Stock Analysis on Net
Stock Analysis on Net

AT&T Inc. (NYSE:T)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

AT&T Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 2,280 579 (1,198) (687) 584
State and local 423 21 646 (6) 603
Foreign 66 106 516 413 605
Current 2,769 706 (36) (280) 1,792
Federal 2,250 2,206 5,296 1,039 1,656
State and local (832) 912 456 263 144
Foreign 38 (44) (248) (57) (99)
Deferred 1,456 3,074 5,504 1,245 1,701
Income tax expense 4,225 3,780 5,468 965 3,493

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. AT&T Inc. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. AT&T Inc. deferred decreased from 2021 to 2022 and from 2022 to 2023.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. AT&T Inc. income tax expense decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Effective Income Tax Rate (EITR)

AT&T Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective tax rate 21.30% -122.20% 20.30% -33.80% 18.90%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. AT&T Inc. effective tax rate decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Components of Deferred Tax Assets and Liabilities

AT&T Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Depreciation and amortization (37,931) (36,570) (47,433) (46,952) (44,896)
Licenses and nonamortizable intangibles (20,049) (19,339) (15,576) (13,930) (17,355)
Lease right-of-use assets (5,100) (5,322) — — —
Lease liabilities 5,146 5,417 — — —
Employee benefits 2,970 2,251 3,338 5,279 5,143
Deferred fulfillment costs (1,941) (1,989) (1,797) (2,691) (3,050)
Equity in partnership (2,943) (3,284) (3,285) — —
Net operating loss and other carryforwards 6,484 5,817 6,703 7,355 7,301
Other, net (563) 248 (2,308) (4,562) (1,536)
Subtotal (53,927) (52,771) (60,358) (55,501) (54,393)
Deferred tax assets valuation allowance (4,656) (4,175) (4,638) (4,773) (4,941)
Net deferred tax assets (liabilities) (58,583) (56,946) (64,996) (60,274) (59,334)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. AT&T Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

AT&T Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Noncurrent deferred tax assets 83 86 230 198 168
Noncurrent deferred tax liabilities 58,666 57,032 65,226 60,472 59,502

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Noncurrent deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. AT&T Inc. noncurrent deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Noncurrent deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. AT&T Inc. noncurrent deferred tax liabilities decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

AT&T Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 407,060 402,853 551,622 525,761 551,669
Less: Noncurrent deferred tax assets, net 83 86 230 198 168
Total assets (adjusted) 406,977 402,767 551,392 525,563 551,501
Adjustment to Total Liabilities
Total liabilities (as reported) 287,645 296,396 367,767 346,521 349,735
Less: Noncurrent deferred tax liabilities, net 58,666 57,032 65,226 60,472 59,502
Total liabilities (adjusted) 228,979 239,364 302,541 286,049 290,233
Adjustment to Stockholders’ Equity Attributable To AT&T
Stockholders’ equity attributable to AT&T (as reported) 103,297 97,500 166,332 161,673 184,221
Less: Net deferred tax assets (liabilities) (58,583) (56,946) (64,996) (60,274) (59,334)
Stockholders’ equity attributable to AT&T (adjusted) 161,880 154,446 231,328 221,947 243,555
Adjustment to Net Income (loss) Attributable To AT&T
Net income (loss) attributable to AT&T (as reported) 14,400 (8,524) 20,081 (5,176) 13,903
Add: Deferred income tax expense (benefit) 1,456 3,074 5,504 1,245 1,701
Net income (loss) attributable to AT&T (adjusted) 15,856 (5,450) 25,585 (3,931) 15,604

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

AT&T Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

AT&T Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 11.76% -7.06% 11.89% -3.01% 7.67%
Adjusted net profit margin 12.95% -4.51% 15.15% -2.29% 8.61%
Total Asset Turnover
Reported total asset turnover 0.30 0.30 0.31 0.33 0.33
Adjusted total asset turnover 0.30 0.30 0.31 0.33 0.33
Financial Leverage
Reported financial leverage 3.94 4.13 3.32 3.25 2.99
Adjusted financial leverage 2.51 2.61 2.38 2.37 2.26
Return on Equity (ROE)
Reported ROE 13.94% -8.74% 12.07% -3.20% 7.55%
Adjusted ROE 9.79% -3.53% 11.06% -1.77% 6.41%
Return on Assets (ROA)
Reported ROA 3.54% -2.12% 3.64% -0.98% 2.52%
Adjusted ROA 3.90% -1.35% 4.64% -0.75% 2.83%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. AT&T Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. AT&T Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 AT&T Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. AT&T Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. AT&T Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

AT&T Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T 14,400 (8,524) 20,081 (5,176) 13,903
Operating revenues 122,428 120,741 168,864 171,760 181,193
Profitability Ratio
Net profit margin1 11.76% -7.06% 11.89% -3.01% 7.67%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to AT&T 15,856 (5,450) 25,585 (3,931) 15,604
Operating revenues 122,428 120,741 168,864 171,760 181,193
Profitability Ratio
Adjusted net profit margin2 12.95% -4.51% 15.15% -2.29% 8.61%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to AT&T ÷ Operating revenues
= 100 × 14,400 ÷ 122,428 = 11.76%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to AT&T ÷ Operating revenues
= 100 × 15,856 ÷ 122,428 = 12.95%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. AT&T Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Operating revenues 122,428 120,741 168,864 171,760 181,193
Total assets 407,060 402,853 551,622 525,761 551,669
Activity Ratio
Total asset turnover1 0.30 0.30 0.31 0.33 0.33
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Operating revenues 122,428 120,741 168,864 171,760 181,193
Adjusted total assets 406,977 402,767 551,392 525,563 551,501
Activity Ratio
Adjusted total asset turnover2 0.30 0.30 0.31 0.33 0.33

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Operating revenues ÷ Total assets
= 122,428 ÷ 407,060 = 0.30

2 Adjusted total asset turnover = Operating revenues ÷ Adjusted total assets
= 122,428 ÷ 406,977 = 0.30

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. AT&T Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 407,060 402,853 551,622 525,761 551,669
Stockholders’ equity attributable to AT&T 103,297 97,500 166,332 161,673 184,221
Solvency Ratio
Financial leverage1 3.94 4.13 3.32 3.25 2.99
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 406,977 402,767 551,392 525,563 551,501
Adjusted stockholders’ equity attributable to AT&T 161,880 154,446 231,328 221,947 243,555
Solvency Ratio
Adjusted financial leverage2 2.51 2.61 2.38 2.37 2.26

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity attributable to AT&T
= 407,060 ÷ 103,297 = 3.94

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity attributable to AT&T
= 406,977 ÷ 161,880 = 2.51

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 AT&T Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T 14,400 (8,524) 20,081 (5,176) 13,903
Stockholders’ equity attributable to AT&T 103,297 97,500 166,332 161,673 184,221
Profitability Ratio
ROE1 13.94% -8.74% 12.07% -3.20% 7.55%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to AT&T 15,856 (5,450) 25,585 (3,931) 15,604
Adjusted stockholders’ equity attributable to AT&T 161,880 154,446 231,328 221,947 243,555
Profitability Ratio
Adjusted ROE2 9.79% -3.53% 11.06% -1.77% 6.41%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income (loss) attributable to AT&T ÷ Stockholders’ equity attributable to AT&T
= 100 × 14,400 ÷ 103,297 = 13.94%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to AT&T ÷ Adjusted stockholders’ equity attributable to AT&T
= 100 × 15,856 ÷ 161,880 = 9.79%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. AT&T Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T 14,400 (8,524) 20,081 (5,176) 13,903
Total assets 407,060 402,853 551,622 525,761 551,669
Profitability Ratio
ROA1 3.54% -2.12% 3.64% -0.98% 2.52%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to AT&T 15,856 (5,450) 25,585 (3,931) 15,604
Adjusted total assets 406,977 402,767 551,392 525,563 551,501
Profitability Ratio
Adjusted ROA2 3.90% -1.35% 4.64% -0.75% 2.83%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to AT&T ÷ Total assets
= 100 × 14,400 ÷ 407,060 = 3.54%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to AT&T ÷ Adjusted total assets
= 100 × 15,856 ÷ 406,977 = 3.90%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. AT&T Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.