Microsoft Excel LibreOffice Calc

AT&T Inc. (NYSE:T)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

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

Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Turnover Ratios
Inventory turnover 29.38 28.66 34.78 37.71 16.62
Receivables turnover 8.00 6.45 9.72 9.75 8.88
Payables turnover 2.84 2.94 3.17 3.49 3.19
Working capital turnover — — — — —
Average No. Days
Average inventory processing period 12 13 10 10 22
Add: Average receivable collection period 46 57 38 37 41
Operating cycle 58 70 48 47 63
Less: Average payables payment period 129 124 115 105 115
Cash conversion cycle -71 -54 -67 -58 -52

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. AT&T Inc.’s inventory turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. AT&T Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. AT&T Inc.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital.
Short-term activity 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. AT&T Inc.’s number of days of inventory outstanding deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. AT&T Inc.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. AT&T Inc.’s operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
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. AT&T Inc.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019.
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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of revenues 84,141  79,419  77,379  76,884  67,046 
Equipment inventories 2,864  2,771  2,225  2,039  4,033 
Short-term Activity Ratio
Inventory turnover1 29.38 28.66 34.78 37.71 16.62
Benchmarks
Inventory Turnover, Competitors2
Verizon Communications Inc. 38.49 41.55 49.86 42.78 41.98
Inventory Turnover, Sector
Fixed Line Telecommunications 32.40 32.85 39.56 39.59 22.63
Inventory Turnover, Industry
Telecommunications 29.98 29.53 30.39 33.29 20.44

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Inventory turnover = Cost of revenues ÷ Equipment inventories
= 84,141 ÷ 2,864 = 29.38

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. AT&T Inc.’s inventory turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Operating revenues 181,193  170,756  160,546  163,786  146,801 
Accounts receivable, net of allowances for doubtful accounts 22,636  26,472  16,522  16,794  16,532 
Short-term Activity Ratio
Receivables turnover1 8.00 6.45 9.72 9.75 8.88
Benchmarks
Receivables Turnover, Competitors2
Verizon Communications Inc. 5.19 5.21 5.36 7.19 9.78
Receivables Turnover, Sector
Fixed Line Telecommunications 6.51 5.85 7.16 8.45 9.28
Receivables Turnover, Industry
Telecommunications 7.17 6.47 7.80 9.03 9.77

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Receivables turnover = Operating revenues ÷ Accounts receivable, net of allowances for doubtful accounts
= 181,193 ÷ 22,636 = 8.00

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. AT&T Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of revenues 84,141  79,419  77,379  76,884  67,046 
Accounts payable 29,640  27,018  24,439  22,027  21,047 
Short-term Activity Ratio
Payables turnover1 2.84 2.94 3.17 3.49 3.19
Benchmarks
Payables Turnover, Competitors2
Verizon Communications Inc. 7.08 7.68 7.30 7.26 8.22
Payables Turnover, Sector
Fixed Line Telecommunications 3.72 3.94 4.09 4.41 4.36
Payables Turnover, Industry
Telecommunications 3.78 3.86 3.89 4.23 4.01

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 84,141 ÷ 29,640 = 2.84

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. AT&T Inc.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current assets 54,761  51,427  79,146  38,369  35,992 
Less: Current liabilities 68,911  64,420  81,389  50,576  47,816 
Working capital (14,150) (12,993) (2,243) (12,207) (11,824)
 
Operating revenues 181,193  170,756  160,546  163,786  146,801 
Short-term Activity Ratio
Working capital turnover1 — — — — —
Benchmarks
Working Capital Turnover, Competitors2
Verizon Communications Inc. — — — — —
Working Capital Turnover, Sector
Fixed Line Telecommunications — — — — —
Working Capital Turnover, Industry
Telecommunications — — — — —

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Working capital turnover = Operating revenues ÷ Working capital
= 181,193 ÷ -14,150 = —

2 Click competitor name to see calculations.

Short-term activity 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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Inventory turnover 29.38 28.66 34.78 37.71 16.62
Short-term Activity Ratio (no. days)
Average inventory processing period1 12 13 10 10 22
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Verizon Communications Inc. 9 9 7 9 9
Average Inventory Processing Period, Sector
Fixed Line Telecommunications 11 11 9 9 16
Average Inventory Processing Period, Industry
Telecommunications 12 12 12 11 18

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 29.38 = 12

2 Click competitor name to see calculations.

Short-term activity 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. AT&T Inc.’s number of days of inventory outstanding deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Receivables turnover 8.00 6.45 9.72 9.75 8.88
Short-term Activity Ratio (no. days)
Average receivable collection period1 46 57 38 37 41
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Verizon Communications Inc. 70 70 68 51 37
Average Receivable Collection Period, Sector
Fixed Line Telecommunications 56 62 51 43 39
Average Receivable Collection Period, Industry
Telecommunications 51 56 47 40 37

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.00 = 46

2 Click competitor name to see calculations.

Short-term activity 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 number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Operating Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 12 13 10 10 22
Average receivable collection period 46 57 38 37 41
Short-term Activity Ratio
Operating cycle1 58 70 48 47 63
Benchmarks
Operating Cycle, Competitors2
Verizon Communications Inc. 79 79 75 60 46
Operating Cycle, Sector
Fixed Line Telecommunications 67 73 60 52 55
Operating Cycle, Industry
Telecommunications 63 68 59 51 55

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 12 + 46 = 58

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. AT&T Inc.’s operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Payables turnover 2.84 2.94 3.17 3.49 3.19
Short-term Activity Ratio (no. days)
Average payables payment period1 129 124 115 105 115
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Verizon Communications Inc. 52 48 50 50 44
Average Payables Payment Period, Sector
Fixed Line Telecommunications 98 93 89 83 84
Average Payables Payment Period, Industry
Telecommunications 97 95 94 86 91

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.84 = 129

2 Click competitor name to see calculations.

Short-term activity 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. AT&T Inc.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 12 13 10 10 22
Average receivable collection period 46 57 38 37 41
Average payables payment period 129 124 115 105 115
Short-term Activity Ratio
Cash conversion cycle1 -71 -54 -67 -58 -52
Benchmarks
Cash Conversion Cycle, Competitors2
Verizon Communications Inc. 27 31 25 10 2
Cash Conversion Cycle, Sector
Fixed Line Telecommunications -31 -20 -29 -31 -29
Cash Conversion Cycle, Industry
Telecommunications -34 -27 -35 -35 -36

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 12 + 46 – 129 = -71

2 Click competitor name to see calculations.

Short-term activity 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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.