Financial analysis Essay Example | Topics and Well Written Essays - 750 words

Financial analysis - Essay ExampleThe succeeding years thereafter showed an affirmative arc implying an adjustment in the operating system. It can be noted that it was in late 2003 that Verizon invention were observed immediately the year after as seen on the total net income of 2004. Assets over the five-year point remain at almost the same level while the total liabilities argon decreasing, with a beautiful increase in 2005, suggesting a good overall trend. symmetry by 2002 shows that the company has begun acquiring demote investments and a considerable increase in earnings. Return on investment shows a positive trend over a five-year period with the same noted decrease in 2003 because of the transition in Verizons commercializeing strategy.2005 was constant and remain within the normal range of 0.5 to 2.0 (reuters.com). The low and steady current ratio proves a standard cash payment system since the company is service-oriented, with the consumers paying on a monthly basis (Ro senbush 58). Total debt/equity and long-term debt/capital ratios show that the companys financial resources are stable and strong enough to pay both the short and long-term debts that it has incurred. The gradual decrease in both debt ratios also suggests that Verizon is able to manage the payment of its debts properly over the years, implying a steady result in earnings during this period.Sprint Nextel Corp. and AT&T Inc. are some of Verizons competitors in the telecommunications industriousness (Rosenbush 58). Figure 2 presents a comparison of the profitability of Verizon against its competitors from 2001 to 2005. This shows that over a five-year period, Verizon has been competing with AT&T for the market shares. Sprint Nextel Corp. has negligible effect in terms of competitiveness with the other two companies. The graph suggeststhat Verizon was merely able to out-run AT&T beginning on 2004. This