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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.

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