...Verizon Communications, Inc. 2012 SEC 10-K Annual Reports Analysis Project November 30, 2013 Accounting for Non-accounting Managers Research -Draft- Full citations and credits pending… Source data sites provided Table of Contents Executive Summary 3 History of the Company 3 Industry Overview 4 Summary 4 Competitive Landscape 5 Financial Data Verizon Communications Inc. and Subsidiaries 5 Financial Analysis of Key ratios 6 Asset Productivity Ratios 6 Financial Strength Ratios (Liquidity) 6 Profitability Ratios 7 Challenges and Accomplishments 2011 - 2012 8 Conclusion 9 VZ Ownership Summary 9 Appendix 1 Asset Productivity Ratios 9 Inventory turnover ratio 9 Fixed asset turnover ratio 9 Total asset turnover ratio 9 Appendix 2 Financial Strength Ratios / Liquidity Ratios 10 Current Ratio 10 Acid-test Ratio 10 Appendix 3 Profitability Ratios 10 Net profit margin 10 Return on Equity (ROE) 10 Return on Assets (ROA) 10 Appendix 10 References 10 Executive Summary The company I selected to research is Verizon Communications Inc., an American telecommunications company. I chose Verizon because I am a current employee, share owner, and more importantly a witness, and contributor of the company’s transformation into a global brand name, and a Fortune 30 company. Verizon is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, government, and wholesale customers...
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...the market will move towards broadband, therefore MCI was a prime target for acquisition. * MCI had reported losses of $4B on $21B sales in 2004 so the shareholder are nervous of the future of the company of its own Potential Acquirers for the target company MCI are Qwest and Verizon. Table 1 provides the summary of all three companies. | Qwest | Verizon | MCI | Business Areas | Wireline, Wireless and Services | Telecom, wireless, services and international | Business Market- Medium and Large Businesses; GovernmentMass market: Residential and small businessInternational: Businesses outside the US | Geographic Coverage | America West and Northwest | 29 US States | Over 200 countries | Revenue | $13.8B with $13.2B from wireline segment | $71B: Telecom: $39BWireless: $28B | $27.3BBusiness Mkt: $14.1BMass Market: $6.4BInternational: $3.9B | Bond Rating | B+ | A+ | B | Table 1: Company Summary M&A Offers and Premium In February 2005, Verizon and Qwest presented their final bids as described below Verizon’s offer: $23.5 per share of MCI stock, $8.75 in cash and $14.75 in Verizon stock; This results in a valuation of $7.6B; Minimum stock exchange ratio will be 0.4062 shares of Verizon stock for each share of MCI....
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...Verizon Communications Inc. Financial Management Analysis Table of Contents Executive Summary 4 Mission Statement 5 Vision Statement 5 History 5 Business Summary 9 Financial 10 Employees 10 Products Offered 11 Wireless 11 Enterprise/Mid-Market Business 12 Key Enterprise Products and Services 12 Residential/ Small Business 13 Key Residential and Small Business Products and Services 13 Community Work 14 Fast Facts 15 Customers and Target Market 15 Financial Ratios Balance Sheet Balance Sheet Financial Analysis Income Statement Analysis Cash Flows Statement and Analysis WACC Calculation Financial Planning Forecast Forecast Analysis Forecasted Balance Sheet and Analysis Forecasted Income Statement and Analysis Conclusion [pic] Executive Summary Verizon Communications, Inc., with Headquarters in New York City; Operations Center in Basking Ridge, N.J. is a Dow 30 company and the most reliable wireless network with 106.3 million total connections. Verizon, a global leader in providing broadband and other wireless and wire line communications services to mass market, business, government and wholesale customers; operates nearly 143.7 million customer connections (wireless, wire line, broadband and TV) served every day. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic...
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...Annual Report Reports are among an organization’s most important communication tools. They appear in a variety of forms, carry out a number of functions, and ensure the efficient transfer of data (Hynes, 2011). The format of a report can be informal or formal. The more important the information is the more formal it is. One example of a report is the annual report. Annual reports are formal financial statements that are published yearly and sent to company stockholders and various other interested parties (Stittle, 2004). In this report will be a discussion of two organizations, AT&T and Verizon on their format and approach on their annual report. Differences in approach of each organization From reading AT&T and Verizon annual report both companies has a positive approach about their organization for 2012. Their order of information was a direct order by pointing their achievements first. They both started out with their financial highlights showing how well they have done from 2011 to 2012. With Verizon and AT&T report they used bullet points pinpointing there success of the year. Here’s an example of Verizon’s highlights, • $15.3 billion in free cash flow (non-GAAP) • 4.5% growth in operating revenues • 13.2% total shareholder return • 3.0% annual dividend increase Here’s an example of AT&T highlights, • We increased our quarterly dividend for the 29th consecutive year and paid out more than $10 billion in regular quarterly dividends...
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...Environmental Scan Dwayne A. Haynes MGT/498 August 12, 2013 Michael Medoro Environmental Scan Internal and external environmental scanning helps shape strategic management and planning. Companies use business strategies to create value and secure competitive advantages. Measurements verify the company’s strategic effectiveness. This essay is a brief overview of the internal and external environmental scans, competitive advantage, value, and measurements used at Wells Fargo and Verizon wireless. Most of the supporting data are summaries from the Wells Fargo, and Verizon websites. Wells Fargo is a large financial institution with five strategic priorities: putting customers first, growing revenue, reducing expenses, living the vision and values, and connecting with communities, and stakeholders (Wells Fargo, 1999 - 2013). The Wells Fargo strategy includes cross-selling, (selling additional products), technology, customer-centric (focus on what the customer needs, not what Wells Fargo wants to sell), brand, and opportunities (Wells Fargo, 1999 - 2013). In the cross sell effort, Wells Fargo has detailed data on what products the customers are buying and the number of products per household. According to Wells Fargo (1999 - 2013), “We want all our wealth management, brokerage and retirement customers to bank with Wells Fargo. We want all our banking customers to think of us first for all their wealth management needs” (Our Strategy). The company wants...
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...Contents Executive Summary ------------------------------------------------------------------------- page 1 Wireless Telecommunication Industry -------------------------------------------------- page 2 Leap Wireless International, Inc. -------------------------------------------------------- page 3 Verizon Communication, Inc. ------------------------------------------------------------ page 4 Restatement of Leap Wireless ------------------------------------------------------------ page 4 Analysis in Accounting Policies and Disclosure Practices --------------------------- page 6 Comparative Analysis of the Financial Statements ------------------------------------ page 8 Governance Structures --------------------------------------------------------------------- page 11 Conclusion ----------------------------------------------------------------------------------- page 14 Reference ------------------------------------------------------------------------------------ page 15 Additional Information -------------------------------------------------------------------- page 17 Executive Summary At least 90% people in the United States use at least one kind of wireless telecommunication services, such as cellular networks service. Leap Wireless International, Inc. is the 5th largest United States public telecommunications company. It competitors include AT&T, T-Mobile or Verizon. This paper will be mainly focused on the restatement of Leap’s restatement of financial statements,...
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...Course Project (Acc504-Managerial Accounting) Verizon Communications, Inc [pic] Team Verizon By: Sanobar Salim Adam Abraham Johnny Ly Salih December 14, 2014 Executive Summary Verizon Communications Inc., headquartered in New York, is a global leader in providing broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, serving more than 93 million customers. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a workforce of 238,000 and last year generated revenues of more than $120.5 billion. The major asset for Verizon commination is their Financial Stability: According to Verizon Communications 2013 Annual Report, the company has $227.3 billion in assets, operating revenues of $120.5 billion, Gross Profit ratio of 19.5, return on asset of 8.6, return on equity of 24 %and cash and cash equivalents at the end of the year ranging from $1.2 billion – $9.7billion over...
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...CASE MEMO VERIZON COMMUNICATIONS INC: IMPLEMENTING A BALANCED SCORECARD By : Pallabi Roy (35) Pranjal Yadav (37) Rudra Prasad Banerjee (43) Sherin S Mathews (49) Sohini Banerjee (52) Srijan Sinha (53) Supratim Datta (55) By : Pallabi Roy (35) Pranjal Yadav (37) Rudra Prasad Banerjee (43) Sherin S Mathews (49) Sohini Banerjee (52) Srijan Sinha (53) Supratim Datta (55) CASE SUMMARY Company profile: Verizon is a global leader in delivering innovation in communications, information and entertainment. It has close to 90.0 million customers. 130 million customer connections (wireless, wireline, broadband and TV) are served every day by them. It has its headquarters in New York City and Operations Center in Basking Ridge, N.J. Its key products and services are: * Wireline voice and data services * Wireless services * Publishing of print and electronic directories Company Evolution: Originally, before the passage of the Act, Bell Atlantic, NYNEX, and other “baby bell” companies were formed. Then in 1996, Congress passed the Telecommunications Act which aimed at deregulation in the telecommunications industry. The total value of mergers and acquisitions had increased considerably after the passage of the act. Soon after this, Bell Atlantic / GTE merger was announced. The entity thus created was named as Verizon. Verizon had more than $22 billion in cash flow. * It had $6 billion revenues and 260,000 employees * It was the largest...
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...Competitors Analyis 1. Major Competitors As a major communication service provider that covers 280 million people in the United States, T-Mobile still has major competitors that the company has to continuously compete with. T-Mobile’s major competitors are At&t Inc., Sprint Nextel Corporation, and Verizon Communications Inc. (Annual, 2014). 3. Competitors Comparative Advantage T-Mobile’s competitors have a comparative advantage that makes competition fierce. At&t Inc. has a strong competitive advantage over T-Mobile by having a strong position in the business services market. Among their business strong position At&t Inc. also has the world’s most advanced Internet Protocol (IP) backbones in the industry (AT&T Inc., 2014). At&t Inc. is also one of the largest telecommunications service providers as they serve to 110.4 Million wireless subscribers, 24.6 million line subscribers, and 16.4 million broadband subscribers by the end of fiscal year of 2013. The company shares a 58% market share with Verizon, AT&T holds a 27% market share (AT&T Inc., 2014). Another fierce competitor that T-Mobile has to strategically compete with is Sprint Nextel corporation. Sprint Nextel Corporation has a competitive advantage over T-Mobile as they are the third largest telecom provider in the United States. Sprint as also partnered up with SoftBank, an internet company, that has invested $22.2 billion for an 80% stake in Sprint (Sprint Nextel Corporation...
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...10. Evaluation Monthly sales targets in cases have been set for Verizon Wireless’ cell phones for each metropolitan area. Actual case sales will be compared with these targets and tactical marketing programs modified to reflect the unique sets of factors in each metropolitan area. 1. Executive Summary Verizon Wireless has had a huge impact on the technological view of the world. Over the last 15 years our economy has experienced a technology boom. Starting at the computers that took up an entire room; to now where the computer is portable and has a battery life up to 6 hours depending on which computer used. This company all started from scratch all thanks to Dan Mead, Andrew Davies, and Marni Walden in 1995. They have proven that hard work pays off in the end. These co-founders have created the competition to want to be the best wireless communications company in the world. The premium quality of their products definitely help with their success. Some of their products may be a bit pricy however, every product gives each consumer the want they couldn’t even imagine asking for. By 2016 the world may be still in the technology boom and we could have many interesting pieces added to Verizon Wireless. The mission for Verizon Wireless is to reach every need the consumer wants and to give reliable service for each product owned by the everyday consumer. Verizon Wireless has the world’s largest percentage in the wireless communicating business. All because...
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...Droid 2 Marketing Plan Sanford Walker MRKT 5000 Mr. Fox December 15, 2011 Table of Contents Executive Summary……………………………………………………………………………..3 Analysis of company…………………………………………………………………………….3 Company Profile…………………………………………………………………………4 Marketing environment…………………………………………………………………………..4 Competitive forces….……………………………………………………………………4 Politics...………...………………………………………………………………………..5 Economics………………………………………………………………………………...5 Customer segmentation and Target positioning…………………………………………………..6 Droid 2 Marketing Mix…………………………………………………………………………...6 Product……………………………………………………………………………………6 Price and Place……………………………………………………………………………7 Promotion…………………………………………………………………………………7 SWOT Analysis…………………………………………………………………………………...8 Strength…………………………………………………………………………………...8 Weakness………………………………………………………………………………….8 Opportunities………………………………………………………………………………8 Threats……………………………………………………………………………………..8 Recommendations…………………………………………………………………………8 References………………………………………………………………………………………..10 I. Executive Summary The purpose of this report is to provide an analysis of the mobile phone segment of Motorola, Inc., which was separated from the rest of the company as Motorola Mobility Inc. on January 4, 2011. After analyzing Motorola’s financial position and their marketing strategy for their Droid 2 product, it was several opportunities identified for the company to improve their brand and product offering (Motorola, 2010.) The following are recommendations...
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...these conditions have affected two monopolistically competitive firms, McDonald’s and Verizon. This paper will explore how the two companies responded to the macroeconomic conditions in terms of their stock performance, current and future sales revenue, current and future products, labor costs and hiring decisions. 1.1 The Current Economic Conditions The current macroeconomic situation is fragile. The US economy is clearly in terrible shape, but what is unclear is how we got there. Many experts trace the origins of the current economic situation to the housing bubble that came about earlier this decade (Tanneeru, M). According to the estimate, the real GDP of the US increased .25 of 1 percent over its level in the 1st quarter of 2011. The growth rate of the economy is still volatile and while any increases in real GDP are welcome, they are not sufficient to reduce the unemployment pool (Watkins, T, 2011). 1.2 McDonald’s and Verizon McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. They serve a varied, limited, value-priced menu in more than 1,000 countries worldwide. By adding Dollar Menu items and introducing high-margin beverages such as coffee and fruit smoothies, McDonald’s has broadened its appeal beyond the young men who account for the biggest share of sales at mother other fast food chains (Reuters, 2011). Verizon...
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...FALL 2012 | Claremont Financial Advisors | A Financial Statement Analysis on AT&T | | Prepared by | Anita HovsepianQinyi DuOctober 21, 2012 | This report is designed to provide investors with investment recommendations for AT&T Inc. by using financial ratios, DuPont Analysis, and by benchmarking its performance with its closest competitor, Verizon. | I. Introduction AT&T Inc., together with its subsidiaries, provides telecommunications services to consumers, businesses, and other providers worldwide. The company’s Wireless segment offers wireless voice and data communication services. The segment also sells various handsets, wirelessly enabled computers, personal computer wireless data cards and accessories. It also offers voice services, such as local and long-distance, calling card, 1-800, conference calling. The company’s Advertising Solutions segment publishes yellow and white pages directories; and sells directory advertising and Internet-based advertising and local search. In addition, the company provides customer information services1. AT&T (ticker: T) is the largest telecommunication service provider in the US. Verizon Communications Inc. (ticker: VZ) ranks the second while BCE, Inc. (ticker: BCE) being the third. As the telecommunication services companies in the US continue to fight to remain relevant, the industry is in decline. However, telecommunication services almost act like a utility and therefore it is a low reward...
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...incidents have become a fact of life for organizations of every size and throughout the public and private sectors” (Online Trust Alliance, 2014, p. 4) making no organization immune. Given the growth of data and, therefore, data breaches the threat to the U.S. economy and individual U.S. businesses from trade secret theft is real and growing, therefore; a multi-pronged approach must be implemented by the public and private sectors alike. “Businesses must do their part to harden their cyber defenses, but the “take-home message here is that protecting IP from ‘them’ is an incomplete and inadequate strategy—understanding that ‘we’ are sometimes our own enemy is important to building good policy and practice for defending the crown jewels” (Verizon DBIR Snapshot, 2012, p. 3). However, to avoid continued, significant and irreversible harm to U.S. companies and the overall economy, robust public policy tools—including in particular trade tools—must also be utilized...
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...announced plans to purchase Motorola Mobility and new LTE technologies are making waves in the mobile data sector. Since these providers rely on advanced technologies only the most innovative and reliable networks survive. Verizon currently dominates the market and services 31.9% of American mobile users. The company was established in 2000 as a joint venture between Vodafone and Verizon Communications. One of the Verizon’s largest acquisitions was the purchase of Alltell Wireless in 2009 for $28.1 Billion; this purchase expanded their network coverage and increased their market share. Verizon operates a CDMA Radio network which does not require the use of SIM cards. The company’s service quality is a competitive advantage and Verizon invests about $5.7 Billion per year to expand and upgrade their network services. Verizon boasts “America’s largest and most reliable network” and has over 160.3 Million subscribers. They recently added the iPhone to their product line in early February which has allowed the company to take a significant portion of sales away from AT&T. Verizon is one of the most expensive networks and appeals to customers who are willing to pay a premium for advanced network technology. In other news the FCC has accused Verizon of illegally adding charges to customers’ bills. The company was ordered to repay $52.8 million in funds back to customers in early October of 2010. AT&T wireless is the second largest service provider with 98.6 Million...
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