This all being said, Verizon is worth the hype. All of their numbers are increasing at a steady and constant rate with no dismal future in sight. Here are a few short analyses of what financial accounts are supporting Verizon:
- Profitability Ratios: This ratio varied from industry to industry. Some company that have an overall profit margin of 25% might seem relatively low. However, if we compared it to other company in the same industry with a profit margin of 16%, that 25% doesn’t seem as small. Same can be said with Verizon, their profit margin came to be 14%. The telecommunication industry average is at 11%. This indicated that Verizon is doing well, their profit margin grew steadily from 2013-2015. To further support our claims, …show more content…
Verizon’s Long-Term Debt continued to grow from 0.698 in 2013 to 0.86 in 2015. This explained why their Long-Term Debt Equity was also high, their highest was in 2014 at 8.988 but in 2015 they manage to drop it to a 6.31. While T-Mobile maintained their Long-Term Debt at a constant 0.54, 0.51, and 0.55 (2013-2015 in that respective order). Even T-Mobile Debt/Equity ratio was steady at 1.0-1.2. Verizon has an aggressive leveraging practices that might looked upon as a company that take on more liabilities than equity. Nevertheless, it might be a tactic that Verizon is trying to aim for. In other words, “the higher the risk, the greater the …show more content…
In the inventory turnover ratio, we discovered that this ratio can be compared to the industry average to find out if the company is doing well. Currently, communication services inventory is averaging about 44.16 . Verizon inventory turnover remain at 41.8 in 2013 and 45.6 in 2015. T-Mobile inventory turnover was relatively good in 2013 at 47.3 but their number has been dropping from 26.30 in 2014 and in 2015 is at 13.73, which is consider low. T-Mobile inventory turnover seem to support the number in the average collection paid ratio because it is significantly high. The highest was from the last quarter in 2015 at 68.2, seemed like T-Mobile is struggling to collect from their customers. Verizon average collection paid is about 38.1 in 2013 and 38.8 as of 2015. As you can see Verizon seem to be more efficient than T-Mobile, maybe if T-Mobile can manage their account receivable, the number of average collection paid might increase their inventory
- Profitability Ratios: This ratio varied from industry to industry. Some company that have an overall profit margin of 25% might seem relatively low. However, if we compared it to other company in the same industry with a profit margin of 16%, that 25% doesn’t seem as small. Same can be said with Verizon, their profit margin came to be 14%. The telecommunication industry average is at 11%. This indicated that Verizon is doing well, their profit margin grew steadily from 2013-2015. To further support our claims, …show more content…
Verizon’s Long-Term Debt continued to grow from 0.698 in 2013 to 0.86 in 2015. This explained why their Long-Term Debt Equity was also high, their highest was in 2014 at 8.988 but in 2015 they manage to drop it to a 6.31. While T-Mobile maintained their Long-Term Debt at a constant 0.54, 0.51, and 0.55 (2013-2015 in that respective order). Even T-Mobile Debt/Equity ratio was steady at 1.0-1.2. Verizon has an aggressive leveraging practices that might looked upon as a company that take on more liabilities than equity. Nevertheless, it might be a tactic that Verizon is trying to aim for. In other words, “the higher the risk, the greater the …show more content…
In the inventory turnover ratio, we discovered that this ratio can be compared to the industry average to find out if the company is doing well. Currently, communication services inventory is averaging about 44.16 . Verizon inventory turnover remain at 41.8 in 2013 and 45.6 in 2015. T-Mobile inventory turnover was relatively good in 2013 at 47.3 but their number has been dropping from 26.30 in 2014 and in 2015 is at 13.73, which is consider low. T-Mobile inventory turnover seem to support the number in the average collection paid ratio because it is significantly high. The highest was from the last quarter in 2015 at 68.2, seemed like T-Mobile is struggling to collect from their customers. Verizon average collection paid is about 38.1 in 2013 and 38.8 as of 2015. As you can see Verizon seem to be more efficient than T-Mobile, maybe if T-Mobile can manage their account receivable, the number of average collection paid might increase their inventory