Verizon Communications, Inc.
2012 SEC 10-K Annual Reports Analysis Project
November 30, 2013
Accounting for Non-accounting Managers
Research -Draft-
Full citations and credits pending… Source data sites provided
Table of Contents Executive Summary 3 History of the Company 3 Industry Overview 4 Summary 4 Competitive Landscape 5 Financial Data Verizon Communications Inc. and Subsidiaries 5 Financial Analysis of Key ratios 6
Asset Productivity Ratios 6
Financial Strength Ratios (Liquidity) 6
Profitability Ratios 7 Challenges and Accomplishments 2011 - 2012 8 Conclusion 9 VZ Ownership Summary 9 Appendix 1 Asset Productivity Ratios 9
Inventory turnover ratio 9
Fixed asset turnover ratio 9
Total
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Unambiguously, my current assignment sparked the interest to use Verizon as my research subject. My objective in researching Verizon’s financial statements was gaining a better understanding of the company’s short and long term goals, once again the old adage "Study the past if you would define the future...” has proven to be correct. As I embarked on this journey, I reviewed the requirements, after selecting Verizon, and subsequently realized that my choice was not a “traditional” manufacturing entity; as such I focused my analysis on key types of financial ratios. My analysis will discuss Verizon’s performance as it relates to Asset Productivity, Financial Strength, and Profitability. Through my research, paired with the course’s content my initial impression of this project changed, as did my appreciation for the role of the Verizon’s Financial Management team.
I will also answer the question: Why I would or would not buy their stock if I was an investor?
History of the Company
Verizon Communications started in 1983 as Bell Atlantic (based in Philadelphia) with a footprint covering New Jersey to Virginia and emerged as part of the 1984 breakup of AT&T into seven "Baby Bells." In 1997, Bell Atlantic merged with another Regional Bell Operating Company, NYNEX, based in New York City with a footprint spanning from New York to Maine. The combined
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.
The impact of a company’s financial statement depends mainly on the company’s business strategy; both transactional and operational, its industry profile and the nature of its competitive environment. This report analyses 15 ratios of JB Hi-Fi’s financial performance and suggests a recommendation for investors.
Consolidated Papers INC. "Annual Report to Stockholders. " 18 Apr. 1995. SEC Filings. LexisNexis. Rod Library, Cedar Falls. 15 Feb. 2009. Keyword: paper.
- Processes - In many ways, Verizon is still three companies (Bell Atlantic, Nynex, and GTE). Although Verizon has consolidated and standardized some of their processes, there is still a lot of room for improvement.
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Verizon wireless is a joint venture between U.S. based Verizon communication and U.K. multinational giant
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In the previous project assigned to me, I completed a SWOT analysis of Sirius XM Radio where it was noted that the Sirius XM is firmly at the top of its industry. For the purposes of this project, I went through the financial statements of Sirius XM as well as computed several key financial ratios to indicate Sirius XM’s profitability, growth, performance, and efficiency amongst other things. I then compared these ratios to the industry averages as well as with Sirius XM’s top competitors. After completing this close analysis, I found that although Sirius XM is enjoying incredible growth and a strong place in the market, there are still several flags that an investor should still note.
The Verizon Communication Company deals with the sale of products like mobile and fixed telephone and offers broadband wireless internet services in America. It was founded in 1984 as Bell Atlantic and later changed the name to Verizon Company after merging with GTE in 2000 (Sbeit, 2008).
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
In this report we will identify business risk that AT&T experienced due to their divestiture in 1982. We will conduct our analysis based on financial concepts, and finally recommend necessary actions that should have been conducted when the company formulated its financial policy in 1983.
A financial analysis of Ford Motor Company’s (Ford) statements will identify their solvency in today’s automobile market. Elements such as liquidity, leverage, profitability, and activity ratios will demonstrate Ford’s financial health and stability. A further assessment of their technological advantages, global strategies, and benchmarking analysis will indicate the future prognosis of this company.
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The financial reports are in the business tools (such as Boston Matrix and Ratio Analysis) to evaluate the firm and to decide a course of action. Non- financial tools such as the SWOT and marketing and promotion mix were also used.