AT & T And Sprint Comparison

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Today, communication through a wireless devices is not uncommon. Nearly everyone uses some type of mobile device, such as smartphones or tablets. Most devices need service providers to be able to communicate with others. I’ve chosen to compare the financial reports of AT&T and Sprint. Reason why I chose these two companies is because they are both well known. AT&T is my current service provider and Sprint is one of their competitors. Debt ratio is a ratio that measures what proportion of a company’s assets is financed by debt. So every asset has to be owned by either creditors or owners. The debt ratio can help shareholders and creditors decide if a company is at risk of going under. According to the table in 2011, AT&T’s debt ratio was …show more content…

According to the table in 2011, AT&T’s current ratio was 0.74 cents to every dollar of current liabilities and Sprints current ratio was 1.59 to every dollar of current liabilities. AT&T’s current ratio fell in 2012 to 0.74 cents and then to 0.66 cents in 2013, but in 2014, it increased gradually to 0.85 cents, while Sprint’s current ratio decreased to 0.85 cents to every dollar of current liabilities in 2014. It is good that AT&T is increasing but a healthier ratio is $2 of current assets to every $1 of current liabilities. Sprint isn’t doing very well. The better company to invest in is AT&T because it has a better debt ratio, it shows that the company is in good standing compared to Sprint, who has an extremely high debt ratio. Nearly each year AT&T increased two out of the three ratios. Their return on assets increased while Sprints continued to decrease. Their current ratio may have fallen for two years but in 2014 they bounced back by increasing 0.19 cents for every dollar of current liabilities. Overall, according to the table, AT&T is doing better than Sprint. In conclusion, the three ratios explained above can be used on any company’s income and balance sheet. I used the ratios to compare the two public utilities, AT&T and Sprint. You’re able to see the difference between the companies by the table provided and

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