Financial Statement Analysis

February 28, 2013

Ben Batty Beau Breland Savannah Larsen Gus Rivera

(1) (2) AT&Ts total assets have increased by $953 billion dollars from 2010 to 2011 resulting in a .35% increase. The rise is explained by a total increase in revenues of 1.97% (see questions 2). The total liabilities account unfortunately has increased by $7,106 billion dollars resulting in a 4.32% increase. The owners equity account has decreased from $6,153 billion dollars from 2010 to 2011 resulting in a -5.82% decrease.
2011 Assets Total Liabilities Owners Equity $270,344 $164,547 $105,797 2010 $269,391 $157,441 $111,950 Percentage Change .35% 4.32% <5.82%>

(3) AT&Ts total revenues have increased by $2,443 billion from 2010 to 2011 resulting in a 1.97% increase. However their total expenses have increased 12.22% which is a total of $12,798 billion. There is substantial decrease in net income attributable to AT&T. From 2010 to 2011 there was an 80.14% decrease in net income attributable to AT&T which resulted in decrease amount of $15,920 billion.
2011 $126,723 $117,505 $4,184 $3,944 2010 $124,280 $104,707 $20,179 $19,864 Percentage Change 1.97% 12.22% <79.27%> <80.14%>

Total Revenues Total Expenses Net Income Net Income Attrib.

(5) AT&T authorizes only common stock. Their amount of authorized shares is 14,000,000,000 (12) For every dollar in current liabilities in 2011 AT&T has $.75 in current assets. In 2010 AT&T had $.60 in current assets for every dollar in current liabilities. The increase in the current ratio is due to the 2011 increase in current assets and decrease in current liabilities. For every dollar AT&T has in average net receivables in 2011 they are earning 9.31 times in net credit sales. For 2010 they earned 9.74 times in net credit sales. The receivables turnover has decreased from 2010 to 2011 9.74 times in 2010 to 9.31 times in 2011. The receivables turnover should be as high as possible, however, AT&T managed to only decrease by a small amount. Though the receivable turnover decreased, the average collection period also decreased benefiting AT&T. In 2011 the average collection period is 39.21 days and in 2010 was 41.76 days. For every dollar of average inventory AT&T is incurring 46.07 times of cost of goods sold in 2011. In 2010 they were incurring 47.88 times of cost of goods sold. The inventory turnover made a small decrease

from 2010 to 2011. Unfortunately the days in inventory have increased from 2010 to 2011. In 2011 AT&T had an average of about 7.92 days in inventory and in 2010 had an average of 7.62 days in inventory.
2011 Current Ratio Receivables Turnover Average Collection Period Inventory Turnover Days in Inventory .75:1 9.31 times 39.21 days 46.07 times 7.92 days 2010 .60:1 9.74 times 41.76 days 47.88 times 7.62 days

(13) For every dollar in net sales, AT&T produces 3.11% revenues. The profit margin has greatly decreased from 16.00% in 2010 to 3.11% in 2011. The result in the decrease is explained in the decrease in net income attributable to AT&T. For every dollar invested in AT&Ts average total assets they have in 2011 is 1.46% and in 2010 7.39%. Though AT&Ts assets have in creased from 2010 t 2011, their net income has substantially decreased. For every dollar AT&T has invested in common stock holders equity, 3.62% was net income in 2011 and 18.57% in 2010. The result of the return on stockholders equity has also been affect by the decrease in net income from 2010 to 2011. In 2011 AT&Ts net income earned on each share is $.66. Unfortunately at AT&T the earnings per share have decreased from $3.35 in 2010 to $.66 in 2011. The price earnings ratio has increased from 2010 to 2011. In 2011 the market price per share to earnings per share is $45.81 and for 2010 was $8.77. AT&Ts payout ratio has increased from 2010 to 2011 which is greatly beneficial to the AT&T stockholders. The percentage of earnings distributed in the form of cash dividends in 2011 is 2.58:1 and in 2010 .50:1.????
2011 Profit Margin Return on Assets Return on Stockholders Equity Earnings Per Share Price-Earnings Ratio Payout Ratio 3.11% 1.46% 3.62% $.66 45.82:1 2.58:1 2010 16.00% 7.39% 18.57% $3.35 8.77:1 .50:1