View the step-by-step solution to:

Question

Help me evaluate and compare AT&T & Verizon company's performance and financial position.

/>


AT&T (GROWTH RATE)

Growth Rate % Company Industry

Sales (Revenue) Q/Q (Last Year) -2.52 -1.41

Net Income YTD/YTD (Last Year) 103.20 -20.53

Net Income Q/Q (Last Year) -21.58 3.83

Sales (Revenue) 5-Year Annual Average 5.81 -

Net Income 5-Year Annual Average 0.25 -


VERIZON (GROWTH RATE)

Growth Rate % Company Industry

Sales (Revenue) Q/Q (Last Year)    0.88 -1.41

Net Income YTD/YTD (Last Year)    16.40 -20.53

Net Income Q/Q (Last Year)   5.48   3.83

Sales (Revenue) 5-Year Annual Average      1.66                        -

Net Income 5-Year Annual Average                            6.20             -


AT&T (PROFITABILITY)

Profit Margins (%) Company Industry

Gross Margin 53.49 56.62

Pre-Tax Margin 14.57 10.91

Net Profit Margin 11.26 7.39

Average Gross Margin 5-Year Annual Average 53.34 56.37

Average Pre-Tax Margin 5-Year Annual Average 11.74 10.58


VERIZON (PROFITABILITY)

Profit Margins (%)                                                    Company Industry                                                 

Gross Margin    57.81 56.62

Pre-Tax Margin     15.00 10.91

Net Profit Margin     12.26 7.39

Average Gross Margin 5-Year Annual Average      58.97 56.37

Average Pre-Tax Margin 5-Year Annual Average        16.32 10.58


AT&T (FINANCIAL HEALTH)

Financial ratios                                                    Company Industry               

Debt/Equity Ratio 0.84 1.01

Current Ratio 0.74 0.88

Quick Ratio 0.76 0.83

Leverage Ratio 3.00 2.96

Book Value/Share 25.06 0.87


VERIZON (FINANCIAL HEALTH)

Financial ratios                                                      Company Industry               

Debt/Equity Ratio 1.73 1.01

Current Ratio 0.89 0.88

Quick Ratio 0.88 0.83

Leverage Ratio 4.83 2.96

Book Value/Share 14.25 0.87


AT&T (PRICE RATIOS)

Price Ratios Company Industry

Current P/E Ratio 18.33 18.33

P/E Ratio 5-Year High 27.17 -

P/E Ratio 5-Year Low 10.40 -

Price/Sales Ratio 1.67 1.36

Price/Book Value 1.55 1.82


VERIZON (PRICE RATIOS)

Price Ratios Company Industry

Current P/E Ratio 15.49 15.49

P/E Ratio 5-Year High 19.35             -

P/E Ratio 5-Year Low 10.58     -

Price/Sales Ratio 1.91 1.36

Price/Book Value 4.70 1.82


AT&T (MANAGEMENT EFFECTIVENESS)

Key Metrics Company Industry

Return on Equity % 8.53 9.92

(5-Year Average) (9.87) (9.99)

Return on Assets % 3.08 4.93

(5-Year Average) (3.20) (3.60)

Return on Capital % 3.56 4.92

(5-Year Average) (3.73) (4.92)

Income/Employee 73.98k 10.97k

Inventory Turnover 31.79 19.69



VERIZON (MANAGEMENT EFFECTIVENESS)

Key Metrics Company Industry

Return on Equity %     28.41   9.92

(5-Year Average)    (49.52) (9.99)

Return on Assets %    6.04 4.93

(5-Year Average)   (5.91) (3.60)

Return on Capital %   7.02 4.92

(5-Year Average)    (7.00) (4.92)

Income/Employee    106.96k 10.97k

Inventory Turnover   46.59                      19.69


(1) assess the AT&T's liquidity relative to the industry averages to Verizon

(2) assess the AT&T's solvency relative to the industry averages to Verizon

(3) assess the AT&T's profitability relative to the industry averages to Verizon


NEED TO BE IN ESSAY..

MUST INCLUDE COMPARATIVE DATA AT THE LAST PAGE OF THE WORD DOCUMENT.


Thank you for your help.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Accounting tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors