Understanding a company’s net worth is key to its stakeholders, and that is why we are answering the question, ‘what is AT&T’s net worth?’
As one of the world’s key stakeholders in the telecommunication industry, AT&T’s net worth was $181.3 billion as of September 30, 2021. However, this value is not constant and, therefore, changes from time to time. This is because AT&T is a publicly-traded company. And, as such, AT&T’s net worth is influenced by the value of its shares and liabilities.
AT&T is a mammoth world-renowned corporation, offering telecommunication services. It is also the most prominent mobile telephone services provider in the US. In the Fortune 500 rankings of the largest US corporations, the company was ranked 9th as of 2020.
When you know the net worth of a company, you can determine whether it is worth investing in it or not. In addition, you can establish its financial stability in the marketplace.
The Growth of AT&T
AT&T began in 1878 as the American District Telegraph Company in St. Louis. The company split into 7 smaller corporations known as ‘Baby Bells’ in charge of telecommunications in various regions of the US.
One of the 7 Baby Bells, Southwestern Bell Corporation (SBC), acquired the largest share of AT&T ownership. It also continued to expand its business across the US and bought other companies in the telecommunication sector. As a result, it became a leading telecommunication company in the 2000s.
In 2002, SBC bought its parent company, AT&T, and formed the AT&T Company. Since its inception, the company has expanded exponentially. And in the last 6 years, AT&T Company has consistently appeared on the Fortune Five Hundred list.
Calculating AT&T’s Net Worth
But what is the net worth of AT&T? This is likely the question running through your mind. And you wouldn’t be faulted for asking the question because it is a large corporation. And, as such, it may prove to be a good investment opportunity. However, determining its value is not hard when you know how to source the correct information.
Typically, when calculating a company’s net worth, you only need to know the value of its assets and liabilities. Then, you would deduct the liabilities from the assets to calculate their overall value.
However, since AT&T is a publicly-traded company, its net worth equals its current shareholder equity amount. Shareholder equity is, essentially, the total value of the company’s shares minus its liabilities. And since a company’s share price is variable, its net worth will change over time.
Therefore, AT&T’s net worth is not constant. But as of the quarter ending September 30, 2021, its net worth was $181.3 billion. This was an increase from the company’s net worth in 2020, which was $179.2 billion.
Now you have a better idea of what AT&T’s net worth is. Although it is ever-changing. And from what you have read, it’s clear that AT&T is doing well financially in the US and beyond. The company’s sizeable net worth indicates that the business is stable. Making it a potentially profitable investment opportunity.