AT&T, the US US phone and telecoms giant carries a lot of debt.<\/p>\n\n\n\n
https:\/\/www.att.com<\/a><\/p>\n\n\n\n These are large debt numbers:<\/p>\n\n\n\n https:\/\/investors.att.com\/~\/media\/Files\/A\/ATT-IR-V2\/financial-reports\/quarterly-earnings\/2021\/debt-list-2q21.pdf<\/a><\/p>\n\n\n\n $179,783,248,238<\/strong><\/p>\n\n\n\n That is $179 Billion<\/strong> of debt.<\/p>\n\n\n\n How we need to understand this figure.<\/p>\n\n\n\n It needs to repay $82.1bn <\/strong>in the next 12months (liabilities due in the next year). It still carries a large level of debt.<\/p>\n\n\n\n https:\/\/investors.att.com\/financial-reports\/debt\/debt-information<\/a><\/p>\n\n\n\n The cost of interest on this debt is about $8,048 million = $8.048 Billion<\/strong>
It has cash reserves of $11.9bn<\/strong> (immediate liquidity)
It also has receivables of $20.1bn <\/strong>in the next 12months (money owed to AT&T).<\/p>\n\n\n\n
So while interest rates are low, paying $8bn on interest is quite manageable, when its turnover is $171,760 million = $171 Billion<\/strong>.
So the Debt to Revenue is at 4%<\/strong>.<\/p>\n\n\n\n