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AT&T Financial Strength

: 4 (As of Jun. 2022)
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AT&T has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

AT&T's Interest Coverage for the quarter that ended in Jun. 2022 was 3.72. AT&T's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.31. As of today, AT&T's Altman Z-Score is 0.84.


Competitive Comparison

For the Telecom Services subindustry, AT&T's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

AT&T Financial Strength Distribution

For the Telecommunication Services industry and Communication Services sector, AT&T's Financial Strength distribution charts can be found below:

* The bar in red indicates where AT&T's Financial Strength falls into.



AT&T Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

AT&T's Interest Expense for the months ended in Jun. 2022 was $-1,502 Mil. Its Operating Income for the months ended in Jun. 2022 was $5,587 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $148,496 Mil.

AT&T's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*5587/-1502
=3.72

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

AT&T's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6829 + 148496) / 118572
=1.31

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

AT&T has a Z-score of 0.84, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.84 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


AT&T  (NYSE:T) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

AT&T has the Financial Strength Rank of 4.


AT&T Financial Strength Related Terms

Thank you for viewing the detailed overview of AT&T's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


AT&T Business Description

AT&T logo
Address
208 S. Akard Street, Dallas, TX, USA, 75202
Wireless is AT&T's largest business,contributing about 40% of revenue. The firm is the third- largest U.S. wireless carrier, connecting 66 million postpaid and 17 million prepaid phone customers. WarnerMedia contributes a bit less than 20% of revenue with media assets that include HBO, the Turner cable networks, and the Warner Brothers studios. AT&T plans to spin Warner off and merge it with Discovery to create a new stand-alone media firm. The firm recently sold a 30% stake in its traditional television business, which serves 15 million customers and generates about 17% of sales. This business will be removed from AT&T's financials going forward. Fixed-line telecom services provided to businesses and consumers account for about 20% of revenue, serving about 15 million broadband customers.
Executives
Legg Jeremy Alan officer: Chief Technology Officer 208 S. AKARD STREET DALLAS TX 75202
Smith Kenny Kellyn officer: Chief Marketing & Growth Ofcr 4511 CATHEDRAL AVE NW WASHINGTON DC 20016
Gillespie Edward W officer: SrEVP-Ext & Legal Affairs 208 S. AKARD DALLAS TX 75202
Santone Angela officer: Sr. Exec VP-Human Resources 208 S. AKARD ST DALLAS TX 75202
Mcelfresh Jeffery S. officer: CEO, AT&T Communications, LLC 208 S. AKARD 29TH FLOOR DALLAS TX 75202
Mcatee David R Ii officer: Sr. Exec. VP and Gen. Counsel 208 S. AKARD ROOM 3023 DALLAS TX 75202
Huntley David S. officer: SEVP&Chief Compliance Officer 208 S. AKARD ROOM 3023 DALLAS TX 75202
Lee Lori M officer: CEO-AT&T LatAm&GlobalMktgOfcr 208 S. AKARD ST., ROOM 3025 DALLAS TX 75202
Desroches Pascal officer: Sr. Exec VP and CFO TIME WARNER INC. ONE TIME WARNER CENTER NEW YORK NY 10019
Ubinas Luis A director 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065-1175
Kilar Jason officer: CEO, Warner Media, LLC 208 S. AKARD ST DALLAS TX 75202
Luczo Stephen J director
Lee Debra L director C/O BLACK ENTERTAINMENT 1 BET PLZ. 1900W PLACE N.W. WASHINGTON DC 20018
Lesser Brian D officer: CEO-AT&T Advertising&Analytics 208 S. AKARD DALLAS TX 75202
Arroyo F. Thaddeus officer: CEO - Bus. Solutions and Int'l 208 S. AKARD DALLAS TX 75202

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