AT&T (T) Interest Coverage

: 3.40 (As of Dec. 2023)

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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 by its Interest Expense. AT&T's Operating Income for the three months ended in Dec. 2023 was $5,860 Mil. AT&T's Interest Expense for the three months ended in Dec. 2023 was $-1,726 Mil. AT&T's interest coverage for the quarter that ended in Dec. 2023 was 3.40. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for AT&T's Interest Coverage or its related term are showing as below:

T' s Interest Coverage Range Over the Past 10 Years
Min: 3.19 Med: 3.72 Max: 6.02
Current: 3.68

T's Interest Coverage is ranked worse than
58.13% of 289 companies
in the Telecommunication Services industry
Industry Median: 4.65 vs T: 3.68

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

AT&T Interest Coverage Historical Data

The historical data trend for AT&T's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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AT&T Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.49

3.19

3.89

3.75

3.68

AT&T Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																3.63	3.51	3.98	3.84	3.40

Competitive Comparison

For the Telecom Services subindustry, AT&T's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where AT&T's Interest Coverage falls into.

AT&T Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

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

AT&T's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, AT&T's Interest Expense was $-6,704 Mil. Its Operating Income was $24,654 Mil. And its Long-Term Debt & Capital Lease Obligation was $145,422 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	24654	/	-6704
	=	3.68

AT&T's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, AT&T's Interest Expense was $-1,726 Mil. Its Operating Income was $5,860 Mil. And its Long-Term Debt & Capital Lease Obligation was $145,422 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5860	/	-1726
	=	3.40

The higher the ratio, the stronger the company's Financial Strength is.

AT&T (NYSE:T) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

AT&T Interest Coverage Related Terms

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

AT&T (T) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » AT&T Inc (NYSE:T) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

208 S. Akard Street, Dallas, TX, USA, 75202

Website

https://www.att.com

The wireless business contributes about two thirds of AT&T's revenue following the spinoff of Warner Media. The firm is the third-largest U.S. wireless carrier, connecting 70 million postpaid and 18 million prepaid phone customers. Fixed-line enterprise services, which account for about 18% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access service. AT&T also has a sizable presence in Mexico, serving 22 million customers, but this business only accounts for 3% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.

Executives

Sanders S Sabrina	officer: SVP-ChiefActngOfcr&Controller	208 S. AKARD ST., 29TH FLOOR, DALLAS TX 75202
Debra L. Dial	officer: SVP-ChiefActngOfcr&Controller	208 S. AKARD, 29TH FLOOR, DALLAS TX 75202
Jeremy Alan Legg	officer: Chief Technology Officer	208 S. AKARD STREET, DALLAS TX 75202
Kenny Kellyn Smith	officer: Chief Marketing & Growth Ofcr	208 S. AKARD ST, 29TH FLOOR, DALLAS TX 75202
Edward W Gillespie	officer: SrEVP-Ext & Legal Affairs	208 S. AKARD, DALLAS TX 75202
Angela Santone	officer: Sr. Exec VP-Human Resources	208 S. AKARD ST, DALLAS TX 75202
Jeffery S. Mcelfresh	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, 29TH FLOOR, DALLAS TX 75202
David S. Huntley	officer: SEVP&Chief Compliance Officer	208 S. AKARD, ROOM 2900;07, DALLAS TX 75202
Lori M Lee	officer: CEO-AT&T LatAm&GlobalMktgOfcr	208 S. AKARD ST., 29TH FLOOR, DALLAS TX 75202
Pascal Desroches	officer: Sr. Exec VP and CFO	AT&T INC., 208 S AKARD STREET, DALLAS TX 75202
Stephen J Luczo	director
Luis A Ubinas	director	209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065-1175
John T Stankey	officer: Sr. Exec. VP and CIO	208 S. AKARD ST., 29TH FLOOR, DALLAS TX 75202
Jason Kilar	officer: CEO, Warner Media, LLC	208 S. AKARD ST, DALLAS TX 75202