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Verizon Communications: history, ratios, industry

Verizon Communications Inc.

- What is the history of this company? How did it begin? What differentiates this company from its competitors?
- Compute the following ratios for this company:
o current ratio
o inventory turnover ratio
o accounts receivable turnover ratio
o debt to equity
o return on assets
o return on equity
o gross margin on sales
- What do these ratios indicate about the company?
- Who would be interested in each of the ratios listed above? Why?
- How well is this company doing? If possible, find the industry ratios for comparison.
- What other information would be useful for investors and creditors in making economic decisions about this company?
- Would you invest in this company?

- Identify and use the sources of accounting data and information.
- - Identify the users of financial accounting information and the types of decisions made by users.
- - Describe and analyze the effects of business transactions (both in terms of increases and decreases, and debits and credits) on the basic accounting elements: assets, liabilities, owners' equity, revenues, and expenses.
- - Discuss the impact of technology on business.

Solution Preview

Attached is the Excel file with the answers and financial information.

Verizon Comm. (NYSE: ...

Solution Summary

Excel spreadsheet attached finds the sources of accounting data for Verizon as well as a look into its history and whether investing in it is a good idea, based on ratio calculations.