FINANCIAL ANALYSIS

Financial Analysis

Financial Ratio and Trend Analysis

Verizon

Verizon is the leading provider of solutions and IP telephony services for small and medium company, recognized for the quality of our product, labor and capital excellence human service to the customers. In the second half of 2008, Verizon launched FiOS TV for Business, a new subscription-television service designed for small and medium-sized businesses, delivered exclusively by Verizon's advanced all-digital, 100% fiber-optic network. Subsequently, Verizon Business and Virtusa teamed up to develop an innovative approach to the management of information technology (IT) assets.

Subsequently, Verizon Business partnered with GXS, a global provider of B2B e-commerce solutions to provide supply chain management solutions. During the year, Verizon Wireless acquired Rural Cellular, a wireless communications service provider operating under the trade name of Unicel. Verizon Business started activating Private IP nodes in the major Indian business centers of Bangalore, Chennai, Hyderabad, Mumbai and New Delhi, in the year. Subsequently, Verizon Business teamed up with Nortel to deliver new managed telepresence service.

In January 2009, Verizon Wireless acquired Alltel from Atlantis Holdings, an affiliate of private investment firms TPG Capital and GS Capital Partners. In February 2009, Verizon Business rolled out a new portfolio of converged solutions that address the security and performance challenges faced by large corporations. In the same month, Verizon teamed up with FusionOne, a provider of mobile phone content portability services, to develop and offer consumer and business services using FusionOne's new multi-service sync technology.Verizon Business was awarded a Department of Defense (DoD) contract valued at $2.5 billion in March 2009. In September 2009, the company won two contracts from Virgin Blue Airlines and Leaseplan to provide Application development and support and data center outsourcing services (Colbert 2002).

T-Mobile

Deutsche Telekom is a telecommunications provider that provides its customers a portfolio of services in the areas of telecommunications and information technology. Co. had four operating segments: Germany, United States, Europe, and Systems Solutions, as well as on Group Headquarters and Shared Services. Co. provides digital mobile voice and data services to consumers and business customers, and also sells hardware and other terminal devices in connection with the services provided. Co. also provides fixed-network services, broadband Internet access, multimedia services, as well as information and communications technology services.  

Financial Ratio Analysis

Ratios  

T-Mobile

Verizon

 

2010

2010

Profitability Ratios

 

 

ROA % (Net)

1.33

1.14

ROE % (Net)

4.56

6.36

ROI % (Operating)

5.14

15

 

 

 

Liquidity Ratios

 

 

Quick Ratio

0.45

0.62

Current Ratio

0.58

0.73

 

 

 

Debt Management

 

 

Total Debt to Equity

1.33

1.37

Interest Coverage

1.81

6.02

 

 

 

Asset Management

 

 

Total Asset Turnover

0.49

0.48

Receivables Turnover

9.15

8.75

Inventory Turnover

28.76

25.82

Accounts Payable Turnover

9.58

25.76

Profitability Ratios

Profitability ratios are those ratios that cover all the ratios that compare the profits of a period with certain items of Income Statement and Balance. Their results materialize efficiency in the management of the company, i.e. how managers have used the resources of the company. They are widely used to assess the financial - economic activity of enterprises of all industries (Vandyck, 2006). This is one of the most important indicators in assessing the activity of the enterprise that reflect the profitability of the enterprise.

This is considered as the very important tool for the measurement of profit for the ...