One of the most important objectives of the curse is that as students we should be able to make better financial decisions. Have a better understanding and ability to process and implement strategies and make successful decisions. Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company.
The analysis will be base on the most important ratios as, Liquidity, Profitability, and Solvency Ratios. …show more content…
Keeping this in view, the company’s liquidity requirements are limited. But still the company should at least the current ratio at 1. The liquidity situation has in fact deteriorated keep in view the decline in the current ratio and the quick ratio over the years.
The company is selling more and more each days; this is represented by the increasing sales per day and costs of goods sold per day ratios. The company has succeeded in reducing the collection period from 44.23 days in 2009 to 39.97 in 2010 which tells that