Verizon Corporation, Research Paper Example

The matter of accomplishment for an organization is measured in the strategy for success, their promoting system, and how they find themselves able to separate from their rival. The progressions inside the information transfers industry have changed the unassuming strategy in which voice correspondence has extended as a crucial piece of the general public. The innovation of the cell and different manifestations of remote correspondences have overwhelmed the domain of imaginative engineering. It was just decades back where numerous individuals were not acquainted with cellular telephones; however things are different now and now individuals have the capacity contact anybody, whenever or anyplace. On account of Verizon Company, they are one of the main information transfers organizations all through the world that is heading the change in remote gadgets. The examination on Verizon Corporation will look at their financial analysis, as well as their financial position, to keep up as a key business sector player inside the business.

Based on their recent income statement and balance sheet, Verizon will beat the business expectations throughout the following 6 to 12 months. This projection is focused around our examination of three key components that impact basic stock execution: recent price movement, relative valuation, and earnings strength.Verizon Communications was created through several acquisitions and mergers of several telecommunication companies that are now defunct. Beginning in 1983, the FCC forced AT&T to split into seven different companies, while General Technology & Electronic (GTE) brought Bell Atlantic in 1997. GTE became the first provider to provide nationwide cell service in 2000. When the companies merged in 1997, they formed a joint venture with Vodafone AirTouch and Bell Atlantic Mobile. They began as Verizon Wireless ever since, and they have quickly became the largest wireless provider in the United States. By 2015, the US mobile market is expected to earn in revenue over $721 billion, and the four leading companies includes Sprint, T-Mobile, AT&T, and Verizon Wireless. While it is reported that their earnings strength is very negative, they have $190 billion market capitalization, which is neutral with a very positive relative valuation. Their EPS increased to $3.06 from $2.26 within the last five quarters, which has indicated their improvement in their growth rage. Verizon also has a neutral annual dividend rate of $2.12, very positive price movement, and a positive operating earnings yield that is over 80% over larger companies such as Ford, at a rate of 6.6%. (Yahoo Finance, 2014)

Based on their income statement, in 2013, with a positive 5-year trend of $120 billion, and a gross income of over $59 billion in 2013. (Market Watch, 2014). Their sales growth has slightly decreased only .32 percent, with 4.48% in 2012, to 4.06% in 2013. The Cost of Goods Sold decreased by 1.92% to $61.49 billion in 2013, and their gross income has increased 11.11 percent. Exponentially, the net income was $11.5 billion, which is a 1,213.94 percent increase from 2012’s $875 million. This is right on par with their EPS growth at 4.01, a 1,193.55 percent increase from .31 in 2012. (Market Watch, 2014) Yahoo Financials shows that Verizon continues to have rates of growth at 18.00 revenue percent, and will have a 111.2 percent 5 year return. Even looking at the past historical financials of Verizon, they had liabilities of under $60 billion, and assets that totaled over $200 billion, with a capital ratio of over 52 percent. They have continued to have a positive cash flow margin, and have increased their operating earnings to well over $300 billion. Verizon will continue to grow and improve as they used a majority of their money to invest in financing cash flows and investing activities. Based on their income statement, the revenue has increased despite the decrease in the net income. As risky endeavors increases, they continue to make acquisitions in which drive up their revenue to the retail market. It is estimated by 2017, the revenue will be close to over $150 billion, as their rate of growth continues to improve. Their debt amount is not a significant factor, and based on the Diversified Telecommunication System industry standard, the 37 percent in considered normal.

Verizon remains in the opportune position as the market leader based on industry analysis in which their quarterly amount has well increased to over $30 billion at 1.10 percent quarterly rate growth. Based on the financial statements, it is forecasted that the net income will improve to well over $60 billion, with positive cash flows, which help the organization operate at level that is efficient in comparison to competitors in the market.  Their gross margin has slightly improved to 62.76 percent, their operating margin has greatly increased from 11.36 percent in 2012, to 26.52 percent in 2013. Looking at their profitability, their net margin greatly improved from .76 percent to 9.54 percent in just under a year. Their Return on Assets also increased from .38 percent to 4.61 percent, while their Return on Equity improved greatly to 31.94 percent, from 2.53 percent in just one year.

Verizon has encountered accomplishment in a short measure of time. With simply the business sector of the wireless in the 1980s, there have been many organizations that have joined in the market, giving an oversaturation to the market. Verizon is the market leader, and is one of the top Global organizations, to offering various items and administrations to local, worldwide, private, retail, undertaking and little business customers. As they enter into new markets for information and cloud-based applications they must keep on rethinking their strategy for success, and technique. Verizon will keep on acquiring and consolidation organizations that give them a bigger offer of the business sector. These activities to give information administration to those in remote zones serves to place Verizon on as one of the organizations that thinks about saving the nature as well as staying valid to their mission and their vision.

References

Verizon Communications. (2014). Market Watch. Retrieved from http://www.marketwatch.com/investing/stock/vz/financials/balance-sheet

Verizon Annual Report. (2014). Verizon. Retrieved from http://www.verizon.com/about/investors/annual-reports/

Verizon Communications. (2014). Yahoo Financials. Retrieved from https://finance.yahoo.com/q/is?s=vz+Income+Statement&annual