The Cost of Financing AT&T Debt.

AT&T the American Telecommunications giant has a large debt mountain.

http://www.att.com/Common/about_us/files/pdf/investor_relations/debt_list_2q16.pdf

The total debt is a staggering $126,835,952,257 ($126 Billion).

However what is very interesting is the cost of the debt, (the interest payments).

http://www.asadkarim.co.uk has calculated the annual interest on all the 124 Bonds that are still outstanding that adds up to the $126 Billion.

The annual cost of interest payments are actually:-

$4,996,447,892

That is just under $5bn a year to AT&T.

The revenues of AT&T are about $146.8 billion.

So the actual debt burden which may seem large at $126,835,952,257, when interest rates are low, and the cash flow is strong, one can safely say $4,996,447,892 is fine.

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