Verizon vs Att

Using this calculation method, Verizon has a free flow cash rate of $13,536B and Sprint has a rate of $561M. This is a substantial difference in the amount of cash each company has to re-invest. We will also look at cash on hand for each company. I referenced the consolidated balance sheet and found in the assets that Verizon has $13,362B in cash and cash equivalence while Sprint has $5,447B listed. As we can see, Verizon is definitely in a much better position with regards to cash on hand. A couple of other interesting items on cash flow, Verizon has a item of dividends paid, Sprint does not, Sprint has additional income from issuance of common stock, where Verizon does not. This items would indicate to me that Sprint is in need of more cash.

I made an equation for both companies and graphed them both together. They both intersect in (550,125), but befor that intersection AT&T is better, after that intersection Verizon is better. The equation for Verizon is y=.10x+70 AT&T is y=.20x+15

Verizon has gone through many changes in the last few years. The communication industry is extremely competitive and this company would not have had a chance of forming at all, except for the government ordered breakup of AT&T in 1984. Their targeted areas of communication are cellular, paging and PCS services for corporate and individual customers. They have been trying to expand their business for corporate local goods and services.

My plan to figure out this problem is to first make an equation for each company.. After figuring out the equation, I am going to use the website desmos.com to figure out my graph for each of the two companies. After I get my graph, I am going to figure out which of those two companies which are either AT&T and Verizon.

Verizon is a major telecommunication provider in the United States. The company is the market leader, with $110 billion revenue and $2.4 billion in profit (MSN Moneycentral, 2012). Verizon has steady revenue streams that are largely based on a subscription model. It has several business segments, including wireless (63.3% of revenues) and wireline (36.7%) (2011 Verizon Annual Report). Most of this report will therefore focus on the wireless business, not only because this is the largest business that the company operates but because it is a rapidly growing and evolving business as well, a function of the rapid pace of smartphone adoption in America.

Ratio analysis: Perform trend and ratio analysis on current and fixed assets, current and long term liabilities, owner’s equity, sales revenues, EBIT, net income, and earnings per share. Project these trends

Verizon wireless is a joint venture between U.S. based Verizon communication and U.K. multinational giant

Verizon's financial position is not very impressive. The company has $49 billion debt load. Moreover the Gross Profit Margin of 2003 has decreased to 0.67, which was 0.70 in 2002 (financial/accounting).

Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories,

In its 2012 annual report the company states “innovation in networks is the foundation for growth across the whole industry.” Therefore, Verizon has not only developed strong partnerships aimed at enhancing services; the company has also expanded into the digital healthcare industry, reduced reliance on energy usage, and will continue to expand vertically to other industries where their technologies can influence social change.

Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company.

“Content creators and advertisers are hungry for more alternatives,” Verizon’s chairman and CEO Lowell McAdam said. “Verizon intends to be a significant player in this space.” As growth in traditional telecom business get slower every year, Verizon has decided to venture in to the content business with acquisitions of AOL and Yahoo.

Financial ratio analysis is a valuable tool that allows one to assess the success, potential failure or future prospects of the company (Bazley 2012). The ratios are helpful in spotting useful trends that can indicate the warning signs of

Ratio analysis is generally used by the company to provide some information on how the company has performed during that year, so that the parties involved including shareholders, lenders, investors, government and other users could make some analysis before making any further decision towards that particular company. As mentioned by Gibson (1982a cited in British Accounting Review, 2002 pg. 290) where he believes that the use of ratio analysis is such an effective tool to evaluate the company’s finance, and to predict its future financial state. Ratios are simply divided in several categories; these are the profitability, liquidity, efficiency and gearing.

AT&T was broken up into the Bell companies in “1974 by the U.S. Department of Justice antitrust suit against the monopoly” (From Wikipedia, the free encyclopedia). Today AT&T has become a competitor vying for control of the telecommunications industry. “In monopolistic competition, there are many firms vying for control of one market. Each firm offers a different type of product, as opposed to perfect competition in which all offer the same product. Each firm, then, has a monopoly in the market of their own product”(Oracle ThinkQuest Education Foundation) AT&T in 1988 began purchasing stock in Sun Microsystems to begin its diversity in product services. Throughout the 90s AT&T continued purchasing more computer companies and cell phone companies to gain market share in the growing telecommunication industry (CyberStreet). Good pricing structures align with costs. AT&T Wireless realized that the marginal cost of a cellular minute was small compared to the cost of acquiring and maintaining customers. Their switch to a flat fee “One-Rate” plan was a huge success, stealing heavy users away from the competition. Prices increased for light users and many became hooked on the cellular lifestyle (Lake Partners Strategy Consultants, Inc. [LPSCI], 2001-2004). AT&T has seen that the ability to change quickly in the ever-evolving telecommunications market will help in gain market share. Its ability to see the value in keeping customers rather