Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The analysis of short-term operating activity reveals a general trend toward improved operational efficiency over the observed period from early 2022 through mid-2026. The most significant improvement is observed in the acceleration of the cash conversion process, as evidenced by a consistent reduction in the overall operating cycle.
- Inventory Management
- Inventory turnover exhibits notable volatility, fluctuating between a low of 14.50 in September 2022 and a peak of 27.18 in June 2024. This volatility is mirrored in the average inventory processing period, which ranged from 13 to 25 days. While there were periods of relative inefficiency in late 2022, the processing period has stabilized near 17 days in the most recent quarters, suggesting a normalized approach to inventory throughput.
- Receivables Management
- A strong and consistent improvement in receivables management is evident. The receivables turnover ratio increased steadily from 8.98 in March 2022 to a peak of 15.18 in March 2026. Consequently, the average receivable collection period was reduced significantly from 41 days to 24 days. This indicates a substantial increase in the efficiency of credit collection and a faster conversion of receivables into cash.
- Operating Cycle and Total Efficiency
- The operating cycle, which combines the time required to process inventory and collect receivables, demonstrates a clear downward trajectory. The cycle decreased from a high of 57 days in 2022 to 41 days by June 2026. This contraction suggests that the organization has successfully streamlined its short-term operating activities, reducing the time capital is tied up in the operating process. Working capital turnover data is insufficient for a trend analysis due to limited availability, though a single recording of 177.07 was noted in September 2025.
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Turnover Ratios
Average No. Days
Inventory Turnover
AT&T Inc., inventory turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cost of revenues | 12,047) | 12,566) | 14,818) | 11,819) | 12,150) | 12,033) | 14,195) | 11,630) | 11,442) | 11,954) | 13,911) | 12,054) | 11,827) | 12,331) | 13,571) | 12,201) | 12,341) | 12,735) | ||||||
| Inventories | 2,368) | 2,451) | 2,420) | 2,886) | 2,357) | 2,593) | 2,270) | 2,529) | 1,816) | 2,127) | 2,177) | 2,520) | 2,348) | 2,791) | 3,123) | 3,935) | 3,241) | 3,153) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Inventory turnover1 | 21.64 | 20.95 | 21.00 | 17.39 | 21.22 | 19.01 | 21.68 | 19.35 | 27.18 | 23.39 | 23.02 | 19.76 | 21.26 | 18.07 | 16.28 | 14.50 | 19.34 | 22.66 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||
| T-Mobile US Inc. | 15.91 | 14.70 | 13.63 | 13.20 | 18.10 | 15.47 | 18.45 | 16.36 | 22.27 | 19.48 | 17.99 | 18.08 | 23.32 | 19.63 | 19.22 | 16.91 | 16.93 | 13.90 | ||||||
| Verizon Communications Inc. | 27.79 | 24.73 | 23.25 | 20.67 | 26.06 | 24.71 | 24.08 | 21.31 | 29.31 | 26.13 | 26.68 | 24.76 | 29.87 | 24.48 | 24.76 | 18.63 | 15.71 | 15.61 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Inventory turnover
= (Cost of revenuesQ2 2026
+ Cost of revenuesQ1 2026
+ Cost of revenuesQ4 2025
+ Cost of revenuesQ3 2025)
÷ Inventories
= (12,047 + 12,566 + 14,818 + 11,819)
÷ 2,368 = 21.64
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals significant fluctuations in inventory management efficiency from March 2022 through June 2026. The inventory turnover ratio exhibits a volatile pattern, influenced by both seasonal increases in the cost of revenues and strategic adjustments in inventory holdings.
- Inventory Turnover Volatility
- The inventory turnover ratio experienced a notable decline in the first three quarters of 2022, reaching a period low of 14.50 by September 30, 2022. This decline was primarily driven by a surge in inventory levels to a peak of 3,935 million US dollars. Following this trough, the ratio trended upward, reaching its maximum efficiency of 27.18 in June 2024, which coincided with the lowest recorded inventory level of 1,816 million US dollars.
- Cost of Revenue Patterns
- A consistent seasonal pattern is observed in the cost of revenues, with recurring peaks occurring every December. These spikes generally range between 13,571 million and 14,818 million US dollars, reflecting increased operational costs toward the end of the calendar year. Despite these recurring increases in costs, the inventory turnover ratio typically stabilizes or recovers in the subsequent quarters.
- Operational Efficiency and Stabilization
- From late 2024 through June 2026, a period of relative stabilization is evident. The turnover ratio largely fluctuated between 17.39 and 21.68, suggesting a more consistent alignment between inventory procurement and the cost of goods sold. The relationship between inventory levels and turnover remained inversely correlated, where reductions in held inventory typically led to immediate increases in the turnover ratio.
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Receivables Turnover
AT&T Inc., receivables turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Operating revenues | 31,558) | 31,506) | 33,466) | 30,709) | 30,847) | 30,626) | 32,298) | 30,213) | 29,797) | 30,028) | 32,022) | 30,350) | 29,917) | 30,139) | 31,343) | 30,043) | 29,643) | 29,712) | ||||||
| Accounts receivable, net of related allowances for credit loss | 8,521) | 8,335) | 8,843) | 8,936) | 8,844) | 9,228) | 9,638) | 9,068) | 9,686) | 9,577) | 10,289) | 8,962) | 9,304) | 10,214) | 11,466) | 11,384) | 11,377) | 17,218) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Receivables turnover1 | 14.93 | 15.18 | 14.21 | 13.93 | 14.02 | 13.32 | 12.69 | 13.46 | 12.62 | 12.77 | 11.90 | 13.59 | 13.05 | 11.86 | 10.53 | 11.45 | 12.33 | 8.98 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||
| T-Mobile US Inc. | 17.57 | 18.60 | 18.12 | 16.89 | 18.28 | 18.83 | 19.04 | 18.67 | 17.33 | 18.46 | 16.74 | 17.41 | 17.11 | 18.11 | 17.90 | 18.52 | 17.96 | 20.04 | ||||||
| Verizon Communications Inc. | 5.24 | 5.22 | 5.10 | 5.30 | 5.21 | 5.23 | 5.16 | 5.17 | 5.24 | 5.29 | 5.34 | 5.68 | 5.82 | 5.96 | 5.58 | 5.73 | 5.62 | 5.69 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Receivables turnover
= (Operating revenuesQ2 2026
+ Operating revenuesQ1 2026
+ Operating revenuesQ4 2025
+ Operating revenuesQ3 2025)
÷ Accounts receivable, net of related allowances for credit loss
= (31,558 + 31,506 + 33,466 + 30,709)
÷ 8,521 = 14.93
2 Click competitor name to see calculations.
An analysis of the operating activity ratios indicates a significant improvement in receivables management and collection efficiency over the observed period. The overall trend reflects a transition toward a more streamlined collection process, characterized by a substantial reduction in the average accounts receivable balance relative to operating revenues.
- Operating Revenues
- Revenues remained relatively stable with a slight upward trajectory, generally fluctuating between approximately 29.6 billion and 33.5 billion US dollars. A consistent seasonal pattern is observable, with peak revenues occurring in the fourth quarter of each fiscal year, reaching high points in December 2022, 2023, 2024, and 2025.
- Accounts Receivable Management
- A sharp contraction in net accounts receivable occurred between March 31, 2022, and June 30, 2022, where the balance dropped from 17.2 billion to 11.4 billion US dollars. Following this initial correction, a gradual downward trend continued, with the balance reaching a period low of 8.3 billion US dollars by March 31, 2026. This persistent reduction in the receivable balance suggests more aggressive collection strategies or a change in credit terms.
- Receivables Turnover Efficiency
- The receivables turnover ratio exhibited a strong positive trend, increasing from 8.98 in March 2022 to a peak of 15.18 in March 2026. This upward movement indicates that the company is converting its receivables into cash more rapidly. The significant jump in the ratio during the second quarter of 2022 correlates with the abrupt decline in the accounts receivable balance, marking a pivot toward higher operational efficiency. By the end of the period, the higher turnover ratio suggests a reduced reliance on credit sales or an optimized billing and collection cycle, thereby enhancing short-term liquidity.
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Working Capital Turnover
AT&T Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 51,834) | 46,282) | 48,732) | 54,579) | 39,306) | 33,780) | 31,168) | 29,799) | 29,868) | 30,445) | 36,458) | 35,620) | 36,672) | 29,903) | 33,108) | 32,295) | 34,485) | 76,856) | ||||||
| Less: Current liabilities | 53,382) | 50,421) | 53,780) | 53,876) | 48,565) | 47,999) | 46,872) | 40,658) | 42,429) | 44,834) | 51,127) | 51,684) | 54,159) | 58,150) | 56,173) | 52,257) | 49,189) | 82,494) | ||||||
| Working capital | (1,548) | (4,139) | (5,048) | 703) | (9,259) | (14,219) | (15,704) | (10,859) | (12,561) | (14,389) | (14,669) | (16,064) | (17,487) | (28,247) | (23,065) | (19,962) | (14,704) | (5,638) | ||||||
| Operating revenues | 31,558) | 31,506) | 33,466) | 30,709) | 30,847) | 30,626) | 32,298) | 30,213) | 29,797) | 30,028) | 32,022) | 30,350) | 29,917) | 30,139) | 31,343) | 30,043) | 29,643) | 29,712) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | 177.07 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
| T-Mobile US Inc. | — | 51.03 | — | — | 18.00 | 21.69 | — | 50.77 | — | — | — | — | — | — | — | — | — | — | ||||||
| Verizon Communications Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Working capital turnover
= (Operating revenuesQ2 2026
+ Operating revenuesQ1 2026
+ Operating revenuesQ4 2025
+ Operating revenuesQ3 2025)
÷ Working capital
= (31,558 + 31,506 + 33,466 + 30,709)
÷ -1,548 = —
2 Click competitor name to see calculations.
The financial data exhibits a period of significant volatility in working capital contrasted with highly stable operating revenues over the observed timeframe.
- Working Capital Dynamics
- A substantial increase in the working capital deficit is observed from March 2022 through March 2023, where the position deteriorated to a peak deficit of 28,247 million USD. Following this trough, a consistent recovery trend emerged, with the deficit narrowing steadily to 1,548 million USD by June 2026. A significant deviation occurred in September 2025, marking the only instance in the period where working capital transitioned to a positive value of 703 million USD.
- Operating Revenue Stability
- Operating revenues remained remarkably consistent, fluctuating within a narrow corridor between 29,643 million USD and 33,466 million USD. The absence of significant volatility in revenue suggests a stable top-line performance that remained decoupled from the fluctuations observed in the company's short-term liquidity and working capital positions.
- Working Capital Turnover Interpretation
- The working capital turnover ratio is unavailable for the majority of the period, as the negative working capital positions render the standard ratio calculation non-representative of operational efficiency. In September 2025, coinciding with the only positive working capital reading, the turnover ratio spiked to 177.07. This exceptionally high ratio indicates that the company generated a vast volume of revenue relative to a very small positive net working capital base, reflecting an extreme level of short-term asset efficiency for that specific quarter.
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Average Inventory Processing Period
AT&T Inc., average inventory processing period calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Inventory turnover | 21.64 | 20.95 | 21.00 | 17.39 | 21.22 | 19.01 | 21.68 | 19.35 | 27.18 | 23.39 | 23.02 | 19.76 | 21.26 | 18.07 | 16.28 | 14.50 | 19.34 | 22.66 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average inventory processing period1 | 17 | 17 | 17 | 21 | 17 | 19 | 17 | 19 | 13 | 16 | 16 | 18 | 17 | 20 | 22 | 25 | 19 | 16 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||
| T-Mobile US Inc. | 23 | 25 | 27 | 28 | 20 | 24 | 20 | 22 | 16 | 19 | 20 | 20 | 16 | 19 | 19 | 22 | 22 | 26 | ||||||
| Verizon Communications Inc. | 13 | 15 | 16 | 18 | 14 | 15 | 15 | 17 | 12 | 14 | 14 | 15 | 12 | 15 | 15 | 20 | 23 | 23 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 21.64 = 17
2 Click competitor name to see calculations.
The analysis of inventory management efficiency reveals a period of initial volatility followed by a phase of optimization and eventual stabilization across the observed quarters.
- Inventory Turnover Trends
- The turnover ratio exhibited significant fluctuations between March 2022 and June 2026. A notable decline occurred during 2022, reaching a minimum of 14.50 by September 30, 2022. This was followed by a sustained recovery phase, culminating in a peak efficiency ratio of 27.18 on June 30, 2024. From the latter half of 2024 through June 2026, the ratio entered a period of relative stability, generally fluctuating between 17.39 and 21.64.
- Average Inventory Processing Period
- The inventory processing period demonstrates a consistent inverse correlation with the turnover ratio. The period peaked at 25 days in September 2022, representing the longest duration for inventory to be processed. A trend of increasing efficiency followed, with the processing period reaching its lowest point of 13 days on June 30, 2024. In the subsequent quarters leading into 2026, the processing period converged toward a consistent average of 17 days, indicating the establishment of a standardized operational cycle.
Overall, the operational data indicates that inventory management efficiency improved significantly following the third quarter of 2022. The most aggressive optimization of the inventory cycle occurred in the first half of 2024, after which the processing period stabilized, suggesting a balanced approach to inventory holdings and sales velocity.
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Average Receivable Collection Period
AT&T Inc., average receivable collection period calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Receivables turnover | 14.93 | 15.18 | 14.21 | 13.93 | 14.02 | 13.32 | 12.69 | 13.46 | 12.62 | 12.77 | 11.90 | 13.59 | 13.05 | 11.86 | 10.53 | 11.45 | 12.33 | 8.98 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average receivable collection period1 | 24 | 24 | 26 | 26 | 26 | 27 | 29 | 27 | 29 | 29 | 31 | 27 | 28 | 31 | 35 | 32 | 30 | 41 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||
| T-Mobile US Inc. | 21 | 20 | 20 | 22 | 20 | 19 | 19 | 20 | 21 | 20 | 22 | 21 | 21 | 20 | 20 | 20 | 20 | 18 | ||||||
| Verizon Communications Inc. | 70 | 70 | 72 | 69 | 70 | 70 | 71 | 71 | 70 | 69 | 68 | 64 | 63 | 61 | 65 | 64 | 65 | 64 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 14.93 = 24
2 Click competitor name to see calculations.
An analysis of short-term operating activity ratios from March 2022 through June 2026 reveals a consistent improvement in the efficiency of receivables management. There is a clear inverse correlation between the receivables turnover ratio and the average receivable collection period, indicating a strengthened ability to convert credit sales into cash over the observed timeframe.
- Receivables Turnover Trend
- The receivables turnover ratio exhibited a sustained upward trajectory, rising from 8.98 in March 2022 to a peak of 15.18 in March 2026, ending the period at 14.93 in June 2026. While some volatility is observed—specifically modest declines during the December quarters of 2022 and 2023—the overall trend reflects a significant increase in the frequency of receivable collection relative to revenue.
- Average Receivable Collection Period
- The average collection period demonstrates a marked decrease, falling from 41 days in March 2022 to 24 days by June 2026. A rapid improvement occurred in the first quarter of 2022, where the period dropped to 30 days. Following a phase of relative stability between 27 and 31 days throughout 2023 and 2024, the collection period entered a further decline in 2025, stabilizing at 24 days during the first half of 2026.
- Operational Efficiency Insights
- The reduction of the collection cycle by 17 days over the analyzed period suggests an optimization of credit and collection policies. The acceleration of the cash conversion process indicates lower liquidity risk and a more efficient utilization of working capital, as less capital remains tied up in outstanding customer invoices.
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Operating Cycle
AT&T Inc., operating cycle calculation (quarterly data)
No. days
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Average inventory processing period | 17 | 17 | 17 | 21 | 17 | 19 | 17 | 19 | 13 | 16 | 16 | 18 | 17 | 20 | 22 | 25 | 19 | 16 | ||||||
| Average receivable collection period | 24 | 24 | 26 | 26 | 26 | 27 | 29 | 27 | 29 | 29 | 31 | 27 | 28 | 31 | 35 | 32 | 30 | 41 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Operating cycle1 | 41 | 41 | 43 | 47 | 43 | 46 | 46 | 46 | 42 | 45 | 47 | 45 | 45 | 51 | 57 | 57 | 49 | 57 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||
| T-Mobile US Inc. | 44 | 45 | 47 | 50 | 40 | 43 | 39 | 42 | 37 | 39 | 42 | 41 | 37 | 39 | 39 | 42 | 42 | 44 | ||||||
| Verizon Communications Inc. | 83 | 85 | 88 | 87 | 84 | 85 | 86 | 88 | 82 | 83 | 82 | 79 | 75 | 76 | 80 | 84 | 88 | 87 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 17 + 24 = 41
2 Click competitor name to see calculations.
The analysis of the operating cycle reveals a consistent trend toward improved operational efficiency over the period from March 2022 to June 2026. The total duration required to convert inventory and receivables into cash has contracted, reflecting more streamlined working capital management and enhanced liquidity.
- Average Inventory Processing Period
- Inventory turnover remained relatively stable throughout the observed period, despite initial volatility in 2022 where a peak of 25 days was recorded in September. Following this peak, the processing period generally fluctuated between 13 and 21 days. By June 2026, the period stabilized at 17 days, indicating a consistent and controlled approach to managing inventory levels relative to sales.
- Average Receivable Collection Period
- A pronounced downward trend is observed in the collection of receivables. The period began at 41 days in March 2022 and steadily declined to 24 days by June 2026. This significant reduction suggests a strengthening of credit collection policies and a more efficient conversion of accounts receivable into cash, reducing the company's reliance on short-term financing to cover operating costs.
- Operating Cycle
- The overall operating cycle experienced a net reduction from 57 days in early 2022 to 41 days by mid-2026. This compression is primarily driven by the gains in the receivable collection period, as the inventory processing period showed no long-term directional shift. The shortening of the operating cycle indicates a more agile movement of assets through the operational phase, thereby optimizing the cash conversion process.
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