Aureus
BGood

AT&T Inc.(T)

B

Financial data as of Dec 31, 2025Declining · Communication Services

FCF Margin15.5%Free Cash Flow / Revenue
Cash Conversion183.5%Operating CF / Net Income
Free Cash Flow$19.4B
Revenue$125.6B
Net Cash-$136.8BNet debt position
Debt / FCF8.0xElevated debt burden
Current Ratio0.91Tight short-term liquidity
YoY FCF Growth-10.2%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-1High debt-to-FCF ratio (8.0x)
→
+0.5Healthy FCF margin with manageable debt (15.5%, 8.0x)
→
-1Current ratio below 1.0 (0.91)
→
-0.5Moderate decline but healthy margin (-10.2% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalB

Analysis Summary

Strengths

  • Strong FCF margin (15.5%)
  • Excellent cash conversion (184%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($136.8B)
  • High debt-to-FCF ratio (8.0x)
  • Current ratio below 1.0 — tight short-term liquidity
  • FCF trend declining (-10.2% YoY) but margin still healthy

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin15.5%
Net Margin17.5%
Operating CF Margin32.1%
CapEx Ratio16.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$136.8BNet debt position
Debt / FCF8.0xElevated debt burden
Current Ratio0.91Tight liquidity
Debt / Equity1.40Moderate leverage

Quarterly FCF Trend

-10.2% YoYDeclining (-10.2%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAT&T Inc.
SectorCommunication Services
Free Cash Flow$19.4B
Revenue$125.6B
Net Income$22.0B
Operating Cash Flow$40.3B
Capital Expenditure$20.8B
FCF Margin15.5%
Cash Conversion Rate183.5%
Net Margin17.5%
Total Debt$155.0B
Total Cash$18.2B
Net Cash-$136.8B
Current Ratio0.91
Debt / Equity1.40
Debt / FCF8.0x
YoY FCF Growth-10.2%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance

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