Accounting Company Analysis Essay

Submitted By rodma05
Words: 2698
Pages: 11
Open Document
Verizon Financial Analysis
By
Maria G. Rodriguez

MBA 6150-Accounting
Financial Statement Analysis
Professor Wendy Achilles
August 19, 2011

Executive Summary The following is financial analysis comparing the most recent three years of data from communications company Verizon. The competitor to be compared is the most recent year of at&t. The most recent year will begin at 2010 and go as far as 2008. This includes an analysis of both financial ratios and common size percentages. In the analysis for ratios will be included an analysis to compare industry averages. Verizon demonstrates to be favorable when comparing the competitor of at&t and the industry average in most categories. These two competitors lead in their industry of communications. The ratios and common size statements can be found at the end of this analysis for comparison of numbers as an excel attachment.

Company Background
Verizon is a company that provides telecommunications services. The services include both voice and data networks. In the recent years the company has moved towards focusing on selling more data services such as netbooks, tablets and data cards to connect other Wi-Fi enabled devices. Amongst the voice services includes landline phone and cable where permitted. Verizon Employs over 85,000 employees nationwide and runs over 2,000 company operated stores. There are also telesales, Technical support and customer service departments nationwide in call centers. Basic company information can be found on Verizonwireless.com in the “About Us” section.
The company prides itself in having “the nation’s most reliable network”. This statement is backed by many third party tests done every year. When it comes to consumer reviews, it is agreed that the company provides a reliable signal and in a real world environment they also have the fastest speeds. For the landline side, Verizon is recognized for quality in services for cable and internet. The company has adapted to the changing industry with the decline in home phone services requested in the consumer sector.
In recent years Verizon purchased a spectrum referred to as LTE or Long Term Evolution. This new network is the next generation in technology to provide more reliability and faster speeds. It was purchased to have a competitive advantage upon its completion. It is set to cost one fifth to maintain compared to the current CDMA network. The data speeds are expected and have been tested to be ten times faster than the current network. The new LTE network has been launched in many markets already but is not expected to be complete until the year 2013.
Operations and Products/Services The key products or services for Verizon are the data services for wireless, the cable and internet offered for communications and the landline phone services for the business sector. The competitor for Verizon is at&t. They compare the closest in the industry because both have a wireless sector and similar services for communications. Both companies have similar key services offered. Those same key services are the key managers for either company. Both companies remain strong in the industry and compete highly. It is difficult for other competitors to do as well due to these two companies having both a wireless and landline sector. Every year they compete closely with the number of customers both companies have. In recent years Verizon purchased ALLTEL, which put them at a higher number of customers. In the past year at&t purchased T-mobile, making for now more customers than Verizon when the purchase is complete. At&t is already a combination of the old Cingular and at&t plus the landline sector. The purchase of ALLTEL had a smooth transition in combining into Verizon as far as employees, customers, billing systems and networks. The transition for T-mobile has not been determined since that process has not begun yet. The purchase for at&t can be good
Show More

Related Documents: Accounting Company Analysis Essay

Accounting Analysis: Financial Issues And Analysis Of A Company

Role: Accounting manager - review several accounting reporting issues, advise the CFO on appropriate treatments, and finalize the financial statements. Key Users: CFO - he requires the controller’s advice on the accounting treatments of the following issues and attaches importance to the profitability of the company. Management team - they also attach great importance to the company’s profitability and growth. Shareholders, creditors, and private placement investors - they will be relying…

Words 1079 - Pages 5

Accounting Information For Decision Making

CHAPTER 1 ACCOUNTING: INFORMATION FOR DECISION MAKING OVERVIEW OF BRIEF EXERCISES, EXERCISES, AND CRITICAL THINKING CASES Brief Exercises B. Ex. 1.1 B. Ex. 1.2 B. Ex. 1.3 B. Ex. 1.4 B. Ex. 1.5 B. Ex. 1.6 B. Ex. 1.7 B. Ex. 1.8 B. Ex. 1.9 B. Ex. 1.10 Exercises 1.1 1.2 Topic Users of accounting information Components of internal control Inexact or approximate measures Standards for the preparation of accounting information FASB conceptual framework PCAOB COSO Professional…

Words 5833 - Pages 24

Generally Accepted Accounting Principles and Fasb Asc Paragraph Essay

Exam #1 Research Memo Question #2 Facts: Defined of Recognition in accounting. Issues: What is the recognition in accounting always depends on? Analysis: FASB ASC paragraph 605-10-25-1 (Revenue Recognition Topic). “Revenue should not be recognized until it is realized or realizable and earned.” Conclusion: Based on these guidelines, recognition in accounting always depends on the accounting standard being used (b). Question #3 Facts: Defined of asymmetric information and capital market…

Words 1069 - Pages 5

Analysis in Accounting Essay

Analysis in Accounting Katherine E Candelas Ashford University Abstract There are all kinds of information that is given in the world of accounting. Companies have to look at all many different forms of financial statements. In order for the company to understand them they have to find the different ways of utilizing analysis in the company. There are many different types of analysis that can be used in the work force. From horizontal to ratio to vertical you will know how to utilize it when…

Words 708 - Pages 3

What Should Be Included In A Group Project

group project report: 1. Abstract (1 paragraph). This should give a brief summary what you did and your findings. 2. A brief history of your companies and the industry in which they operate (1 page). 3. Accounting and reporting of the following items for your companies: a. Accounting policies and comparison with international accounting standards b. Financial statements, including segment and geographic information c. Corporate governance, ethical issues, and other disclosures…

Words 388 - Pages 2

ACC 340 Week 5 Learning Team Assignment Integrate Accounting Paper

Integrated Accounting Cycle Final Report ACC/340 Integrated Accounting Cycle Final Report Integrating accounting cycles into a company’s financial life is important and can determine the success or failure of a company. Accounting cycles need to be incorporated or integrated and properly followed to make sure that data is enter correctly will benefit a company. The following report is the findings that the Learning Team A of the Accounting Information System I Class found when examining the account…

Words 1426 - Pages 6

Financial Accounting Essay

Financial Accounting Introduction: Definition: Accounting is the process of identifying, measuring and communicating financial information to help people make economic decisions. Accounting: Financial and Managerial Accounting Users of Financial Accounting: Shareholders to invest in the company, Creditors and Suppliers to determine loan terms and supply-chain relationships, Managers and Directors for incentive compensation, Financial Analysts (Credit Rating Agencies, Portfolio managers)…

Words 541 - Pages 3

Evaluation Of Financial Analysis

LUBS 3865 FINANCIAL ANALYSIS SESSION 2 OVERVIEW OF FINANCIAL ANALYSIS Objectives To introduce the framework that will be use in the module to evaluate company performance Introduction The framework adopted for evaluating the performance of a company focuses on three interrelated aspects of a firm’s performance: 1. its strategic direction 2. its financial statement performance 3 its stock market performance An analysis of a company’s performance requires a thorough evaluation of these three…

Words 2421 - Pages 10

ACC 561 Final Exam Study Guide Essay

taxes. Most common form of organization. Reduced legal liability for investors. Multiple Choice Question 64 The group of users of accounting information charged with achieving the goals of the business is its creditors. investors. managers. auditors. Multiple Choice Question 110 Which of the following financial statements is concerned with the company at a point in time? Balance sheet. Income statement. Retained Earnings statement. Statement of cash flows. Multiple Choice Question…

Words 1346 - Pages 6

Homework for ACC 205 Essay

learned in this week’s readings the Accounting Equation is Assets = Liabilities + Owners’ Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation. Answer- The assets in the accounting equation are the assets of that a company which has available for its use, such as cash, accounts receivable, fixed assets, and inventory. The reason why the accounting equation is so important is that is…

Words 3986 - Pages 16