Module 2 Slp: Understanding Financial Reports

Verizon has gone through many changes in the last few years. The communication industry is extremely competitive and this company would not have had a chance of forming at all, except for the government ordered breakup of AT&T in 1984. Their targeted areas of communication are cellular, paging and PCS services for corporate and individual customers. They have been trying to expand their business for corporate local goods and services.

Comprehensive Annual Financial Report (CAFR) is a report used by cities, and local governments to provide the public with their financial records each year, while adhering to government accounting standards board (GASB) guidelines. The report presents a comprehensive picture of the reporting entity’s financial condition, it provides how funds are spent and allocated throughout the year.

This means that the next 3-5 years for the company, currently known as Sprint, looks promising. The merger may not create perfect business conditions for the company, but financial improvements will appear evident and Sprint’s legacy is likely to survive. However, if the merger does not go through, Sprint Corporation is still at-risk for closing its doors within the next couple of years. If Sprint does not merge with T-Mobile, and the executive leaders fail to develop effective strategies to revive its current financial situation, I am predicting that Sprint Corporation will no longer exist in the near

In order to identify Verizon's core competencies, a SWOT and Five Forces analysis was performed. The SWOT analysis showed internal strengths in technology diversification, a large and talented employee resource pool, and an expansive network footprint. Internal weaknesses were revealed that centered on post merger issues such as corporate culture issues, impending workforce retirements, and a lack of systems or process consolidation. External opportunities include the potential to further capitalize on incumbent status, diverse markets, long distance, and brand identity. Finally, external threats include government regulation, substitution, and a weak economy.

Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.

The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.

The companies are generating cash in what most individuals would say is a substantial manner however, when looking at each organizations debt load, operating expenses and ratios analysts and investors can learn that the cash being generated is far less then what both Verizon and AT& T need to earn in order to consider this a substantial manner for both companies. Both companies in particular Verizon are picking up large amounts of debt however, as they pick up debt both companies are maintaining a profit.

In this paragraph I will tell you why I think Verizon is better than Sprint. Verizon has 2.1% call failures when Sprint has 3.7% to call failures for the Iphone 4s. Overall performance root score Award winner Verizon with 93.9 and Sprint 86.6 for the IPhone 4s. Here is what I found on google, "If you have many devices Verizon and Sprint have the same monthly device fees; however, if your on a two-year agreement with Sprint, their access fee is double Verizon's, so

Verizon and sprint are both on different path with Verizon firmly establishing itself as the king of the air waves and sprint on the verge of financial chaos. Their relationship with their employee come with a surprise as Verizon posted one of the largest strike in in this decade when 40,000 employee walk off their job and started a very controversial strike which has been waited in by many on the cause and outcome. To say the least this, show there are issues to be dealt with it employee relationship. Investor can will also see this as a sign that there is a possibility for customer service issues to arise. Verizon is very capable of shouldering a very huge financial load but the recent event of the strike could cause many potential future

Virgin Mobile is looking to launch a new cell phone service in the US marketplace, which is already a highly saturated industry. This analysis will help select a pricing strategy that attracts and retains subscribers, while still maintaining a competitive edge within the industry. The cell phone industry has many sources of customer dissatisfaction. For instance, customers’ distrust in pricing plans due to confusing usage rates; companies’ inconvenient and inconsistent off-peak hours; service provider’s hidden fees that include taxes and higher rates after minutes are used up, universal service charges, and one-time costs; and binding contracts by the service

Both T-Mobile and Sprint have been attracting maximum customers since last summers with its cheaper unlimited data plans. But now, Sprint is moving one step further with more cheap prices.

Verizon is a major telecommunication provider in the United States. The company is the market leader, with $110 billion revenue and $2.4 billion in profit (MSN Moneycentral, 2012). Verizon has steady revenue streams that are largely based on a subscription model. It has several business segments, including wireless (63.3% of revenues) and wireline (36.7%) (2011 Verizon Annual Report). Most of this report will therefore focus on the wireless business, not only because this is the largest business that the company operates but because it is a rapidly growing and evolving business as well, a function of the rapid pace of smartphone adoption in America.

Unfortunately, the loss for Verizon is a weakness, and it doesn’t show any growth for the company or any sustainability for anyone looking

Mobile is most useful invention of the science and technology which has helped the world to stay connected. Verizon wireless is the largest mobile network operator in the United State with its head office based in Basking Ridge, New Jersey. Verizon wireless is the most reliable and largest wireless communication service provider providing services such as voice, messaging and 3G data product with total customer base of more than 110 million. Verizon wireless is a trade name which is used by Cellco Partnership Inc. in U.S.

Verizon's financial position is not very impressive. The company has $49 billion debt load. Moreover the Gross Profit Margin of 2003 has decreased to 0.67, which was 0.70 in 2002 (financial/accounting).