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AT&T Free Cash Flow

: $14,337 Mil (TTM As of Jun. 2022)
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AT&T's total free cash flow for the months ended in Jun. 2022 was $1,179 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Jun. 2022 was $14,337 Mil.

AT&T's Free Cash Flow per Share for the months ended in Jun. 2022 was $0.16. Its free cash flow per share for the trailing twelve months (TTM) ended in Jun. 2022 was $1.98.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of AT&T was -50.60% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 2.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 7.10% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 4.30% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, AT&T's highest 3-Year average Free Cash Flow per Share Growth Rate was 107.80% per year. The lowest was -29.90% per year. And the median was 2.60% per year.


AT&T Free Cash Flow Historical Data

The historical data trend for AT&T's Free Cash Flow can be seen below:

* 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.

* Premium members only.

AT&T Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Free Cash Flow
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17,363.00 22,351.00 29,033.00 27,455.00 25,430.00

AT&T Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Free Cash Flow Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7,362.00 4,751.00 7,423.00 984.00 1,179.00

AT&T Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

AT&T's Free Cash Flow for the fiscal year that ended in Dec. 2021 is calculated as

Free Cash Flow (A: Dec. 2021 )=Cash Flow from Operations+Capital Expenditure
=41957+-16527
=25,430

AT&T's Free Cash Flow for the quarter that ended in Jun. 2022 is calculated as

Free Cash Flow (Q: Jun. 2022 )=Cash Flow from Operations+Capital Expenditure
=5907+-4728
=1,179

Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $14,337 Mil.

* 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) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Jun22, AT&T's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Jun22)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=3.24780952/20.96+-0.0501
=10.49 %

* 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.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


AT&T Free Cash Flow Related Terms

Thank you for viewing the detailed overview of AT&T's Free Cash Flow 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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