Financial Management
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Evaluate each firm's financial performance for the two most recent years for Verizon and AT&T
For both of these years and companies
1) Identify what business changes occurred altering the company's use of cash from one year to the next;
2) Discuss whether or not the company is generating cash in a sustainable manner, and
3) Make recommendations as to how the company could better manage its cash flows in the future.
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The response addresses the queries posted in 930 Words, APA Reference
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The response addresses the queries posted in 930 Words, APA Reference
Verizon and AT&T: Financial Analysis
The most recent data available for both the companies is that of the year 2006 and 2007. The cash flow statement has been analyzed for each of the companies for two years and the analysis has been shown below.
1)
There have been some business changes due to which the use of cash has changed from one year to the next year. In AT&T, the investment in fixed assets has increased and the depreciation has also increased in a noteworthy manner (yahoo finance). As a result, the cash outflows in the investing activities have increased due to the purchase of fixed assets and the cash outflows in the operating activities have increased due to the increase in depreciation.
Moreover, the cash inflows from investments of the company have also improved and subsequently, the cash flows from investing activities increased. The cash flows from the changes in the accounts receivable have reduced and thus, the cash flows from operating activities have declined significantly. On the other hand, the cash flows from the changes in the liabilities have turned to be positive and the inflows have increased; consequently, the cash flows from operating activities also increased.
For Verizon, the cash inflows from investments have reduced; therefore, the cash from investing activities have also reduced. The change in the accounts receivables, liabilities and inventories ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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