Microsoft Excel LibreOffice Calc

AT&T Inc. (T)

Short-term (Operating) Activity Analysis

Difficulty: Beginner

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, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Turnover Ratios
Inventory turnover 28.66 34.78 37.71 16.62 31.36
Receivables turnover 6.45 9.72 9.75 8.88 9.12
Payables turnover 2.94 3.17 3.49 3.19 4.05
Working capital turnover — — — — —
Average No. of Days
Average inventory processing period 13 10 10 22 12
Add: Average receivable collection period 57 38 37 41 40
Operating cycle 70 48 47 63 52
Less: Average payables payment period 124 115 105 115 90
Cash conversion cycle -54 -67 -58 -52 -38

Based on: 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), 10-K (filing date: 2015-02-20).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. AT&T Inc.’s inventory turnover deteriorated from 2016 to 2017 and from 2017 to 2018.
Receivables turnover An activity ratio equal to revenue divided by receivables. AT&T Inc.’s receivables turnover deteriorated from 2016 to 2017 and from 2017 to 2018.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. AT&T Inc.’s payables turnover declined from 2016 to 2017 and from 2017 to 2018.
Working capital turnover An activity ratio calculated as revenue divided by working capital.
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 An activity ratio equal to the number of days in the period divided by receivables turnover. AT&T Inc.’s average receivable collection period deteriorated from 2016 to 2017 and from 2017 to 2018.
Operating cycle Equal to average inventory processing period plus average receivables collection period. AT&T Inc.’s operating cycle deteriorated from 2016 to 2017 and from 2017 to 2018.
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 average payables payment period increased from 2016 to 2017 and from 2017 to 2018.
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 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cost of revenues 79,419  77,379  76,884  67,046  60,611 
Equipment inventories 2,771  2,225  2,039  4,033  1,933 
Ratio
Inventory turnover1 28.66 34.78 37.71 16.62 31.36
Benchmarks
Inventory Turnover, Competitors2
Verizon Communications Inc. 41.55 49.86 42.78 41.98 43.31
Inventory Turnover, Sector
Fixed Line Telecommunications 32.85 39.56 39.59 22.63 35.82
Inventory Turnover, Industry
Telecommunications 29.53 30.39 33.29 20.44 30.20

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Inventory turnover = Cost of revenues ÷ Equipment inventories
= 79,419 ÷ 2,771 = 28.66

2 Click competitor name to see calculations.

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. AT&T Inc.’s inventory turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Operating revenues 170,756  160,546  163,786  146,801  132,447 
Accounts receivable, net of allowances for doubtful accounts 26,472  16,522  16,794  16,532  14,527 
Ratio
Receivables turnover1 6.45 9.72 9.75 8.88 9.12
Benchmarks
Receivables Turnover, Competitors2
Verizon Communications Inc. 5.21 5.36 7.19 9.78 9.08
Receivables Turnover, Sector
Fixed Line Telecommunications 5.85 7.16 8.45 9.28 9.10
Receivables Turnover, Industry
Telecommunications 6.47 7.80 9.03 9.77 9.51

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Receivables turnover = Operating revenues ÷ Accounts receivable, net of allowances for doubtful accounts
= 170,756 ÷ 26,472 = 6.45

2 Click competitor name to see calculations.

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. AT&T Inc.’s receivables turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cost of revenues 79,419  77,379  76,884  67,046  60,611 
Accounts payable 27,018  24,439  22,027  21,047  14,984 
Ratio
Payables turnover1 2.94 3.17 3.49 3.19 4.05
Benchmarks
Payables Turnover, Competitors2
Verizon Communications Inc. 7.68 7.30 7.26 8.22 8.92
Payables Turnover, Sector
Fixed Line Telecommunications 3.94 4.09 4.41 4.36 5.37
Payables Turnover, Industry
Telecommunications 3.86 3.89 4.23 4.01 4.86

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 79,419 ÷ 27,018 = 2.94

2 Click competitor name to see calculations.

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. AT&T Inc.’s payables turnover declined from 2016 to 2017 and from 2017 to 2018.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Current assets 51,427  79,146  38,369  35,992  32,028 
Less: Current liabilities 64,420  81,389  50,576  47,816  37,282 
Working capital (12,993) (2,243) (12,207) (11,824) (5,254)
Operating revenues 170,756  160,546  163,786  146,801  132,447 
Ratio
Working capital turnover1 — — — — —
Benchmarks
Working Capital Turnover, Competitors2
Verizon Communications Inc. — — — — 81.51
Working Capital Turnover, Sector
Fixed Line Telecommunications — — — — —
Working Capital Turnover, Industry
Telecommunications — — — — 191.07

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Working capital turnover = Operating revenues ÷ Working capital
= 170,756 ÷ -12,993 = —

2 Click competitor name to see calculations.

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, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Inventory turnover 28.66 34.78 37.71 16.62 31.36
Ratio (no. of days)
Average inventory processing period1 13 10 10 22 12
Benchmarks (no. of days)
Average Inventory Processing Period, Competitors2
Verizon Communications Inc. 9 7 9 9 8
Average Inventory Processing Period, Sector
Fixed Line Telecommunications 11 9 9 16 10
Average Inventory Processing Period, Industry
Telecommunications 12 12 11 18 12

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 28.66 = 13

2 Click competitor name to see calculations.

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, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Receivables turnover 6.45 9.72 9.75 8.88 9.12
Ratio (no. of days)
Average receivable collection period1 57 38 37 41 40
Benchmarks (no. of days)
Average Receivable Collection Period, Competitors2
Verizon Communications Inc. 70 68 51 37 40
Average Receivable Collection Period, Sector
Fixed Line Telecommunications 62 51 43 39 40
Average Receivable Collection Period, Industry
Telecommunications 56 47 40 37 38

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.45 = 57

2 Click competitor name to see calculations.

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 deteriorated from 2016 to 2017 and from 2017 to 2018.

Operating Cycle

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

No. of days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 13 10 10 22 12
Average receivable collection period 57 38 37 41 40
Ratio
Operating cycle1 70 48 47 63 52
Benchmarks
Operating Cycle, Competitors2
Verizon Communications Inc. 79 75 60 46 48
Operating Cycle, Sector
Fixed Line Telecommunications 73 60 52 55 50
Operating Cycle, Industry
Telecommunications 68 59 51 55 50

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 13 + 57 = 70

2 Click competitor name to see calculations.

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 2016 to 2017 and from 2017 to 2018.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Payables turnover 2.94 3.17 3.49 3.19 4.05
Ratio (no. of days)
Average payables payment period1 124 115 105 115 90
Benchmarks (no. of days)
Average Payables Payment Period, Competitors2
Verizon Communications Inc. 48 50 50 44 41
Average Payables Payment Period, Sector
Fixed Line Telecommunications 93 89 83 84 68
Average Payables Payment Period, Industry
Telecommunications 95 94 86 91 75

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.94 = 124

2 Click competitor name to see calculations.

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 average payables payment period increased from 2016 to 2017 and from 2017 to 2018.

Cash Conversion Cycle

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

No. of days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 13 10 10 22 12
Average receivable collection period 57 38 37 41 40
Average payables payment period 124 115 105 115 90
Ratio
Cash conversion cycle1 -54 -67 -58 -52 -38
Benchmarks
Cash Conversion Cycle, Competitors2
Verizon Communications Inc. 31 25 10 2 7
Cash Conversion Cycle, Sector
Fixed Line Telecommunications -20 -29 -31 -29 -18
Cash Conversion Cycle, Industry
Telecommunications -27 -35 -35 -36 -25

Based on: 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), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 13 + 57 – 124 = -54

2 Click competitor name to see calculations.

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 2016 to 2017 but then deteriorated significantly from 2017 to 2018.