Microsoft Excel LibreOffice Calc

AT&T Inc. (T)

Short-term (Operating) Activity Analysis

Difficulty: Beginner

  • Annual Data
  • Quarterly Data

    • Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

    Ratios (Summary)

    AT&T Inc., short-term (operating) activity ratios

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Turnover Ratios
    Inventory turnover 34.78 37.71 16.62 31.36 44.83
    Receivables turnover 9.72 9.75 8.88 9.12 9.97
    Payables turnover 3.17 3.49 3.19 4.05 4.45
    Working capital turnover – – – – –
    Average No. of Days
    Average inventory processing period 10 10 22 12 8
    Add: Average receivable collection period 38 37 41 40 37
    Operating cycle 48 47 63 52 45
    Less: Average payables payment period 115 105 115 90 82
    Cash conversion cycle -67 -58 -52 -38 -37

    Source: Based on data from AT&T Inc. Annual Reports

    Ratio Description The company
    Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. AT&T Inc.'s inventory turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
    Receivables turnover An activity ratio equal to revenue divided by receivables. AT&T Inc.'s receivables turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
    Payables turnover An activity ratio calculated as cost of goods sold divided by payables. AT&T Inc.'s payables turnover increased from 2015 to 2016 but then declined significantly from 2016 to 2017.
    Working capital turnover An activity ratio calculated as revenue divided by working capital.
    Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
    Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. AT&T Inc.'s average receivable collection period improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
    Operating cycle Equal to average inventory processing period plus average receivables collection period. AT&T Inc.'s operating cycle improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
    Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
    Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. AT&T Inc.'s cash conversion cycle improved from 2015 to 2016 and from 2016 to 2017.

    Inventory Turnover

    AT&T Inc., inventory turnover calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in millions)
    Cost of services and sales 77,379  76,884  67,046  60,611  51,464 
    Inventory 2,225  2,039  4,033  1,933  1,148 
    Ratio
    Inventory turnover1 34.78 37.71 16.62 31.36 44.83
    Benchmarks
    Inventory Turnover, Competitors
    Verizon Communications Inc. 49.86 42.78 41.98 43.31 44.01
    Inventory Turnover, Sector
    Fixed Line Telecommunications 39.56 39.59 22.63 35.82 44.44

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Inventory turnover = Cost of services and sales ÷ Inventory
    = 77,379 ÷ 2,225 = 34.78

    Ratio Description The company
    Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. AT&T Inc.'s inventory turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

    Receivables Turnover

    AT&T Inc., receivables turnover calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in millions)
    Operating revenues 160,546  163,786  146,801  132,447  128,752 
    Accounts receivable, net of allowances for doubtful accounts 16,522  16,794  16,532  14,527  12,918 
    Ratio
    Receivables turnover1 9.72 9.75 8.88 9.12 9.97
    Benchmarks
    Receivables Turnover, Competitors
    Verizon Communications Inc. 5.36 7.19 9.78 9.08 9.69
    Receivables Turnover, Sector
    Fixed Line Telecommunications 7.16 8.45 9.28 9.10 9.83

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Receivables turnover = Operating revenues ÷ Accounts receivable, net of allowances for doubtful accounts
    = 160,546 ÷ 16,522 = 9.72

    Ratio Description The company
    Receivables turnover An activity ratio equal to revenue divided by receivables. AT&T Inc.'s receivables turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

    Payables Turnover

    AT&T Inc., payables turnover calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in millions)
    Cost of services and sales 77,379  76,884  67,046  60,611  51,464 
    Accounts payable 24,439  22,027  21,047  14,984  11,561 
    Ratio
    Payables turnover1 3.17 3.49 3.19 4.05 4.45
    Benchmarks
    Payables Turnover, Competitors
    Verizon Communications Inc. 7.30 7.26 8.22 8.92 9.06
    Payables Turnover, Sector
    Fixed Line Telecommunications 4.09 4.41 4.36 5.37 5.83

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Payables turnover = Cost of services and sales ÷ Accounts payable
    = 77,379 ÷ 24,439 = 3.17

    Ratio Description The company
    Payables turnover An activity ratio calculated as cost of goods sold divided by payables. AT&T Inc.'s payables turnover increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

    Working Capital Turnover

    AT&T Inc., working capital turnover calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in millions)
    Current assets 79,146  38,369  35,992  32,028  23,196 
    Less: Current liabilities 81,389  50,576  47,816  37,282  34,995 
    Working capital (2,243) (12,207) (11,824) (5,254) (11,799)
    Operating revenues 160,546  163,786  146,801  132,447  128,752 
    Ratio
    Working capital turnover1 – – – – –
    Benchmarks
    Working Capital Turnover, Competitors
    Verizon Communications Inc. – – – 81.51 2.74
    Working Capital Turnover, Sector
    Fixed Line Telecommunications – – – – 7.76

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Working capital turnover = Operating revenues ÷ Working capital
    = 160,546 ÷ -2,243 = –

    Ratio Description The company
    Working capital turnover An activity ratio calculated as revenue divided by working capital.

    Average Inventory Processing Period

    AT&T Inc., average inventory processing period calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data
    Inventory turnover 34.78 37.71 16.62 31.36 44.83
    Ratio (no. of days)
    Average inventory processing period1 10 10 22 12 8
    Benchmarks (no. of days)
    Average Inventory Processing Period, Competitors
    Verizon Communications Inc. 7 9 9 8 8
    Average Inventory Processing Period, Sector
    Fixed Line Telecommunications 9 9 16 10 8

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Average inventory processing period = 365 ÷ Inventory turnover
    = 365 ÷ 34.78 = 10

    Ratio Description The company
    Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

    Average Receivable Collection Period

    AT&T Inc., average receivable collection period calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data
    Receivables turnover 9.72 9.75 8.88 9.12 9.97
    Ratio (no. of days)
    Average receivable collection period1 38 37 41 40 37
    Benchmarks (no. of days)
    Average Receivable Collection Period, Competitors
    Verizon Communications Inc. 68 51 37 40 38
    Average Receivable Collection Period, Sector
    Fixed Line Telecommunications 51 43 39 40 37

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Average receivable collection period = 365 ÷ Receivables turnover
    = 365 ÷ 9.72 = 38

    Ratio Description The company
    Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. AT&T Inc.'s average receivable collection period improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

    Operating Cycle

    AT&T Inc., operating cycle calculation, comparison to benchmarks

    No. of days

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data
    Average inventory processing period 10 10 22 12 8
    Average receivable collection period 38 37 41 40 37
    Ratio
    Operating cycle1 48 47 63 52 45
    Benchmarks
    Operating Cycle, Competitors
    Verizon Communications Inc. 75 60 46 48 46
    Operating Cycle, Sector
    Fixed Line Telecommunications 60 52 55 50 45

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Operating cycle = Average inventory processing period + Average receivable collection period
    = 10 + 38 = 48

    Ratio Description The company
    Operating cycle Equal to average inventory processing period plus average receivables collection period. AT&T Inc.'s operating cycle improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

    Average Payables Payment Period

    AT&T Inc., average payables payment period calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data
    Payables turnover 3.17 3.49 3.19 4.05 4.45
    Ratio (no. of days)
    Average payables payment period1 115 105 115 90 82
    Benchmarks (no. of days)
    Average Payables Payment Period, Competitors
    Verizon Communications Inc. 50 50 44 41 40
    Average Payables Payment Period, Sector
    Fixed Line Telecommunications 89 83 84 68 63

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Average payables payment period = 365 ÷ Payables turnover
    = 365 ÷ 3.17 = 115

    Ratio Description The company
    Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

    Cash Conversion Cycle

    AT&T Inc., cash conversion cycle calculation, comparison to benchmarks

    No. of days

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data
    Average inventory processing period 10 10 22 12 8
    Average receivable collection period 38 37 41 40 37
    Average payables payment period 115 105 115 90 82
    Ratio
    Cash conversion cycle1 -67 -58 -52 -38 -37
    Benchmarks
    Cash Conversion Cycle, Competitors
    Verizon Communications Inc. 25 10 2 7 6
    Cash Conversion Cycle, Sector
    Fixed Line Telecommunications -29 -31 -29 -18 -18

    Source: Based on data from AT&T Inc. Annual Reports

    2017 Calculations

    1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
    = 10 + 38 – 115 = -67

    Ratio Description The company
    Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. AT&T Inc.'s cash conversion cycle improved from 2015 to 2016 and from 2016 to 2017.