Financial Analysis : Verizon Wireless

Verizon Communications Inc. is a provider of communications services with for operating segments: Domestic Telecom, Domestic Wireless, information Services and International.

​Verizon Wireless, officially incorporated as Verizon Communications Inc., is a company that provides communication, information, and entertainment products and services. Its consumer base consists of the general public, as well as businesses and governments. Its business operations can be divided into parts, which are Verizon Wireless and Wireline, though Verizon doesn't advertise its Wireline business by name. Instead, Wireline is advertised to the public as part of Verizon Wireless' services. Some of the services that they provide are phone equipment sales, wireless voice and data services, broadband internet access, network access, internet protocol network services, and various on-demand video streaming. Now providing services in over

“Verizon Communications Inc. (Verizon) is one of the world’s leading providers of communications services. Verizon’s wireline business, which includes the operations of the former MCI, provides telephone services, including voice, broadband data and video services, network access, nationwide long-distance and other communications products and

Verizon has consistently provided some of the best mobile device service, as they have hands down the best network across the United States and around the globe as well. There is a reason that they have so many returning customers who have been with them for a long time and they have done it again with their Fios network, which has been a slam dunk. If you were not yet aware, Verizon now features internet and television, which you can get in a bundle package, saving you a lot of money in the long run.

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.

The major competitors for Verizon are three national wireless service providers AT&T, Sprint, Nextel, and T-Mobile. Its biggest competitor is AT&T, it claims the highest market share in the industry behind Verizon. Verizon also competes with regional wireless service providers, such as U.S. Cellular, MetroPCS and leap wireless. There is very strong competition and it will continue to increase. The expansion of new products and services also plays a huge role to increase competition.

Verizon Communications formed by the merger of two big and successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunication company. The company serves large part of the market in United States. However the company faces certain strengths and weaknesses which affect the way company formulate its strategies.

At Verizon Communications the strategic focus is on the wireless and wireline segments. They continue to advance both networks through innovation and consistently staying on top of the newest and best technology. This allows them to be one foot in-front of their competitors. Verizon believes the steady investment they put into their networks and platforms will drive innovative products and services and will continue to fuel their growth. The strategic plan for Verizon Communications will continue to make their wireless and wireline networks the hallmark of their brand. They believe this will carry their brand and give a competitive advantage over competitors.

Liquidity represents a company’s ability to pay its short-term obligations. In the following schedule is the calculation of the ratios that are indicators of the liquidity position of a company.

The Verizon Communication Company deals with the sale of products like mobile and fixed telephone and offers broadband wireless internet services in America. It was founded in 1984 as Bell Atlantic and later changed the name to Verizon Company after merging with GTE in 2000 (Sbeit, 2008).

Verizon Wireless has been able to differentiate their service from other competitors by providing a high-quality service to meet customer needs.

Mobile network operators make all sorts of claims in their non-stop marketing: fastest network, most reliable network, largest network. Cut through the marketing fog, and what's the truth? The latest report from RootMetrics provides some answers, and it paints Verizon as the clear leader in the U.S.

Liquidity ratios measure the short term ability of a company to pay its obligations and meet their needs for maintaining cash. According to Cagle, Campbell & Jones (2013), “A good assessment of a company’s liquidity is important because a decline in liquidity leads to a greater risk of bankruptcy” (p. 44). Creditors, investors and analysts alike are all interested in a company’s liquidity. After computing liquidity

Verizon Communications, Inc. is a broadband telecommunication company that maintains a primary focus on wireless communications. Verizon, in some capacity, maintains a presence in over 150 countries with new territories being developed yearly.

The liquidity ratios are a group of ratios that show the relationship of a firm’s cash and other current assets to its current liabilities. This basically means that the ratios measure how well the company is able to pay its short-term obligations and how well they can confront unexpected needs for cash.