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Comparing AT&T and Verizon financially
Analyze and compare Verizon and AT&t
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Analysis of Verizon Communications Verizon Communications formed by the merger of two big and successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunication company. The company serves large part of the market in United States. However the company faces certain strengths and weaknesses which affect the way company formulate its strategies. Internal Analysis: The IFE (Internal Factor Evaluation) matrix summarizes the major strengths and weaknesses of Verizon Communications. KEY INTERNAL FACTORS WEIGHTS RANKING SCORE Strengths 1. Employee satisfaction. .05 3 .15 2. Well positioned company. .15 3 .45 3. Increase in revenue and EPS. .10 3 .30 4. Offering fiber-optic lines. .20 4 .80 5. Largest directory publisher. .05 4 .20 Weaknesses 1. Not much emphasis on R&D. .05 3 .15 2. Not yet achieved its goal. .05 2 .10 3. Global coverage. .10 3 .30 4. Poor financial position. .20 4 .80 5. Technological competencies. .05 2 .10 TOTAL 1.00 3.35 Strengths 1. Verizon communications has announced salary raise and job security for their employees which will result into increase in employee morale (management). 2. Verizon serves 49 out of the top 50 markets in United States which implies that the company is well positioned among its competitors (marketing). 3. There is increase in the company's revenue and Earnings per share (EPS) which will attract investors to invest their money in the company (finance/accounting). 4. Verizon's plan to offer extended fiber-optic lines to homes and businesses will give the company competitive advantage against cable companies (production/operations). 5. Verizon Communications is the largest telephone directory publisher in the world. Weaknesses 1. Veri... ... middle of paper ... ...s an insignificant change in Avon's sale figures (finance/accounting). FINANCIAL RATIOS FINANCIAL RATIOS 2002 2001 Liquidity Ratios Current Ratios 1.03 1.29 Quick Ratios 0.72 0.87 Leverage Ratios Debt to Total Asset Ratio 1.03 1.02 Debt to Equity Ratio -27 -43.3 Long Term Debt To Equity Ratio 0.23 0.38 Times Interest Earned Ratio 16.06 9.7 Activity Ratios Inventory Turnover 10.03 9.72 Fixed Asset Turnover 3.98 3.84 Total Asset Turnover 1.85 1.87 Accounts Receivable Turnover Average Collection Period Profitibility Ratios Gross Profit Margin 0.14 0.12 Operating Profit Margin 0.13 0.11 Net Profit Margin 0.08 0.07 Return On Total Assets 0.16 0.13 Return On Stockholders' Equity 0.16 0.13 Earnings Per Share 2.26 1.87 Price-Earning Ratio Growth Ratios Sales 0.03 Net Income 0.2 Earnings Per Share 0.2 Dividend Per Share
Verizon Wireless cellular service is inelastic because the products and services it offers makes them the dominant leader in the wireless industry; therefore, a 10% change in calling plan prices (monthly access fees) would not affect the quantity demanded. Verizon Wireless can depend on this inelasticity in their pricing model because of the strength of its brand and the wealth of products and services it offers. Verizon Wireless' competitive advantage comes from its ultra-low churn rate (the percentage of customers who disconnect their service is less than one percent of its 60 million customer base). This indicator suggests that customers are satisfied with the service Verizon Wireless offers and a slight price increase probably would not drive its customers to the competition. This data also suggests that customers probably stay with Verizon Wireless because of its continued expansion of new technologies and services such as its all-digital nationwide CDMA network, EVDO' or its advanced data network (used to wireless send and receive email and other data almost anywhere in the US), and VoIP (Voice over Internet Protocol) that they use for their Push to Talk products. Verizon Wireless markets to a nearly all demographics nationwide and most of its services are offered in the smaller rural markets as a direct result of the one billion dollars per quarter it spends on improving its network as well as acquiring smaller wireless networks to make their nationwide network stronger and larger.
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.
The mission that Verizon Wireless pursues is as a leader in communications, Verizon's mission is to enable people and businesses to communicate with each other. We are also committed to providing full and open communication with our customers, employees and investors. That’s just the beginning on their home page. Verizon has other values like customers first because they are ultimately the people that make them. Integrity always at the heart of everything they do. Respect is the critical component at every level of business. Performance Excellent Verizon holds itself to high standard of performance. Accountability holds each other responsible. “Great Companies are judged by what they do, not by what they say” Verizon Wireless
AT&T’s roots stretches all the way back to 1875, when Alexander Graham Bell created the first telephone. The main reason AT&T was created was to exploit the creation of the telephone. AT&T became a parent company to the Bell system, which was a phone company monopoly. They created a long distance telephone network that went from New York to Chicago and then on to San Francisco. Then in 1984 AT&T split into eight different phone companies. They built out to Denver in 1899 and then they hit a rough patch, the signal wasn’t too strong. Luckily, AT&T created the first practical electrical amplifier in 1913. And this made transcontinental communication possible. Bell’s patent expired in 1894 and only Bell telephone could only legally operate in the U.S. The number of telephones grew as phone wires spread across the nation, there where about 3,317,000 phones. The only downside to this early story is that, only phones with the same phone company could contact each other, this was being fixed in 1913. In 1925 there was a new president, Walter Gifford, he sold International Western Electrical Company to the ITT for 33 million to make AT&T universal. In January 1, 1984 was changed and revitalized, it no longer was the bell system. It had a new global icon, as you see today. IN 1984 AT&T carried around 37.5 million calls a day. CEO, Robert Allen, announced that on Septemb...
In conclusion, current trends and significant events concerning T-Mobile were examined. A hard look was given to the economy, demographics, technology, political and legal issues, and social characteristics. T-Mobile is strong across the board, with surprising statistics backing up a variety of topics. The economy is strong, the demographics are not far-fetched, technology is improving, there’s no huge political or legal scandal, and T-Mobile is socially strong.
Corporation like Sprint Wireless provider industry which provides cell phone coverage and data. Sprint is one of the largest corporations in the U.S with competitors such as Verizon and AT&T. Sprint has a lot of control in the wireless provider market. Being Independent Corporation, still has to considerate the reactions of their competitors before making business decisions such as chan...
Upon the acquisition and merger of legacy AT&T Wireless by Cingular Wireless and the solidification of SBC, BellSouth and Cingular Wireless, the New AT&T mobility business unit now leads in the current market share narrowly over Verizon Wireless.
Global ethical issues for Verizon would be global ethical risks, antitrust activity, internet security and privacy, issues with compensation and labor and the right to work. The global ethical risks that Verizon could encounter are the instability of working with foreign markets. The foreign market could have an unstable economy, social unrest or political instability.
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
Employee motivation is one of the keys to success in any business, especially in a retail sales environment. It is particularly important to understand how employee motivation can be impacted by the strengths and weaknesses of AT&T’s retail sales consultant position (RSC). A series of interviews and surveys were conducted over a two-week period with employees of AT&T in the RSC position as well as retail management positions to determine how the employees really feel about this position as well as internal strengths and weaknesses that contribute to employee motivation. Although there are a lot of positive factors that keep the employees motivated within AT&T, there are some weaknesses that can cause employees to become demotivated.
The telecommunications industry is of vital importance to the development of the information-based economy. AT&T need to supply access to cost efficient, timely and innovative telecommunications services.
...ccurately reflects the intrinsic value of the company from the shareholders point of view and their expectations of future earnings.
areas in only the southeast and western parts of the United States. Its recent merge with AT&T
Vodafone are a multinational cooperation who retail in telecommunication services. They were originally set up in the United Kingdom in 1984, and since then they have expanded globally and have been recognised as ‘the second largest telecommunications company in the world’ with revenue spanning over $46 billion (as of 2012).
If they company thinks that the earning will fall, stocks will decrease; deterring from investors losing money these types of