Analysis of the economic business and competitive background
In terms of profitability, AT&T's gross profit margin is higher than their competitors and even higher than Industry or market. However, excluding pre-tax profit margin, AT&T is in the red with net profit margins and ROA. Despite their bleak figures, AT&T has managed to stay within the industry standards for the most part.
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AT&T's financial ratios are in close proximity with the industry value. Their total debt/equity ratio is just under 2.0. This means that AT&T's overall ratios are lower than Verizon and the market but higher than industry.
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AT&T's long term debt is higher than their competitors and with the industry and market their cash flow is at a negative 9.36 per share; however, their total assets per share is at 64.13 keeping up with the industry standards and with Verizon. Their revenue per share is at 44.30, double that of Verizon.
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Lastly, referring to the chart below, AT&T's has experienced no dividend growth and has actually regressed in their one and three year revenue growth. Verizon has grown 3% and 17% in their 36 month revenue growth.
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