experienced a significant improvement in profit margin throughout the observed period. Starting from a negative margin of -8.14% in 2021, it progressively moved towards profitability.
- Latin America Segment
- The Latin America segment’s profit margin showed a substantial positive trend. The segment moved from a loss position to a positive margin of 3.31% in 2025, representing a total improvement of 11.45 percentage points. This indicates successful turnaround efforts, improved operational efficiency, or favorable market conditions within the Latin America region.
- Segment Performance Divergence
- A notable divergence in performance is observed between the two segments. While the Communications segment experienced a decline in profitability, the Latin America segment demonstrated a strong recovery. This suggests differing dynamics and strategic priorities across these reportable segments.
The contrasting trends highlight the importance of segment-specific analysis when evaluating overall company performance. The positive trajectory of the Latin America segment partially offsets the declining margin in the Communications segment, but the overall impact requires further investigation into the underlying drivers of these changes.
Segment Profit Margin: Communications
AT&T Inc.; Communications; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × ÷ =
The segment experienced generally stable, though slightly declining, profitability over the five-year period. Operating income demonstrated initial growth followed by a period of fluctuation, while revenues exhibited a consistent upward trajectory. This resulted in a corresponding, albeit modest, decrease in the segment profit margin.
- Operating Income
- Operating income increased from US$28,279 million in 2021 to US$29,107 million in 2022, representing a growth of approximately 3.26%. A subsequent decrease was observed in 2023, falling to US$27,801 million. This trend continued into 2024 with a further decline to US$27,095 million. However, operating income showed a modest recovery in 2025, reaching US$27,927 million.
- Revenues
- Revenues consistently increased throughout the period. From US$114,730 million in 2021, revenues grew to US$117,067 million in 2022, then to US$118,038 million in 2023. A slight decrease occurred in 2024 to US$117,652 million, but revenues rebounded strongly in 2025, reaching US$120,896 million. This indicates consistent top-line growth despite fluctuations in operating income.
- Segment Profit Margin
- The segment profit margin peaked at 24.86% in 2022. Prior to this, the margin was 24.65% in 2021. A downward trend was then observed, with the margin decreasing to 23.55% in 2023 and further to 23.03% in 2024. The decline stabilized in 2025, with a margin of 23.10%. The consistent revenue growth was not sufficient to offset the fluctuations in operating income, resulting in the observed margin compression.
The combination of increasing revenues and fluctuating operating income suggests potential pressures on cost management or pricing within the segment. While revenue generation remains strong, maintaining profitability will likely require attention to operational efficiency and strategic pricing decisions.
Segment Profit Margin: Latin America
AT&T Inc.; Latin America; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × ÷ =
The Latin America segment demonstrated a significant improvement in financial performance between 2021 and 2025. Initially reporting operating losses, the segment transitioned to profitability over the analyzed period. This turnaround is reflected in a substantial increase in the segment profit margin.
- Operating Income (Loss)
- Operating income (loss) exhibited a consistent decline from a loss of US$436 million in 2021 to a loss of US$141 million in 2023. A turning point occurred in 2024, with operating income reaching US$40 million, and further increasing to US$145 million in 2025. This indicates successful implementation of cost control measures or revenue enhancement strategies.
- Revenues
- Revenues decreased considerably from US$5,354 million in 2021 to US$3,144 million in 2022. However, revenues began to recover in 2023, reaching US$3,932 million, and continued to grow to US$4,232 million in 2024 and US$4,379 million in 2025. The revenue growth, while not fully recovering to 2021 levels, supports the improvement in operating income.
- Segment Profit Margin
- The segment profit margin initially showed deterioration, moving from -8.14% in 2021 to -10.37% in 2022, reflecting the decline in revenues and continued losses. A positive trend emerged in 2023, with the margin improving to -3.59%. This improvement accelerated in 2024 and 2025, reaching 0.95% and 3.31% respectively, signifying a return to profitability and increasing operational efficiency. The substantial shift from negative to positive margins highlights a successful restructuring or strategic refocus within the segment.
The combined trends suggest that while the segment initially faced challenges related to revenue and profitability, strategic adjustments implemented between 2023 and 2025 resulted in a notable financial recovery. The increasing segment profit margin indicates improved cost management and/or increased pricing power within the Latin America market.
Segment Return on Assets (Segment ROA)
AT&T Inc., ROA by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| Latin America |
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).
Segment return on assets (ROA) exhibited differing performance trends across the reported segments between 2021 and 2025. The Communications segment demonstrated relative stability, while the Latin America segment showed a marked improvement over the period.
- Communications Segment
- The Communications segment’s ROA fluctuated modestly over the five-year period. Beginning at 5.72% in 2021, it increased to 6.17% in 2022 before declining to 5.52% in 2023. A slight recovery to 5.62% was observed in 2024, followed by a further decrease to 5.58% in 2025. Overall, the segment maintained a positive ROA throughout the period, but without significant directional movement.
- Latin America Segment
- The Latin America segment experienced a substantial shift in ROA. Starting with a negative return of -4.91% in 2021, the segment progressively improved its performance. The ROA lessened its negative impact to -3.88% in 2022 and -1.51% in 2023. By 2024, the segment achieved a positive ROA of 0.51%, which continued to grow to 1.53% in 2025. This represents a significant turnaround in profitability for this segment.
- Comparative Analysis
- While the Communications segment consistently generated positive returns, the Latin America segment’s trajectory indicates a successful effort to improve asset utilization and profitability. The difference between the two segments’ ROAs narrowed considerably over the period, with the Latin America segment moving from a substantial deficit to a positive and growing return. The Communications segment’s relative stability contrasts with the dynamic changes observed in the Latin America segment.
Segment ROA: Communications
AT&T Inc.; Communications; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × ÷ =
The segment’s operating income demonstrated relative stability over the five-year period, fluctuating between approximately US$27 billion and US$29 billion. While a slight increase was observed from 2021 to 2022, operating income experienced a modest decline in 2023 before stabilizing and showing a minor increase in 2025. Assets exhibited a more pronounced fluctuation, decreasing in 2022, increasing significantly in 2023, and then decreasing again in 2024 before stabilizing in 2025. These asset movements appear to influence the segment’s Return on Assets (ROA).
- Segment ROA Trend
- Segment ROA showed an initial increase from 5.72% in 2021 to 6.17% in 2022. This improvement coincided with the increase in operating income and a decrease in assets. A subsequent decrease to 5.52% was noted in 2023, likely attributable to the increase in assets outpacing the decline in operating income. The ROA recovered slightly in 2024 to 5.62% and remained relatively stable at 5.58% in 2025. Overall, the segment ROA has remained within a narrow range, indicating consistent, though not dramatically improving, profitability relative to its asset base.
The correlation between asset levels and segment ROA is apparent. The largest increase in assets in 2023 corresponded with the lowest ROA during the analyzed period. The relatively consistent operating income suggests that changes in ROA are primarily driven by asset management and deployment within the segment. The stabilization of both assets and operating income in the later years contributes to the stabilization of the segment ROA.
- Operating Income and Asset Relationship
- The segment’s ability to generate operating income from its asset base appears consistent. However, the efficiency with which assets are utilized to generate income, as measured by ROA, is sensitive to changes in the asset base. Further investigation into the composition of asset changes could provide insights into the drivers of ROA fluctuations.
In conclusion, the segment demonstrates a stable operating performance with a consistent ROA, although the ROA is influenced by the level of assets deployed. The observed trends suggest a focus on maintaining profitability while managing asset levels.
Segment ROA: Latin America
AT&T Inc.; Latin America; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × ÷ =
The Latin America segment demonstrated a significant improvement in financial performance between 2021 and 2025. Initially reporting operating losses, the segment transitioned to profitability during the analyzed period. This improvement is reflected in a corresponding positive trend in Segment Return on Assets (ROA).
- Operating Income (Loss)
- Operating income (loss) began at a loss of US$436 million in 2021. This loss narrowed to US$326 million in 2022 and further decreased to US$141 million in 2023. By 2024, the segment achieved an operating income of US$40 million, which increased substantially to US$145 million in 2025. This indicates a consistent and accelerating positive trend in operational profitability.
- Assets
- The value of assets within the Latin America segment fluctuated over the five-year period. Assets decreased from US$8,874 million in 2021 to US$8,408 million in 2022, then increased to US$9,314 million in 2023. A decrease was observed in 2024, with assets falling to US$7,808 million, before rising again to US$9,460 million in 2025. Despite these fluctuations, asset levels remained relatively stable overall.
- Segment ROA
- Segment ROA mirrored the trend in operating income (loss). Starting at -4.91% in 2021, ROA improved to -3.88% in 2022 and -1.51% in 2023. A positive ROA of 0.51% was achieved in 2024, and further increased to 1.53% in 2025. The progression from negative to positive ROA demonstrates a strengthening ability to generate earnings from the segment’s asset base.
The positive correlation between operating income and Segment ROA suggests that improvements in operational efficiency and profitability are directly translating into enhanced returns on invested capital within the Latin America segment. The increase in assets in 2025, coupled with continued ROA growth, indicates effective asset utilization.
Segment Asset Turnover
AT&T Inc., asset turnover by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| Latin America |
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 segment asset turnover reveals differing performance patterns between the Communications and Latin America segments over the five-year period. The Communications segment demonstrates relative stability, while the Latin America segment exhibits more pronounced fluctuations.
- Communications Segment
- The Communications segment’s asset turnover ratio remained consistently within a narrow range, fluctuating between 0.23 and 0.25. The ratio began at 0.23 in 2021, increased to 0.25 in 2022, then decreased back to 0.23 in 2023. It subsequently rose slightly to 0.24 in 2024 and remained at that level through 2025. This suggests a stable, though relatively low, efficiency in utilizing assets to generate revenue within this segment.
- Latin America Segment
- The Latin America segment experienced more volatility. The asset turnover ratio decreased significantly from 0.60 in 2021 to 0.37 in 2022. A partial recovery was observed in 2023, with the ratio increasing to 0.42. Further improvement occurred in 2024, reaching 0.54, before declining to 0.46 in 2025. This pattern indicates potential operational or market-related changes impacting asset utilization within the Latin America segment.
- Comparative Analysis
- Throughout the period, the Latin America segment generally exhibited a higher asset turnover ratio than the Communications segment, with the exception of 2021. However, the trend for Latin America is less consistent. The Communications segment’s steadiness contrasts with the Latin America segment’s more dynamic, and potentially less predictable, asset utilization.
The observed differences in asset turnover between the segments may warrant further investigation to understand the underlying drivers and potential implications for resource allocation and strategic decision-making.
Segment Asset Turnover: Communications
AT&T Inc.; Communications; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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
Segment asset turnover = Revenues ÷ Assets
= ÷ =
The Communications segment demonstrated relatively stable revenue generation between 2021 and 2025, fluctuating between approximately US$114.7 billion and US$120.9 billion. Assets allocated to this segment exhibited more volatility, initially decreasing from US$494.1 billion in 2021 to US$471.4 billion in 2022, then increasing to US$504.0 billion in 2023, decreasing again to US$481.8 billion in 2024, and finally rising to US$500.2 billion in 2025.
- Segment Asset Turnover
- The segment asset turnover ratio remained consistently within a narrow range throughout the analyzed period. It began at 0.23 in 2021, increased to 0.25 in 2022, and then settled back to 0.23 in 2023. The ratio experienced a slight increase to 0.24 in 2024 and remained at that level through 2025. This indicates a relatively consistent efficiency in generating revenue from the assets employed within the Communications segment.
- Revenue and Asset Relationship
- Despite the fluctuations in asset levels, the segment asset turnover ratio’s stability suggests a strong correlation between revenue and asset changes. The increase in revenue in 2022 coincided with a decrease in assets, resulting in a higher turnover ratio. Conversely, the increase in assets in 2023, coupled with a slight revenue decrease, led to a lower turnover ratio. This pattern continued through 2025, indicating that asset deployment is generally aligned with revenue generation within the segment.
- Overall Trend
- The overall trend suggests a mature segment with predictable asset utilization. The lack of significant change in the asset turnover ratio implies that the company is maintaining a consistent operational approach regarding asset deployment and revenue generation within the Communications segment. While asset levels fluctuate, the efficiency with which those assets are used to generate revenue remains largely unchanged.
Segment Asset Turnover: Latin America
AT&T Inc.; Latin America; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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
Segment asset turnover = Revenues ÷ Assets
= ÷ =
The Latin America segment experienced fluctuating financial performance between 2021 and 2025. Revenues initially decreased significantly before exhibiting a recovery, while assets demonstrated a more volatile pattern. The segment asset turnover ratio mirrored these shifts, indicating changes in the efficiency of asset utilization.
- Revenues
- Revenues decreased from US$5,354 million in 2021 to US$3,144 million in 2022, representing a substantial decline. A subsequent recovery was observed, with revenues increasing to US$3,932 million in 2023 and further to US$4,232 million in 2024. This upward trend continued into 2025, reaching US$4,379 million. The 2025 revenue figure, while improved, remains below the 2021 level.
- Assets
- Assets decreased from US$8,874 million in 2021 to US$8,408 million in 2022. An increase followed in 2023, with assets reaching US$9,314 million. A notable decrease occurred in 2024, with assets falling to US$7,808 million, the lowest value in the observed period. Assets then increased again in 2025, reaching US$9,460 million, surpassing the 2023 value and representing the highest level recorded.
- Segment Asset Turnover
- The segment asset turnover ratio decreased from 0.60 in 2021 to 0.37 in 2022, coinciding with the revenue decline and indicating reduced efficiency in generating revenue from assets. The ratio partially recovered to 0.42 in 2023, aligning with the revenue increase. A further improvement was seen in 2024, with the ratio reaching 0.54, the highest value in the period. However, the ratio decreased to 0.46 in 2025, despite continued revenue growth, suggesting a less efficient utilization of the increased asset base.
The fluctuations in asset levels appear to have a significant impact on the segment asset turnover ratio. While revenue growth in 2024 and 2025 is positive, the ratio’s performance suggests that asset management strategies warrant further investigation to optimize revenue generation.
Segment Capital Expenditures to Depreciation
AT&T Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| Latin America |
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 segment capital expenditures relative to depreciation reveals differing patterns between the Communications and Latin America segments over the five-year period. The Communications segment demonstrates relative stability, while the Latin America segment exhibits a consistent decline.
- Communications Segment
- The ratio for the Communications segment began at 0.91 in 2021, increased to 1.14 in 2022, and subsequently stabilized, fluctuating between 0.97 and 0.99 for the years 2023 through 2025. This initial increase suggests a period of heightened capital investment relative to depreciation, followed by a return to levels comparable to the beginning of the period. The recent consistency may indicate a balanced approach to capital spending and asset utilization within this segment.
- Latin America Segment
- In contrast, the Latin America segment experienced a steady decrease in the ratio, moving from 0.69 in 2021 to 0.41 in 2025. This consistent decline suggests that capital expenditures have been consistently lower than depreciation expense within this segment. This trend could indicate a reduced focus on capital investment, potentially due to economic conditions or strategic shifts, or a higher rate of asset depreciation relative to new investments. The ratio remaining constant at 0.41 for 2024 and 2025 suggests this trend has stabilized, but remains significantly lower than the Communications segment.
The divergence in trends between the two segments warrants further investigation. Understanding the underlying drivers of these changes – including specific investment projects, asset lifecycles, and regional economic factors – is crucial for assessing the long-term sustainability and performance of each segment.
Segment Capital Expenditures to Depreciation: Communications
AT&T Inc.; Communications; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
Over the five-year period ending December 31, 2025, capital expenditures within the Communications segment exhibited fluctuations, while depreciation and amortization demonstrated a consistent upward trajectory. The resulting ratio of segment capital expenditures to depreciation displayed a generally stable pattern, oscillating around one. Initial observations suggest a period of investment followed by a stabilization of capital spending relative to the existing asset base.
- Capital Expenditures
- Capital expenditures increased from US$14,860 million in 2021 to US$18,962 million in 2022, representing a significant rise. A subsequent decrease to US$16,876 million occurred in 2023, followed by increases in both 2024 (US$19,335 million) and 2025 (US$19,588 million). The values for 2024 and 2025 are relatively close, indicating a potential plateau in investment levels.
- Depreciation and Amortization
- Depreciation and amortization consistently increased throughout the period, moving from US$16,409 million in 2021 to US$19,959 million in 2025. This steady increase suggests a growing asset base subject to depreciation, or potentially changes in depreciation methods. The growth was relatively consistent year-over-year.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation began at 0.91 in 2021. It rose to 1.14 in 2022, indicating that capital expenditures exceeded depreciation during that year. The ratio then decreased to 0.97 in 2023 and stabilized around 0.99 in 2024 and 0.98 in 2025. This suggests that, after the initial surge in capital spending in 2022, investment levels have aligned more closely with the depreciation of existing assets. A value near one implies that capital spending is roughly equivalent to the annual depreciation expense, potentially indicating a maintenance level of investment.
In summary, the Communications segment experienced a period of increased capital investment in 2022, followed by a return to a more balanced relationship between capital expenditures and depreciation. The ratio’s stabilization suggests a shift towards sustaining the current asset base rather than significant expansion.
Segment Capital Expenditures to Depreciation: Latin America
AT&T Inc.; Latin America; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
Analysis of capital expenditures and depreciation within the Latin America segment reveals a consistent pattern over the five-year period. Capital expenditures have decreased, while depreciation and amortization have remained relatively stable, resulting in a declining ratio of capital expenditures to depreciation.
- Capital Expenditures
- Capital expenditures in the Latin America segment decreased from US$580 million in 2021 to US$360 million in 2022, representing a substantial reduction. This decline continued through 2023, reaching US$298 million, and stabilized somewhat in the subsequent two years at US$269 million and US$276 million respectively. The overall trend indicates a significant and sustained decrease in investment within this segment.
- Depreciation and Amortization
- Depreciation and amortization exhibited more stability. The value decreased from US$836 million in 2021 to US$658 million in 2022. It then increased to US$724 million in 2023 before decreasing again to US$657 million in 2024. The final year, 2025, showed a slight increase to US$671 million. While fluctuations occurred, the values remained within a relatively narrow range compared to the changes observed in capital expenditures.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation decreased consistently from 0.69 in 2021. A more pronounced decline was observed in 2022, falling to 0.55. This downward trend continued, reaching 0.41 in 2023 and remaining constant at 0.41 for both 2024 and 2025. This suggests that the segment is generating more depreciation relative to new investments, potentially indicating a reliance on existing assets or a shift in investment strategy.
The sustained decrease in the capital expenditures to depreciation ratio warrants further investigation. It could signify a maturing of the asset base, a change in strategic priorities, or potentially reduced opportunities for growth within the Latin America segment. The stability of depreciation suggests that the existing asset base is being utilized, but the reduced investment may impact future growth potential.
Revenues
AT&T Inc., revenues by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| WarnerMedia | |||||
| Latin America | |||||
| Segment total | |||||
| Corporate and eliminations | |||||
| Total |
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).
Overall revenues exhibited volatility throughout the observed period. A significant shift in segment composition is apparent, particularly with the discontinuation of reported figures for WarnerMedia after 2021. The 'Segment total' revenue demonstrates an initial decline followed by relative stabilization and modest growth.
- Communications Revenue
- Communications revenue, the largest component, showed a gradual increase from US$114,730 million in 2021 to US$120,896 million in 2025. While not consistently increasing year-over-year, the trend suggests a resilient core business. A slight decrease was observed between 2022 and 2024.
- WarnerMedia Revenue
- WarnerMedia reported US$35,632 million in revenue for 2021. Subsequent years show no reported revenue for this segment, indicating a divestiture or restructuring that removed it from the reporting structure after 2021.
- Latin America Revenue
- Latin America revenue experienced fluctuations. It decreased substantially from US$5,354 million in 2021 to US$3,144 million in 2022, before recovering to US$4,379 million in 2025. This suggests potential regional economic impacts or strategic shifts affecting performance in that market.
- Segment Total Revenue
- Segment total revenue decreased significantly from US$155,716 million in 2021 to US$120,211 million in 2022, largely attributable to the absence of WarnerMedia revenue. From 2022 to 2025, the segment total demonstrated a more stable pattern, increasing from US$120,211 million to US$125,275 million. This indicates a recovery and modest growth following the initial decline.
- Corporate and Eliminations
- Corporate and eliminations revenue consistently decreased throughout the period, from US$13,148 million in 2021 to US$373 million in 2025. This reduction likely reflects efficiencies in corporate overhead or changes in intersegment transactions.
- Total Revenue
- Total revenue mirrored the trend of segment total revenue, declining from US$168,864 million in 2021 to US$120,741 million in 2022, and then exhibiting a gradual increase to US$125,648 million in 2025. The overall trend suggests a period of adjustment followed by stabilization and modest growth.
Depreciation and amortization
AT&T Inc., depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| WarnerMedia | |||||
| Latin America | |||||
| Segment total | |||||
| Corporate and eliminations | |||||
| Total |
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).
Depreciation and amortization expense exhibited varied trends across reportable segments between 2021 and 2025. Overall, total depreciation and amortization initially decreased before resuming an upward trajectory. A significant shift in the composition of this expense is apparent, particularly with the inclusion and subsequent absence of WarnerMedia figures.
- Communications Segment
- The Communications segment consistently represented the largest portion of total depreciation and amortization. An increasing trend is observed in this segment, rising from US$16,409 million in 2021 to US$19,959 million in 2025. The rate of increase accelerated between 2022 and 2024, suggesting potentially increased capital investment in this area.
- WarnerMedia Segment
- WarnerMedia reported US$656 million in depreciation and amortization for 2021. This figure is absent for subsequent years, indicating a change in reporting structure or the disposition of this segment. The absence of this expense impacts the overall total and necessitates consideration when comparing year-over-year figures.
- Latin America Segment
- Depreciation and amortization within the Latin America segment demonstrated relative stability. The expense began at US$836 million in 2021, decreased to US$658 million in 2022, and then gradually increased to US$671 million by 2025. Fluctuations within this segment were less pronounced than those observed in the Communications segment.
- Segment Total
- The combined depreciation and amortization for all segments initially decreased from US$17,901 million in 2021 to US$17,339 million in 2022, coinciding with the removal of WarnerMedia’s expense. Subsequently, the segment total increased, reaching US$20,630 million in 2025, driven primarily by growth in the Communications segment.
- Corporate and Eliminations
- Depreciation and amortization related to corporate activities and eliminations experienced a substantial decrease over the period. Starting at US$4,961 million in 2021, it declined significantly to US$256 million in 2025. This reduction may be attributable to restructuring activities, changes in allocation methodologies, or the disposal of corporate assets.
- Total Depreciation and Amortization
- Total depreciation and amortization mirrored the trends of the segment total, decreasing from US$22,862 million in 2021 to US$18,021 million in 2022, then increasing to US$20,886 million in 2025. The decrease in 2022 was largely influenced by the absence of WarnerMedia’s expense and the significant reduction in corporate and eliminations. The subsequent increase reflects the growth in the Communications segment.
Operating income (loss)
AT&T Inc., operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| WarnerMedia | |||||
| Latin America | |||||
| Segment total | |||||
| Corporate and eliminations | |||||
| Total |
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).
The operating income performance across reportable segments demonstrates significant fluctuations over the five-year period. Communications consistently contributes the largest portion of segment operating income, while other segments exhibit more volatile results. Overall, the consolidated operating income shows considerable variability, heavily influenced by the performance of the 'Corporate and eliminations' line item.
- Communications Segment
- The Communications segment experienced a moderate increase in operating income from 2021 to 2022, rising from US$28,279 million to US$29,107 million. Subsequently, a slight decline was observed in 2023, decreasing to US$27,801 million, followed by a further decrease in 2024 to US$27,095 million. A modest recovery is noted in 2025, with operating income reaching US$27,927 million. This segment demonstrates relative stability compared to others, though a long-term stagnation is apparent.
- WarnerMedia Segment
- WarnerMedia reported US$7,239 million in operating income in 2021. No operating income is reported for this segment in subsequent years, suggesting a divestiture or significant restructuring occurred after 2021. The absence of this income stream significantly impacts consolidated results.
- Latin America Segment
- The Latin America segment consistently reported operating losses throughout the period, although the magnitude of these losses decreased over time. Losses of US$436 million in 2021 decreased to US$326 million in 2022 and further to US$141 million in 2023. A notable shift to operating income occurred in 2024, with a profit of US$40 million, which increased to US$145 million in 2025. This represents a substantial improvement in the segment’s financial performance.
- Segment Total
- The combined operating income of the reportable segments decreased substantially from US$35,082 million in 2021 to US$28,781 million in 2022, largely due to the disappearance of WarnerMedia’s income. Operating income remained relatively flat between 2022 and 2024, fluctuating around US$27-28 billion. A slight increase to US$28,072 million is observed in 2025.
- Corporate and Eliminations
- The 'Corporate and eliminations' line item exhibits significant volatility. A loss of US$11,735 million in 2021 increased dramatically to a loss of US$33,368 million in 2022. This was followed by a substantial reduction in losses to US$4,199 million in 2023, then increased again to US$8,086 million in 2024, before decreasing to US$3,910 million in 2025. This line item’s fluctuations heavily influence the overall consolidated operating income.
- Total Operating Income
- Consolidated operating income decreased from US$23,347 million in 2021 to a loss of US$4,587 million in 2022. A recovery occurred in 2023, with operating income reaching US$23,461 million. This was followed by a decrease to US$19,049 million in 2024, and a subsequent increase to US$24,162 million in 2025. The overall trend demonstrates considerable sensitivity to the performance of the 'Corporate and eliminations' line item and the absence of WarnerMedia’s contribution after 2021.
Assets
AT&T Inc., assets by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| WarnerMedia | |||||
| Latin America | |||||
| Segment total | |||||
| Corporate and eliminations | |||||
| Total |
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).
The reported segment assets demonstrate considerable fluctuation over the five-year period. A significant shift in asset allocation is evident, particularly between 2021 and 2022, followed by stabilization and modest growth in subsequent years.
- Communications Segment
- Assets within the Communications segment began at US$494.063 billion in 2021, decreased to US$471.444 billion in 2022, and then increased to US$504.006 billion in 2023. A slight decrease to US$481.757 billion was observed in 2024, followed by a further increase to US$500.244 billion in 2025. This segment consistently represents the largest portion of reported assets.
- WarnerMedia Segment
- WarnerMedia reported assets of US$154.369 billion in 2021. No asset values are reported for this segment in the years 2022 through 2025, suggesting a divestiture or restructuring impacting the reporting of these assets.
- Latin America Segment
- The Latin America segment exhibited relatively stable asset values, ranging from US$7.808 billion to US$9.460 billion throughout the period. A gradual increase is observed from 2022 to 2025, though the overall impact on total assets is limited due to the segment’s smaller size.
- Segment Total
- Total segment assets decreased substantially from US$657.306 billion in 2021 to US$479.852 billion in 2022. Assets then showed a moderate recovery, reaching US$513.320 billion in 2023, US$489.565 billion in 2024, and US$509.704 billion in 2025. The 2022 decline largely correlates with the disappearance of reported assets for the WarnerMedia segment.
- Corporate and Eliminations
- Corporate and elimination entries are consistently negative, representing intercompany transactions and adjustments. The absolute value of these entries decreased from US$105.684 billion in 2021 to US$89.506 billion in 2025, indicating a potential reduction in internal allocations or a change in consolidation practices.
- Total Assets
- Total consolidated assets experienced a significant decrease from US$551.622 billion in 2021 to US$402.853 billion in 2022. Subsequent years show a slow recovery, with total assets reaching US$420.198 billion by 2025. The trend mirrors the fluctuations in segment total assets, influenced heavily by the changes within the WarnerMedia segment and the Communications segment.
Overall, the asset profile underwent a substantial transformation, primarily driven by the absence of WarnerMedia assets after 2021. The Communications segment remains the dominant asset base, exhibiting moderate fluctuations. The Latin America segment demonstrates relative stability, while corporate eliminations show a decreasing trend.
Capital expenditures
AT&T Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Communications | |||||
| WarnerMedia | |||||
| Latin America | |||||
| Segment total | |||||
| Corporate and eliminations | |||||
| Total |
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).
Capital expenditures exhibited an overall increasing trend from 2021 to 2025, though with some fluctuations. Segment-level analysis reveals differing patterns across the reporting units. Total capital expenditures increased from US$16.527 billion in 2021 to US$20.842 billion in 2025.
- Communications Segment
- The Communications segment consistently represented the largest portion of total capital expenditures. Expenditures within this segment increased from US$14.860 billion in 2021 to US$18.962 billion in 2022, then decreased to US$16.876 billion in 2023. A subsequent increase was observed in 2024, reaching US$19.335 billion, followed by a further increase to US$19.588 billion in 2025. This suggests a cyclical pattern of investment within the Communications segment.
- WarnerMedia Segment
- Capital expenditures for the WarnerMedia segment were reported at US$764 million in 2021. No expenditures were reported for this segment in 2022, 2023, 2024, or 2025. This could indicate a shift in investment strategy or a restructuring of the segment.
- Latin America Segment
- The Latin America segment demonstrated a consistent downward trend in capital expenditures from 2021 to 2023, decreasing from US$580 million to US$298 million. Expenditures stabilized in 2024 and 2025, at US$269 million and US$276 million respectively. This suggests a potential scaling back of investment in this region.
- Corporate and Eliminations
- Capital expenditures categorized as Corporate and Eliminations were relatively low in 2021 and 2022, at US$323 million and US$304 million respectively. A significant increase was observed in 2023, reaching US$679 million, followed by US$659 million in 2024 and a further increase to US$978 million in 2025. This substantial rise may be attributable to central initiatives or consolidation of investments.
The combined effect of these segment-level trends resulted in overall capital expenditure growth. The increase in Corporate and Eliminations spending contributed significantly to the overall rise in capital expenditures, particularly in the later years of the observed period.