At&T Financial Analysis
AT & T Financial Analysis
A company’s past performance is a good indicator of its future outlook. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T to conclude whether it is better to invest in the company or not.
AT & T Inc. is the United States largest telephone services provider. Its main business involves local, long distance telephone services, DSL internet, digital television and wireless services.
In this analysis I have used the balance sheet, the income statement and the statement of cash flows given in the financial statements for the year ended 2006, 2007 and 2008.
Initial Review
The external auditors in their report say that in their opinion, the company’s financial statements present fairly in all materials respects. The company’s financial position, results of its operations and cash flows.
The auditors also report that they have evaluated the internal controls system of the company and according to them there is no material weakness in its system and hence they give an unqualified opinion.
The management’s discussion and analysis:
Reports the variance in the main income statement and balance sheet accounts and the reasons thereof.
Presents an analysis of performance and position in different dimensions, for example territory, products, etc.
Explains the impact of extraordinary important transactions on the company’s performance and positions for example BellSouth’s acquisition.
Discloses major uncertainties and contingencies such as litigation, etc.
Analyzes the past environment faced by the company, its stock performance, risks associated, etc.
Looks forward to the future environment facing the company and presents their plan to optimize on opportunities, minimize risks, etc.
Explains the changes in accounting pronouncements and their impact on the financial statements.
Liquidity Analysis
Liquidity represents a company’s ability to pay its
A company’s past performance is a good indicator of its future outlook. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T to conclude whether it is better to invest in the company or not.
AT & T Inc. is the United States largest telephone services provider. Its main business involves local, long distance telephone services, DSL internet, digital television and wireless services.
In this analysis I have used the balance sheet, the income statement and the statement of cash flows given in the financial statements for the year ended 2006, 2007 and 2008.
Initial Review
The external auditors in their report say that in their opinion, the company’s financial statements present fairly in all materials respects. The company’s financial position, results of its operations and cash flows.
The auditors also report that they have evaluated the internal controls system of the company and according to them there is no material weakness in its system and hence they give an unqualified opinion.
The management’s discussion and analysis:
Reports the variance in the main income statement and balance sheet accounts and the reasons thereof.
Presents an analysis of performance and position in different dimensions, for example territory, products, etc.
Explains the impact of extraordinary important transactions on the company’s performance and positions for example BellSouth’s acquisition.
Discloses major uncertainties and contingencies such as litigation, etc.
Analyzes the past environment faced by the company, its stock performance, risks associated, etc.
Looks forward to the future environment facing the company and presents their plan to optimize on opportunities, minimize risks, etc.
Explains the changes in accounting pronouncements and their impact on the financial statements.
Liquidity Analysis
Liquidity represents a company’s ability to pay its
References: Yahoo Finance AT & T Profile: http://finance.yahoo.com/q?s=ATT Yahoo Finance Sprint Nextel Profile: http://finance.yahoo.com/q?s=s&.yficrumb=nfOlrbT9UZy AT&T Annual Reports http://www.att.com/gen/investor-relations?pid=13106