Verizon Case Study 2014

Based on Table 2.1, in Appendix 2, the calculated current ratio “CR” was 63.56% for Verizon in 2015 and 105.40% in 2014. However, the average for the five years was 1.2215. According to Plunkett Research Ltd (2015), the average in the industry, based on 54 companies, became 97.17% in 2014. Further, its competitors including BT Group plc, Deutsche Telekom AG, and NTT DOCOMO, Inc., pointed out current ratios of 0.97, 0.96 and 2.17 respectively. Therefore, Verizon performs efficiently above the industry in terms of having sufficient financial resources to cover its obligations. Consequently, it can support its short-term obligations with its present existing liquid assets (Plunkett Research Ltd, 2015). Based on Table 2.3, in Appendix 2, …show more content…
These ratios show that Verizon almost doubled its profit than the industry from 20122 to 2015. Based on Table 2.4, in Appendix 2, the firm showed a calculated return on equity ROE of 1.0299 or 102.99%in 2015 and 0.8742 or 87.42% in 2014. Nonetheless, the average ROE from 2011 to 2015 was 0.4786 or 47.86%. Further, the industry points out a ROE of 18.89%, as of 03/28/2017 according to Fidelity (2017). In fact, Some of its major competitors such us BT Group plc, Deutsche Telekom AG and NTT DOCOMO Inc represent, respectively, an REO of 264.23%, 11.07% and 7.62% in 2015. Thus, Verizon is very competitive in terms of generating sufficient returns for the shareholders (Fidelity, 2017). Moreover, Table 2.4, in Appendix 2, shows that Verizon has a calculated return on assets “ROA” of 7.51% in 2015 and 5.14% in 2014. However, the average ROA of Verizon for the five years constituted 6.07%. Further, Plunkett Research Ltd (2015) revealed that the industry has a ROA of 11.42% in 2014. Therefore, Verizon performed less than the industry from 2011 to 2015 in generating profits from in assets (Plunkett Research Ltd,