AT&T Inc. is a major telecommunications company that provides landline, long-distance, mobile, and cable television services. It was founded by Alexander Graham Bell and was formerly owned by American Telephone and Telegraph. The company has diversified products and services across wireless, wireline, and IT segments. While it has a geographically diverse business, it faces challenges from regulatory pressures and rapid technological changes.

1. AT&T Inc.
Team 1
• Ajith Ramachandra
• Kanchan Kusmude
• Rajesh Ilango
• Sailesh Dadlani
• Ushita Shah
• Vyshakh Venugopalan

2. APPROACH

3. Introduction
- Industry: Telecommunications
- Provides: Landline/long-distance/mobile phone service,
cable television service
- Parent Company: American Telephone and Telegraph
- Founder: Alexander Graham Bell
- IPO
- In the list of companies Dow Jones Industrial Average
- In 2005,SBC purchased former parent AT & T

4. AT&T
Temp
Evolution

5. Services
 Application Services
 Cloud Services
 Hosting Services
 Mobility Services
 Network Security
 Network Services
 Unified Communications
 Voice Services

6. Major Business Segments Revenues
• WIRELESS
• WIRE LINE – DATA MANAGED IT -SERVICES
• VOICE / OTHERS
Wireless
service
46%
Data
25%
Voice
18%
Directory
1% Other
10%
Segment wise Operating Revenues

7. Major Competitors
AT&T
34%
VERIZON
31%
T-MOBILE
14%
LEAP
WIRELESS
17%
OTHERS
4%

8. STRENGTHS:
Geographically diverse
business
Diverse products
WEAKNESSES:
Acquisition
integration
Wireless network
deficiencies
Loss of iPhone
exclusivity
OPPORTUNITIES:
International expansion
Mobile DTV
Increasing 3G and 4G
coverage
THREATS:
Regulated business
Multi-directional
competition
Rapid technological
changes

9. Balance Sheet

10. Balance Sheet

11. 0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2009 2010 2011 2012 2013
CURRENT RATIO 0.533 0.663 0.598 0.747 0.714
QUICK RATIOO 0.422 0.512 0.432 0.545 0.551
AxisTitle
RATIO’S

12. RATIO’S

13. FINANCIAL
Ratios Formula
Annual
2012
Quarterly
Q3 2013
Current Ratio Current assets/
Current Liabilities
0.714 0.509
Quick Ratio Cash+Marketable Securities+Accts
Receivable/Current Liabilities
0.551 0.382
Accts Receivable
Days Sales
Outstanding
(A/R / Sales) * Days in Period 36.25 34.82
Return on Equity Net Income / Avg Shareholder’s
Equity
0.081 0.045
Return on Sales Net Income / Net Sales 0.059 0.121
Debt Equity Ratio Total Liabilities / Shareholder’s
Equity
1.94 2.19

14. Income Statement
Annual Quarterly
• Revenues
• Operating Income
• EPS
• Quarter Over
Quarter
• 2013 -Quarters
• EPS

15. 0
20000
40000
60000
80000
100000
120000
140000
2008 2009 2010 2011 2012
Revenues
Operating Expenses
Income Statement

16. -5000
0
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012
Operating Income
Interest expense
Net Income
Income Statement

17. -1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 4
2008
2009
2010
2011
2012
2008 2009 2010 2011 2012
Diluted EPS -0.44 2.05 3.35 0.66 1.25
Basic EPS -0.44 2.06 3.36 0.66 1.25
EPS
Income Statement

18. Income Statement

19. Income Statement

20. Income Statement

21. Ln lkn
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40
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T
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A
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J
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N
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A
Y
A
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STOCK PRICE 2013
52 Week
High $ 39 Low: $ 32.76

22. 0
10
20
30
40
50
60
AT&T Vs Verizon Stock price Comparison
2013
Verizon AT&T

23. Stock Buy Recommendation
Telecommunications sector
has a very bright Future
AT&T is one of the Market Leaders
It trailing far from it’s all time high
Long-Term: Yes
Short-Term: No

24. Loan Recommendation
Current Ratio 0.714
DEBT/EQUITY Ratio 1.94
We would NOT LOAN due to weak
Accounting Ratios
AT&T has a Great HISTORY