The purpose of this homework is to perform a financial analysis of a company using your knowledge of financial statements and financial analysis.

1. Please select a publicly-traded company on the New York Stock Exchange that has at least 3 years of financial statements. AT&T

2. Prepare an analysis covering 3 years (this can be any contiguous 3-year period) that includes: 2016-2019
   1. Evaluation of the operating performance in each year and as a trend over the 3 years.
   2. Analysis of the financial performance in each year and as a trend over the 3 years. Be sure to use a comprehensive set of financial ratios from those presented in the book and other analyses from the book you deem appropriate. Provide a description of each ratio, explaining its meaning and what the numbers for this company convey. (Survey Of Accounting- Carl S Warren)
   3. Provide a summary analysis that indicates whether the company is in good financial condition and what you expect for the near future (and why).

The report should be professional in appearance and well-written. I will grade the report on thoroughness of analysis, accuracy of analysis, and quality. 3 pages max

By the way, you can include copy-and-pasted images of the financial statements or you can recreate the financial statements. Either is fine.

Selected Financial and Operating Data Dollars in millions except per share amounts 2018 2017 2016 2015 2014 $ $ $170,756 $144,660 $ 26,096 $ 7,957 $ (48) $ 6,782 $ 4,920 $ 19,953 $160,546 $140,576 $ 19,970 $ 6,300 $ (128) $ 1.597 S (14.708) $ 29,847 $163,786 $140,243 $ 23,543 4,910 $ 98 1,081 $ 6,479 $ 13,333 $146.801 $126,439 $ 20,362 $ 4120 S 79 S 4,371 $ 7,005 $ 13,687 $132,447 $113,860 $ 18,587 3,613 $ 175 $ (4.794) $ 3,619 $ 6,736 $ $ $ (583) $ 19,370 S (397) $ 29,450 $ (357) $ 12.976 $ (342) $ 13,345 (294) 6,442 $ $ 2.85 S 4.77 $ 2.10 S 2.37 $ 1.24 At December 31 and for the year ended Financial Data Operating revenues Operating expenses Operating Income Interest expense Equity In net Income (Loss) of affiliates Other Income (expense) - net Income tax (benefit) expense Net Income Less: Net Income Attributable to Noncontrolling Interest Net Income Attributable to AT&T Earnings Per Common Share: Net Income Attributable to AT&T Earnings Per Common Share - Assuming Dilution: Net Income Attributable to AT&T Cash and cash equivalents Total assets Long-term debt Total debt Capital expenditures: Dividends declared per common share Book value per common share Ratio of earnings to fixed charges Debt ratio Net debt ratio Welghted average common shares outstanding (000,000) Welghted average common shares outstanding with dilution (000,000) End of period common shares outstanding (000.000) $ $ 2.85 $ 5,204 $531,864 $166,250 $176,505 $ 21,251 $ 2.01 $ 26.63 3.42 47.7% 46.2% 6,778 S 2.37 $ 5,121 $402,672 $118.515 $126.151 $ 20,015 2.10 $ 5.788 $403,821 $113,681 $123,513 $ 22,408 $ 1.93 20.22 3.59 S 4.76 $ 50,498 $444,097 $125,972 $164.346 $ 21,550 S 1.97 S 23.13 2.63 53.6% 37.2% 6,164 $ 1.24 $ 8,603 $296,834 $ 75,778 $ 81,834 $ 21,433 $ 1.85 17.40 S S $ 1.89 20.12 4.01 $ 149.9% 2.91 47.5% 42.6% 5,205 50.5% 48.5% 5.628 47.5% 6.168 6,806 7,282 6,183 6,139 6.189 6,139 5,646 6,145 5,221 5,187 268,540 281,450 243,620 Number of employees 268,220 254,000 Includes FirstNet reimbursements of $1,429 in 2018. $279 in 2017 and $0 in 2016-2014 (see Note 19). Percent Change 2018 VS. 2017 VS. 2017 2016 2018 2017 2016 (3.8)% (2.5)% 2.9 13.5 $144,631 18,941 7,652 1,740 1.191 (3.399) 170,756 Operating Revenues Communications WarnerMedia Latin America Xandr Corporate and other Eliminations and consolidation AT&T Operating Revenues Operating contribution Communications WarnerMedia Latin America Xandr Segment Operating Contribution $150,378 430 8,269 1,373 1.279 (1.183) 160,546 $154,232 418 7,283 1,333 1.731 (1.211) 163.786 (7.5) 26.7 (6.9) 3.0 (26.1) 2.3 (2.0) 6.4 1.8 32,262 5,695 (710) 1,333 $ 38,580 31,685 62 (266) 1,202 $ 32,683 32,437 96 (661) 1.233 $ 33,105 (2.3 (35.4) 59.8 (2.5) (1.3)% 10.9 18.0% The Latin America segment accounted for approximately 4% of our 2018 total segment operating revenues compared to 5% in 2017. This segment provides entertainment and wireless services outside of the U.S. This segment contains the following business units: Vrio provides video services primarily to residential customers using satellite technology. Mexico provides wireless service and equipment to customers in Mexico. The Xandr segment accounted for approximately 1% of our total segment operating revenues in 2018 and 2017 and 3% of our 2018 total segment operating contribution as compared to 4% in 2017. This segment provides advertising services. These services utilize data insights to develop higher-value targeted advertising. RESULTS OF OPERATIONS Consolidated Results Our financial results are summarized in the following table. We then discuss factors affecting our overall results for the past three years. Additional analysis is discussed in our "Segment Results" section. We also discuss our expected revenue and expense trends for 2019 in the "Operating Environment and Trends of the Business" section. Percentage increases and decreases that are not considered meaningful are denoted with a dash. Certain prior period amounts have been reclassified to conform to the current period's presentation. Percent Change 2018 vs. 2017 VS. 2017 2016 2018 2017 2016 $152,345 18,411 170.756 $145,597 14,949 160.546 $148.884 14.902 163,786 4.6% 23.2 6.4 (2.2)% 0.3 (2.0) 1.6 Operating revenues Service Equipment Total Operating Revenues Operating expenses Operations and support Depreciation and amortization Total Operating Expenses Operating Income Interest expense Equity In net Income (Loss) of affiliates Other Income (expense) - net Income Before Income Taxes Net Income Net Income Attributable to AT&T 116,230 28,430 144,660 26,096 7,957 (48) 6,782 24,873 19,953 $ 19,370 116.189 24,387 140,576 19,970 6,300 (128) 1,597 15,139 29,847 $ 29,450 114,396 25,847 140.243 23,543 4.910 98 1,081 19,812 13,333 $ 12.976 16.6 2.9 30.7 26.3 62.5 (5.6) 0.2 (15.2) 28.3 47.7 (23.6) 64.3 (33.1) (34.2)% -% Selected Financial and Operating Data Dollars in millions except per share amounts 2018 2017 2016 2015 2014 $ $ $170,756 $144,660 $ 26,096 $ 7,957 $ (48) $ 6,782 $ 4,920 $ 19,953 $160,546 $140,576 $ 19,970 $ 6,300 $ (128) $ 1.597 S (14.708) $ 29,847 $163,786 $140,243 $ 23,543 4,910 $ 98 1,081 $ 6,479 $ 13,333 $146.801 $126,439 $ 20,362 $ 4120 S 79 S 4,371 $ 7,005 $ 13,687 $132,447 $113,860 $ 18,587 3,613 $ 175 $ (4.794) $ 3,619 $ 6,736 $ $ $ (583) $ 19,370 S (397) $ 29,450 $ (357) $ 12.976 $ (342) $ 13,345 (294) 6,442 $ $ 2.85 S 4.77 $ 2.10 S 2.37 $ 1.24 At December 31 and for the year ended Financial Data Operating revenues Operating expenses Operating Income Interest expense Equity In net Income (Loss) of affiliates Other Income (expense) - net Income tax (benefit) expense Net Income Less: Net Income Attributable to Noncontrolling Interest Net Income Attributable to AT&T Earnings Per Common Share: Net Income Attributable to AT&T Earnings Per Common Share - Assuming Dilution: Net Income Attributable to AT&T Cash and cash equivalents Total assets Long-term debt Total debt Capital expenditures: Dividends declared per common share Book value per common share Ratio of earnings to fixed charges Debt ratio Net debt ratio Welghted average common shares outstanding (000,000) Welghted average common shares outstanding with dilution (000,000) End of period common shares outstanding (000.000) $ $ 2.85 $ 5,204 $531,864 $166,250 $176,505 $ 21,251 $ 2.01 $ 26.63 3.42 47.7% 46.2% 6,778 S 2.37 $ 5,121 $402,672 $118.515 $126.151 $ 20,015 2.10 $ 5.788 $403,821 $113,681 $123,513 $ 22,408 $ 1.93 20.22 3.59 S 4.76 $ 50,498 $444,097 $125,972 $164.346 $ 21,550 S 1.97 S 23.13 2.63 53.6% 37.2% 6,164 $ 1.24 $ 8,603 $296,834 $ 75,778 $ 81,834 $ 21,433 $ 1.85 17.40 S S $ 1.89 20.12 4.01 $ 149.9% 2.91 47.5% 42.6% 5,205 50.5% 48.5% 5.628 47.5% 6.168 6,806 7,282 6,183 6,139 6.189 6,139 5,646 6,145 5,221 5,187 268,540 281,450 243,620 Number of employees 268,220 254,000 Includes FirstNet reimbursements of $1,429 in 2018. $279 in 2017 and $0 in 2016-2014 (see Note 19). Percent Change 2018 VS. 2017 VS. 2017 2016 2018 2017 2016 (3.8)% (2.5)% 2.9 13.5 $144,631 18,941 7,652 1,740 1.191 (3.399) 170,756 Operating Revenues Communications WarnerMedia Latin America Xandr Corporate and other Eliminations and consolidation AT&T Operating Revenues Operating contribution Communications WarnerMedia Latin America Xandr Segment Operating Contribution $150,378 430 8,269 1,373 1.279 (1.183) 160,546 $154,232 418 7,283 1,333 1.731 (1.211) 163.786 (7.5) 26.7 (6.9) 3.0 (26.1) 2.3 (2.0) 6.4 1.8 32,262 5,695 (710) 1,333 $ 38,580 31,685 62 (266) 1,202 $ 32,683 32,437 96 (661) 1.233 $ 33,105 (2.3 (35.4) 59.8 (2.5) (1.3)% 10.9 18.0% The Latin America segment accounted for approximately 4% of our 2018 total segment operating revenues compared to 5% in 2017. This segment provides entertainment and wireless services outside of the U.S. This segment contains the following business units: Vrio provides video services primarily to residential customers using satellite technology. Mexico provides wireless service and equipment to customers in Mexico. The Xandr segment accounted for approximately 1% of our total segment operating revenues in 2018 and 2017 and 3% of our 2018 total segment operating contribution as compared to 4% in 2017. This segment provides advertising services. These services utilize data insights to develop higher-value targeted advertising. RESULTS OF OPERATIONS Consolidated Results Our financial results are summarized in the following table. We then discuss factors affecting our overall results for the past three years. Additional analysis is discussed in our "Segment Results" section. We also discuss our expected revenue and expense trends for 2019 in the "Operating Environment and Trends of the Business" section. Percentage increases and decreases that are not considered meaningful are denoted with a dash. Certain prior period amounts have been reclassified to conform to the current period's presentation. Percent Change 2018 vs. 2017 VS. 2017 2016 2018 2017 2016 $152,345 18,411 170.756 $145,597 14,949 160.546 $148.884 14.902 163,786 4.6% 23.2 6.4 (2.2)% 0.3 (2.0) 1.6 Operating revenues Service Equipment Total Operating Revenues Operating expenses Operations and support Depreciation and amortization Total Operating Expenses Operating Income Interest expense Equity In net Income (Loss) of affiliates Other Income (expense) - net Income Before Income Taxes Net Income Net Income Attributable to AT&T 116,230 28,430 144,660 26,096 7,957 (48) 6,782 24,873 19,953 $ 19,370 116.189 24,387 140,576 19,970 6,300 (128) 1,597 15,139 29,847 $ 29,450 114,396 25,847 140.243 23,543 4.910 98 1,081 19,812 13,333 $ 12.976 16.6 2.9 30.7 26.3 62.5 (5.6) 0.2 (15.2) 28.3 47.7 (23.6) 64.3 (33.1) (34.2)% -%