Question
The data shows ratios for the last 5 years for Verizon and T-mobile Five years ratio: Verizon vs. T-Mobile Financial Ratios 2016 2015 2014 2013
The data shows ratios for the last 5 years for Verizon and T-mobile
Five years ratio: Verizon vs. T-Mobile
Financial Ratios | 2016 | 2015 | 2014 | 2013 | 2012 |
Liquidity of Short-Term Assets | |||||
Current Ratio | |||||
Verizon | 0.79 | 2.62 | 1.06 | 0.64 | 0.87 |
T-Mobile | 1.5 | 2.11 | 1.59 | 1.56 | 1.58 |
Cash Ratio | |||||
Verizon | 0.13 | 2.00 | 0.40 | 0.14 | 0.09 |
T-Mobile | 0.71 | 1.01 | 0.61 | 0.80 | 0.61 |
Quick Ratio | |||||
Verizon | 0.60 | 2.46 | 0.90 | 0.54 | 0.70 |
T-Mobile | 1.24 | 2.00 | 1.47 | 1.43 | 1.45 |
Long-term Debt-paying Ability | |||||
Debt Ratio | |||||
Verizon | 0.85 | 0.86 | 0.95 | 0.93 | 0.91 |
T-Mobile | 0.14 | 0.71 | 0.72 | 0.73 | 0.72 |
Debt-equity Ratio | |||||
Verizon | 5.79 | 6.06 | 17.92 | 13.89 | 9.84 |
T-Mobile | 2.43 | 2.51 | 2.62 | 2.77 | 2.61 |
Times Interest Earned | |||||
Verizon | 5.12 | 11.99 | 3.99 | 6.72 | 6.18 |
T-Mobile | 0.57 | 0.81 | 1.05 | 1.38 | 2.20 |
Profitability | |||||
Profit Margin (Net Income/Sales) | |||||
Verizon | 0.76% | 9.54% | 7.57% | 13.58% | 10.42% |
T-Mobile | 0.32% | 0.14% | 0.84% | 2.29% | 3.92% |
ROA (Net Income/Assets) | |||||
Verizon | 0.39% | 4.19% | 4.14% | 7.32% | 5.38% |
T-Mobile | 0.05% | 0.07% | 0.44% | 1.17% | 2.22% |
ROE (Net Income/Shareholder Equity) | |||||
Verizon | 2.64% | 29.60% | 78.26% | 108.83% | 58.28% |
T-Mobile | 0.16% | 0.25% | 1.58% | 4.43% | 8.01% |
Asset Utilization/Management Efficiency | |||||
Total Asset Turnover | |||||
Verizon | 0.46 | 0.48 | 0.53 | 0.54 | 1.03 |
T-Mobile | 1.07 | 0.46 | 0.50 | 0.50 | 1.13 |
Inventory Turnover Measures | |||||
Verizon | 41.91 | 41.31 | 41.52 | 42.83 | 85.56 |
T-Mobile | 112.12 | 14.67 | 12.95 | 12.38 | 29.79 |
Accounts Receivable Turnover | |||||
Verizon | 9.26 | 9.12 | 9.62 | 8.50 | 14.39 |
T-Mobile | 19.2 | 8.91 | 16.19 | 17.40 | 39.28 |
Market Measures | |||||
Price/Earnings Ratio | |||||
Verizon | 139.39 | 11.47 | 19.33 | 10.55 | 16.58 |
T-Mobile | 32.18 | 336.40 | 86.90 | 47.13 | 33.63 |
Earnings Per Common Share | |||||
Verizon | 0.31 | 4.01 | 2.42 | 4.38 | 3.22 |
T-Mobile | 0.1 | 0.1 | 0.31 | 0.83 | 1.71 |
Dividend Payout Ratio | |||||
Verizon | 0.16 | 0.15 | 0.63 | 0.52 | 0.41 |
T-Mobile | 0 | 0 | 0 | 0.003 | 0.003 |
Summarize these ratios in 1-2 pages as what they depict. compare the ratios for both the companies There are many different other statistics available for Verizon. These include market value, beta, and diluted EPS, etc. Discuss some of the key statistics that you think can assist you to determine Verizon is a good buy or sell. For you to decide if a corporations stock is a good buy or sell, you must forecast several key variables, including the stock price. Use historical prices (5 years of monthly data recommended) and forecast the stock price for the next year. Use regression analysis, and/or moving average, etc. to create your forecast. Create a graph from the historical data and show your forecast on the same graph. You can add a trend line to the graph to help you with a forecast. Include the graph in your report. You need to say specifically what the forecasted value of the stock price is. You must address the question, Is this forecast reasonable? Must you amend your analysis to get a more reasonable forecast?
Other information pertinent to the corporation that could affect its future performance and stock price. This could include dividend policy, capital structure, bond ratings, expert opinions on TV, new projects, litigation, regulation, etc. Search for information on the web regarding this corporation. Look at company complaint blogs, etc.
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started