Debt has increased by 7 billion so far in 2023. Watch they’ll mention net debt which is debt minus cash and cash equivalents. Why is debt increasing so fast when our stated # 1 goal is to reduce the debt and at a time where borrowing rates are terrible. Doesn’t make sense and is scaring me. Can somebody smarter than me please explain this?
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While I don’t wish for this outcome, I’m curious why wouldn’t they opt to both reduce the dividend further and freeze the pension?Wouldn’t this result in significant cost savings?
I believe it is illegal to freeze pensions unless a bankruptcy if filed.
C-suite employees are required to hold up to 3 times their salary in company stock, per their employment contracts.
Just cook the books.
Our true debt isn’t really known. It’s all manual work before balance sheet/journal entries. Accounting is only human and some items may get recorded erroneously or maybe not. But there’s no way our accounts payables equate to real financial obligations. fancy accounting & execs only review via PowerPoint.
The only way out is to cut the dividend and invest it in fiber. You’ll have to keep the employees to install all that fiber. This is the way. There is no other solution.
Debt is spread over 53 years as I recall.
But not all of it. Whatever comes due now will require more interest to float in the market.
There's our real "true north."
T just isn’t cutting labor costs at an appropriate pace. There are too many mouths to feed
two thoughts: C-suite owns a large amount of stock and now has some worthless stock options. https://www.investopedia.com/articles/insights/052516/top-4-att-shareholders-t.asp top 3:
Randall L. Stephenson owns a total of 1,410,637 AT&T shares, representing 0.02% of the company's total shares outstanding.
John J. Stephens owns a total of 553,457 AT&T shares, representing 0.01% of the company's total shares outstanding.
William A. Blase owns a total of 246,839 AT&T shares, representing less than 0.01% of the company's total shares outstanding.
And others. Protect the share owners looks like protect the top team.
AT&T supported the conservative news network instead of investing. T was even sued for stopping their advertising. The debt was pre-Biden. The interest rate is outside my knowledge.
: @exx+1o3vcXsB - “ The company who pioneered the telephone and connected people can't figure out remote work. How sad is that?”
I agree with you. But it’s no longer at&t. It’s SBC… therein lies the problem…
Get a loan for $85 billion dollars then tell me how easily you can afford the interest payments.
While I don’t wish for this outcome, I’m curious why wouldn’t they opt to both reduce the dividend further and freeze the pension?Wouldn’t this result in significant cost savings?
"Doesn’t make sense and is scaring me. Can somebody smarter than me please explain this?
Because the d-mb ba----ds running the company don't know what they are doing and have not for a long time.
It's called "Bindenomics".
They can’t cut that much labor they’ll have to cut capex and possibly even the dividend.
Long term debt doesn’t not go against FCF since it can be paid at a later date. An accounting loophole i suppose but obviously the institutional investors know better. It won’t help Big John one bit.
Doesn’t make sense and is scaring me
High interest rates and crashing stock. Unless AT&T patents some kind of novel miracle, there's pretty much no hope in saving the company. Not under stubborn Stankey.
If Stankey wanted to attract top talent, he would embrace remote work, cut out the slackers at the top, and raise the salaries of those actually holding up the company. As it stands right now, AT&T's compensation package is pi-s-poor relative to the market.
If he wanted to make the business competitive again, he would also completely rework our target audience, bundle Hulu with our service, ditch the hidden fees, and focus on being a strong security-first business - something T-Mobile has been failing to do ever since John Legere left.
The gaps are there, but AT&T fails to seize the moments. That is why I have very little faith in leadership and think the debt will (eventually) ki-l the company. Stankey and co. are completely out of touch with modern reality, and we are paying the price for it.
The company who pioneered the telephone and connected people can't figure out remote work. How sad is that?
They had to borrow more money to pay 2Q2023 dividends to stockholders. Most employees don't realize how bad of financial shape at&t is in, it's desperate.
It's called "faking free cash flow".
Does it have to do with the interest rates increasing? If we are only making minimum debt payments, then debt is going to increase even without adding more debt. Works the same as credit cards