Columbia College AT&T Inc Business Finance Profitability Ratios Discussion

User Generated

onearf0315

Business Finance

Columbia College

Description

I choose AT&T as my company for this


Overview: Profitability Ratios

This week we will focus on the company’s profitability ratios. Profitability ratios are very important to investors. Companies often use these ratios when evaluating its managers.

If you wish to change companies, go to the discussion thread for Discussion 1 to reserve your new company making sure no one else has already reserved it. If you decide to stay with the same company you used for Discussion 1, there is no need to re-reserve it.

Profitability should be viewed from three different perspectives:

  1. Profitability in relation to sales.
  2. Profitability in relation to assets.
  3. Profitability in relation to equity.

It is quite possible for the company to perform well from one perspective and poorly from another.

Report Headings

Name of Company and Ticker Symbol: Company name, ticker symbol

10-K Report: Paste the direct URL to the company’s most recent 10-K Report

Company Website: Paste the URL to the company’s website

Industry name and NAICS Code: Provide the name and NAICS code associated with the Industry Average data.

Profitability Ratios: Follow the formatting in the example below to present the data. See this sample eStatement Studies document for help in finding the industry average data needed for this assignment.

20XX

20XX

20XX

Industry Average**

Gross Profit Margin
(Gross Profit / Sales)

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--

--

--

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--

Operating Profit Margin
(Operating Profit / Sales)

--

--

--

--

--

--

Pre-Tax Net Profit Mg
(Pre-Tax Profit** / Sales)

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--

--

--

--

--

Pre-Tax Return on Equity (Pre-Tax Profit* / Shareholders Equity)

--

--

--

--

--

--

Pre-Tax Return on Assets (Pre-Tax Profit** / Total Assets)

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--

--

--

--

--

*use Pre-Tax Profit to make the comparison to the industry average more accurate.
**There will be a single industry average for the gross, operating, and pre-tax net profit margins. List all 3 industry average figures for the pre-tax return on equity and the pre-tax return on assets.

Evaluation: Share what we learn from the data and information collected for this discussion. Interpret each of the ratios. Review the Financial Ratios Guidelines document for direction. Do you see any red flags? How profitable is the company in relation to sales? How profitable is it in relation to assets? How profitable is it in relation to equity? Sufficiently examining the data and information collected will likely require at least 250 words.

The sample e-statement studies document is below.

Unformatted Attachment Preview

325412 - Pharmaceutical Preparation Manufacturing 2014-15 Annual Statement Studies National - All Regions 0-1MM Type of Statement Unqualified Reviewed Compiled Tax Returns Other Number of Statements ASSETS Cash & Equivalents Trade Receivables - (net) Inventory All Other Current Assets Total Current Assets Fixed Assets (net) Intangibles (net) All Other Non-Current Assets Total Assets LIABILITIES Notes Payable-Short Term Cur. Mat.-L/T/D Trade Payables Income Taxes Payable All Other Current Liabilities Total Current Liabilities Long Term Debt Deferred Taxes All Other Non-Current Liabilities Net Worth Total Liabilities & Net Worth INCOME DATA Net Sales Gross Profit Operating Expenses Operating Profit All Other Expenses (net) Profit Before Taxes RATIOS Current - upper FRB Sales 1-3MM 1 1 3-5MM 5-10MM 10-25MM 25MM and Over 29 9 3 All 1 1 2 3 1 3 2 3 3 1 4 4 9 5 7 1 2 16 64 4 12 21 31 105 41 18 12 9 94 27 (4/1-9/30/13) 174 14.5 23.7 18.1 3.1 59.3 19.3 9.3 12.0 100.0 8.7 20.5 22.6 1.3 53.0 29.2 9.2 8.6 100.0 17.7 17.7 19.5 2.8 57.8 31.4 4.6 6.3 100.0 14.5 20.7 20.9 3.6 59.7 20.8 13.3 6.1 100.0 14.2 20.3 20.8 3.1 58.4 23.9 10.9 6.8 100.0 6.5 1.7 14.1 .2 5.9 28.4 16.5 .4 7.8 47.0 100.0 9.3 3.5 13.3 .0 8.4 34.6 14.6 .2 5.9 44.7 100.0 4.8 3.0 10.3 .1 11.0 29.2 16.0 .1 3.1 51.6 100.0 4.5 6.4 15.4 .4 11.5 38.3 16.4 1.4 6.2 37.8 100.0 5.5 5.0 13.9 .3 10.6 35.2 17.4 .9 5.7 40.8 100.0 100.0 49.6 38.7 10.9 1.8 9.1 100.0 44.5 41.0 3.4 .4 3.0 100.0 52.8 41.1 11.7 -.6 12.3 100.0 46.0 33.7 12.3 2.7 9.6 100.0 47.4 36.4 11.0 1.8 9.2 3.8 2.5 4.0 3.4 3.4 Week 7 Week 8 Week 8 Week 8 Week 5 Page 1 of 3 325412 - Pharmaceutical Preparation Manufacturing 2014-15 Annual Statement Studies National - All Regions 0-1MM Current - median Current - lower Quick - upper Quick - median Quick - lower Sales / Receivables - upper Sales / Receivables - median Sales / Receivables - lower Cost of Sales / Inventory - upper Cost of Sales / Inventory - median Cost of Sales / Inventory - lower Cost of Sales / Payables - upper Cost of Sales / Payables - median Cost of Sales / Payables - lower Sales / Working Capital - upper Sales / Working Capital - median Sales / Working Capital - lower EBIT / Interest - upper EBIT / Interest - median EBIT / Interest - lower Net Profit + DDA / Curr Mat LTD - upper Net Profit + DDA / Curr Mat LTD - median Net Profit + DDA / Curr Mat LTD - lower Fixed / Worth - upper Fixed / Worth - median Fixed / Worth - lower Debt / Worth - upper Debt / Worth - median Debt / Worth - lower % Profit before Taxes / Tangible Net Worth - upper % Profit before Taxes / Tangible Net Worth - median % Profit before Taxes / Tangible Net Worth - lower % Profit before Taxes / Total Assets - upper % Profit before Taxes / Total Assets - median % Profit before Taxes / Total Assets - lower Sales / Net Fixed Assets - upper Sales / Net Fixed Assets - median Sales / Net Fixed Assets - lower Sales / Total Assets - upper FRB Sales 1-3MM 3-5MM 2.0 1.5 2.4 1.3 .7 [27] 13.6 [35] 10.5 [55] 6.6 [37] 9.9 [66] 5.5 [104] 3.5 [30] 12.3 [36] 10.0 [61] 6.0 4.9 9.3 21.1 97.1 (10) 11.4 3.1 .1 .3 .6 .4 1.5 7.2 84.8 (11) 23.3 7.0 23.7 8.9 3.5 82.9 15.3 6.9 3.0 5-10MM 10-25MM 25MM and Over 1.6 1.9 1.9 1.2 1.0 1.2 1.5 2.4 2.1 1.0 1.1 1.0 .6 .6 .6 [27] 13.6 [24] 15.5 [33] 10.9 [39] 9.4 [37] 9.9 [45] 8.2 [54] 6.7 [49] 7.5 [60] 6.1 [4] 85.3 [33] 11.1 [54] 6.7 [55] 6.6 [91] 4.0 [91] 4.0 [99] 3.7 [146] 2.5 [130] 2.8 [20] 18.7 [15] 24.7 [28] 12.9 [36] 10.1 [26] 13.8 [44] 8.3 [70] 5.2 [46] 7.9 [68] 5.4 5.8 3.7 3.2 13.3 7.1 7.3 66.2 999.8 31.9 6.7 50.8 44.1 (17) 3.9 (27) 6.3 (88) 8.1 -5.4 2.1 2.1 11.2 (48) 4.0 1.2 .2 .3 .2 .7 .7 .7 2.1 1.6 16.2 .9 .4 .5 1.3 .9 1.6 3.3 3.4 63.5 59.5 71.4 62.9 (18) 11.6 (29) 32.4 (83) 23.5 -11.8 11.2 12.2 16.0 33.2 21.7 8.5 14.1 9.8 -6.3 4.3 3.4 32.3 19.3 28.8 16.0 6.6 10.3 3.5 3.5 4.2 3.2 2.2 2.3 All 1.9 1.2 2.0 1.0 .6 [31] 11.7 [42] 8.7 [57] 6.4 [47] 7.7 [89] 4.1 [126] 2.9 [25] 14.5 [39] 9.3 [65] 5.6 3.7 7.5 26.9 39.7 (145) 6.4 1.8 10.5 (62) 4.3 1.4 .2 .6 2.7 .5 1.3 8.5 63.2 (145) 23.5 9.1 23.6 9.8 2.9 29.1 9.8 4.2 2.5 Week 5 Week 6 Week 7 Week 8 Week 8 Week 6 Page 2 of 3 325412 - Pharmaceutical Preparation Manufacturing 2014-15 Annual Statement Studies National - All Regions 0-1MM Sales / Total Assets - median Sales / Total Assets - lower % Depr, Depl, Amort / Sales - upper % Depr, Depl, Amort / Sales - median % Depr, Depl, Amort / Sales - lower % Officers', Directors', Owners' Comp / Sales - upper % Officers', Directors', Owners' Comp / Sales - median % Officers', Directors', Owners' Comp / Sales - lower Net Sales ($) Total Assets ($) FRB Sales 22M 43M 1-3MM 7389M 4820M 3-5MM 2.3 1.4 51781M 48662M 5-10MM 10-25MM 25MM and Over 2.0 1.5 1.5 1.3 1.1 .9 1.0 1.2 1.0 (18) 1.4 (26) 2.3 (87) 2.1 6.0 4.2 3.5 1.9 .9 (10) 2.7 (12) 1.6 3.7 4.0 142960M 505328M 8891011M 84858M 394722M 6781121M All 1.7 1.0 1.0 (143) 2.0 3.7 1.4 (36) 2.4 3.6 9598491M 7314226M Week 6 Page 3 of 3
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Explanation & Answer

Attached.

Running Head: AT&T INC.

1

AT&T Inc. (T)
Name
Date
Institution

AT&T INC.

2

Report Headings
AT&T Inc. (T)
10-K Report: https://last10k.com/sec-filings/t
Company Website: https://www.att.com/
Industry name and NAICS Code:
NAICS 1: 517312 (Wireless Telecommunications Carriers except for satellite)
NAICS 2: 334220 (Radio and TV broadcasting and wireless communications equipment
manufacturing).

Profitability Ratios:
2017

2018

2019

Industry
Average**

Gross Profit Margin
(Gross Profit / Sales)

51....


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