AT&T Inc. — Earnings Quality Grade F
T · Communication Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 26 days, change -3 days YoY
AR growth -8.2% vs revenue growth 2.7%
Revenue 2.7%, CFFO 3.9%. Cash follows revenue
Expense Quality
Inventory 6.6% vs COGS 3.2%. Normal
CapEx growth 2.9% vs revenue 2.7%. Normal
SG&A/Gross Profit = 38.7%. Normal
Gross margin 59.6%, change -0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.84. Profits backed by cash
FCF $19.4B, FCF/NI = 0.89
Accruals ratio = -4.4%. Low accruals
Cash $18.2B covers only 12% of debt $155.0B
Balance Sheet Health
Goodwill+Intangibles $196.8B = 178% of equity. Over 50%
Debt/EBITDA = 2.8x. Healthy
Other assets 8.4% vs revenue 2.7%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -2.78 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10