For this section of the course project, examine Form 10-Q of the SEC firm (AT&T)
Tasks:
Review the four most recent forms filed by the firm. Include the following in your report:
- Summarize the performance trends for the firm over the past year.
- Evaluate what you think could have been the reason behind these trends.
- Analyze what the filing deadlines for Form 10-Q are. Are there any penalties associated with late filing?
- Analyze at what point a firm will begin or discontinue filing Form 10-Q.
https://www.sec.gov/answers/form10q.htm
Company Research AT&T is a different telecommunications company that provides wi-fi and wireline telecom services, video leisure offerings, and media services (AT&T) The corporation is going through sturdy opposition from corporations which include: Verizon, T-cell, and Comcast. Additionally, AT&T is struggling with a significant debt load, which has been affecting the business enterprise's financial performance. Monetary evaluation AT&T, the gross profit margin is fifty-three.15%, that's higher than the industry common of 46-sixty-four%. The employer's go back on income (ROS) is 11.89%, which is likewise better than the industry average of eight ninety-four%. The modern ratio is 1.12, indicating that the employer has enough present-day assets to cowl its current liabilities. furthermore, AT&T's return on fairness (ROE) is thirteen.15%, which is higher than the enterprise common of 9-ninety-four%. Funding decision After analysing the financial ratios and undertaking additional research, it's far obtrusive that AT&T is a higher funding. The organisation has a better gross profit margin and ROS, indicating better profitability. additionally, AT&T has a higher contemporary ratio, which indicates higher liquidity. Eventually, AT&T's ROE is higher', indicating better returns for shareholders. even though the organization has big debt, it's miles making efforts to reduce its debt load and enhance its financial overall performance. Therefore, it's far a higher investment choice in comparison to different, which is going through declining sales and sturdy opposition within the retail pharmacy enterprise. Profitability: AT&T's gross earnings margin has been decreasing over the last three years, although it remains above enterprise average. The net earnings margin has additionally been reducing, which could imply that the agency is going through elevated prices. The return on belongings (ROA) and return on equity (ROE) ratios were below industry average, suggesting that the employer is not producing as an awful lot of income as its competition. Marketplace fee: AT&T's market-to-e-book ratio has been continually underneath 1, indicating that the marketplace values the business enterprise much less than its e-book price. Its price-to-earnings (P/E) ratio has also been continually underneath industry average, indicating that buyers aren't willing to pay as an awful lot for the enterprise's income as they may be for its competition. Future Prospects of AT&T: AT&T faces extreme opposition inside the telecommunications industry, and its state-of-the-art financial overall performance indicates that it is suffering to maintain up with its competitors. but the business enterprise is making an investment closely in 5G technology and growing its streaming services, that may help strain destiny increase. in addition, the recent sale of its Warner Media division may want to assist to lessen its debt and decorate its financial role. Modern-day news Thousands and hundreds of American citizens don’t have the tools they want to make the most of the internet. digital Navigators might also assist individuals in getting online with the aid of teaching them how to hook up with the net, utilise computers, increase virtual competencies, and connect to valuable property and opportunities. Gavin Anderson is aware of how to pick out the most vicinity for our mobile web sites in Miami. His way elements in a couple of records factors, including climate threat scores that flag places with an excessive threat of flooding or wildfire years into the future. thanks to Gavin’s ardour and in advance questioning, this method can be computerized for all our areas across the United States of a, due to the fact we want our infrastructure to resist weather influences for future years (AT&T, 2023) AT&T The stock market is increasing at a rapid pace. The inventory has resulted in a massive profit for the investors. Recent event affecting the firm. The usage of the conventional move-to-marketplace method to result in patron will increase in Fibre and Mobility. building on its fulfilment in 2021, whilst it led the enterprise in post-paid voice net additions, AT&T intends to pressure comparable subscriber boom via its everyday skip-to-marketplace method and by targeting underserved mobility market segments. furthermore, AT&T expects to keep benefiting from the migration of customers to its unlimited plans, in particular the higher-ARPU unlimited Elite, the employer's fastest-growing rate plan. moreover, as its fibre footprint expands, the agency expects to retain gaining market percentage within the customer broadband markets in which it offers fibre, building at the momentum it established with four consecutive years of additions of one million or extra fibre subscribers. The company's ability is being driven with the aid of AT&T's ability to offer symmetric solutions for clients and clients' organizations, as well as by using its improvement into the not noted small and midsize business customer class. those customers need dependability, speed, and ease, and AT&T offers all three. The business enterprise has reliable 5G and fibre networks with the quickest fibre speeds inside the state, a simple person experience, and upfront pricing. Key Events at AT&T: On March 6, 2015, it changed into declared that AT&T may be removed from the Dow Jones industrial common, being supplanted via Apple. On October 20, 2016, it changed into accounted for that AT&T became in converses with procure Time Warner, with a surrender intention to make bigger its media assets. On October 22, 2016, AT&T declared an association to shop for Time Warner for $108.7 billion. each time recommended via authorities’ controllers, the consolidation might convey AT&T's media transmission belongings beneath a similar umbrella as HBO, Turner Broadcasting device and the Warner Bros. studio. On February 15, 2017, Time Warner investors affirmed the consolidation. On February 28, FCC Chairman Ajit Pai declared that his organization won't survey the association, leaving the audit to the USA branch of Justice. On March 15, 2017, the European fee affirmed the consolidation. AT&T moreover claims a ~2% stake in Canadian-domiciled leisure organization Lionsgate. On July 13, 2017, it has become accounted for that AT&T will present a cloud-primarily based DVR real time function as an element of its push to make a sure collectively stage across DirecTV and its DirecTV Now internet-based totally feature, with U-section to be added soon. On August 22, 2017, the consolidation became affirmed with the aid of Mexican specialists. On September 5, 2017, the consolidation become affirmed with the aid of Chilean experts. On September 12, 2017, it turned into accounted for that AT&T is trying to dispatch an easy out of the plastic new virtual television-like assistance for conveyance extremely good over its personal or a rival's broadband corporation at some point one year from now. On October 23, 2017, the cut-off time emerge as stretched out for a quick timeframe to finish the affiliation. the primary cut-off time was on October 22. On November 28, 2017, it became noted that the consolidation could be reached out until April 2018. References AT&T. (n.d.). AT&T Corporation. AT&T. (2023). Retrieved from https://about.att.com. Annual Report to Shareholders (ARS) Analysis: AT&T For this project, I analyzed the Annual Report to Shareholders (ARS) of AT&T, one of the leading telecommunications companies in the world. The most recently filed ARS by the company was for the fiscal year 2020. 1. Differences between the ARS and Forms 10-K and 10-Q The ARS differs from Forms 10-K and 10-Q in several ways. While Forms 10-K and 10-Q are regulatory filings with the Securities and Exchange Commission (SEC), the ARS is primarily designed as a communication tool for shareholders. The ARS contains a narrative discussion of the company's financial results, operations, and strategy, while Forms 10-K and 10-Q provide more detailed financial information, including audited financial statements, footnotes, and management's discussion and analysis (MD&A). 2. Information Presented in the ARS The ARS contains several types of information, including financial highlights, management's discussion and analysis, corporate strategy, risk factors, and governance information. Four specific types of information included in the ARS for AT&T are: a) Financial Highlights: This section presents a summary of the company's financial performance for the year. For instance, in 2020, the company's revenue was $171.8 billion, down 5.3% from the previous year. b) Management's Discussion and Analysis: This section provides a narrative discussion of the company's financial and operational results, as well as its future outlook. For example, in 2020, AT&T's net income was $13.9 billion, compared to $13.9 billion in 2019. c) Corporate Strategy: This section explains the company's long-term strategy and objectives. For instance, in 2020, AT&T announced that it planned to invest in 5G and fiber to support its growth in the telecommunications industry. d) Governance Information: This section provides information on the company's board of directors, executive compensation, and shareholder engagement activities. 3. Graphics and Charts in the Document The ARS includes several graphics and charts, such as income statements, balance sheets, and cash flow statements. These graphics help investors and shareholders understand the financial performance of the company. For example, the income statement chart shows the revenue and net income of the company for the past three years, while the cash flow statement chart illustrates the company's operating, investing, and financing cash flows. 4. Use of the ARS as a Marketing Tool The ARS is an essential marketing tool for companies as it presents their financial performance, corporate strategy, and governance structure to shareholders and potential investors. AT&T uses its ARS to communicate its brand and reputation to its stakeholders. For instance, the company's ARS emphasizes its commitment to innovation, customer service, and social responsibility, which could help attract investors who share the same values. In conclusion, the ARS provides valuable information for shareholders and potential investors. By analyzing AT&T's ARS, I was able to understand the company's financial performance, corporate strategy, and governance structure. Furthermore, the ARS is an essential marketing tool that helps the company communicate its brand and reputation to its stakeholders. 2020 2020 2021 Jan,29 Announced CY’2019 results. Revenue -$181.2bn, Cash/Operation 12%, Net Debt $20.3bn, Assets Monetize-$18bn. Overall company exceeded guidance and delivered solid operating results.2020 promising &create value to owners July,23 Q2’2020 Revenue-$41bn 8.9% vs 2019, NI-$4.7bn, OI-$3.5bn vs 2019-$7.5bn, Cash/Operation. -$12.2bn. Analysis: Segment- Mobility 0.8%, Entertn 11.4% , WarnerMedia-Turner 12.4%, HBO 5.2%, WarnerBros 3.9%.Covid19 causing disruptions. Jan,27 Announced CY’2020 results. Revenue -$171.8bn 5.2%YoY. OE-$165.4bn 8%YoY, OI-$6.4bn 77.1%YoY, FCF-$27.5bn, Net Debt $3.5bn. Operation hit by Covid19.Company did better in Broadband >1mn. & Software based. Q1’2020 Revenue-$42.8bn 4.6% vs 2019, NI-$4.6bn vs 2019-$4.1bn, OI-$7.5bn vs 2019-$7.2bn, Cash/Operation. -$8.9bn. Analysis: Segment- Mobility 0.2%,Entertn 7.2% , WarnerMedia%-Turner 8.2%, HBO .9%, WarnerBros 7.9%.Covid19 impacted result Q2’2020 Revenue-$42.3bn 5% vs 2019, NI-$2.8bn vs 2019-$3.7bn, OI-$6.1bn vs 2019-$7.9bn, Cash/Operation. -$12.1bn. Analysis: Segment-Entertn 10.4% ,WarnerMedia-Turner 5.6%, Warner Bros 27.7% Cash Flow boosted by issue of $2bn Equity Instrument. Q1,2020 Revenue-$43.9bn 2.7%, OE 2.83%Cash From Operation-$9.9bn 12%,FCF-$5.9bn 51%,Net debt $21bn, Comm.Revenue 9%, OI 3.7%, EBITDA 2.3% Apr,22 Oct,22 Apr.22 2020 2020 2021 2021 2021 2022 Jul,21 Announced decision to sell Latin American video operation “Vrio” to Grupo Werthein and classified as Held-for-Sale. Oct,21 Q3’2021 Revenue-$40bn 5.7% vs 2020, NI-$5.9bn, OI-$7.1bn vs 2020-$6.1bn,OE-$32.8bn 9.4%, Cash/Operation. -$9.9bn 30.2%, Analysis: Segment- Mobility $19.1bn 7%,Buss.Wireline$5.9bn,Cons.Wireline$3.1bn, WarnerMedia-$8.4bn 14.2%,OE-$6.4bn 13.8%. Jan,27 Announced CY’2021 Cons. Revenue -$168.9bn 2%YoY.AdjEPS-$3.40 vs 2020 $3.18,OE 12%YoY, OI-$23.4bn 266%YoY,OI Margin 13.8%, FCF-$26.8bn 3%, Net Debt $8.7bn,CFO-$42bn Q2’2021 Revenue-$44bn 7.6% YoY, OE-$40.8bn 9% YoY, NI-$4.9bn vs 2020, OI-$3.3bn v 7.4%YoY, Cash/Operation. -$10