ratios - Versus Finance 326 Project Part 1 Table of...

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Versus Finance 326 Project Part 1 Table of Contents Overview .......................................................................................................................................... 3 1 | P a g e
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Ratio Analysis .................................................................................................................................. 8 Liquidity Ratios ........................................................................................................................... 8 Debt Management Ratios .......................................................................................................... 10 Asset Management Ratios ......................................................................................................... 13 Profitability Ratios ..................................................................................................................... 16 Market Valuation Ratios ............................................................................................................ 19 DuPont Analysis ............................................................................................................................ 21 Appendix ........................................................................................................................................ 28 References ...................................................................................................................................... 36 2 | P a g e
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1) Overview Verizon is a company based in New York which was founded in the year 2000. They are a communications company and are in the business of provide Internet, TV, Phone and Cellular services. Their Cellular devices have an LTE service that allows phone calls, messaging, data services and access to the internet wherever there is service. They provide a service of high-speed FiOS internet and TV. They are one of the biggest competitors in the market in each of those categories. According to forbes.com, Verizon is the 21st most valuable company in the world. Its only competitor in the telecommunications field that is more valuable than them is AT&T at number 12. Here I am going to state a brief timeline of their history. First, Bell Atlantic merged with GTE and changed its name to Verizon Communications Inc. thus creating Verizon in 2000. In the year 2002 Verizon launched 3G wireless network. This gave users a high-speed wireless service in order to surf the web, stream videos and music, and download files on the go. In 2004, Verizon joins Dow Jones Industrial Average, due to its size and how quickly growing the industry was. In 2005, Verizon introduced FiOS all-fiber broadband TV service. In 2008, Verizon invests in a new nationwide wireless spectrum called LTE (long term evolution.) In 2009, Verizon partners with google, further advances it’s 3G and Android platforms. In 3 | P a g e
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2010, Verizon launches its 4G LTE network. In 2015, Verizon completes its purchase of AOL further expanding its company. (All of these facts were taken from Verizon.com) AT&T has roots back to 1875 with the original telephone. They were a part of the Bell System that was the original telephone monopoly. The Bell System provided one of the best telephone systems in the world at that time. The system broke up into eight companies in 1984 because of an agreement between AT&T and the U.S. Department of Justice due to their monopoly. Today they have cellular devices and are one of the largest telecommunications company in the world. Their Cellular devices have an LTE service that allows phone calls, messaging, data services and access to the internet wherever there is service. They are based in Dallas, Texas. In the past three years alone AT&T has made some major purchases. They bought Direct TV in 2014. They also purchased Iusacell and NII Holdings in 2014 and 2015. AT&T eventually merged the two companies to increase their coverage and create AT&T Mexico. 4 | P a g e
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0 5 10 15 20 25 30 35 40 AT&T Stock Prices Date Price 0 10 20 30 40 50 60 Verizon Stock Prices Date Price 5 | P a g e
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0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 S&P 500 Price -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% AT&T Return Date Return 6 | P a g e
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-15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% Verizon Return Date Return -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% S&P 500 Return Date Return 7 | P a g e
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2) Ratio Analysis Liquidity Ratios Current ATT 2015 ATT 2014 VRZ 2015 VRZ 2014 Industry Current Assets
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