Company Profile: AT&T ( T) is a holding company whose subsidiaries and affiliates provides wireless and wireline telecommunications services and equipment as well as directory advertising and publishing services in the United States and internationally. Liability Adjusted Cash Flow Yield: 4.20% Dividend Yield: 5.90% Dividend Acid Test: Fail TheStreet Ratings' Grade: Buy (A-) -- AT&T's gross profit margin for the third quarter of its fiscal year 2011 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AT&T has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow. During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.