William Shirley Robert Bacchus Financial Management May 10,

Question

William Shirleyrobert Bacchusfinancial Managementmay 10 2017verizon C William Shirleyrobert Bacchusfinancial Managementmay 10 2017verizon C After reviewing the information regarding the five types of financial ratios that are best for determining the financial health of an organization, I decided to implement a table to make the information outlined easier to digest. In this paper, I will answer the question: “What do my findings tell me?” I will examine the overall health of Verizon Communications and how it is performing in comparison to 17 industry competitors. The five specific ratios I analyzed are the Current Ratio, Fixed Asset Turnover Ratio, Debt Ratio, Basic Earning Power Ratio, and Return on Assets. The Current Ratio measures a company's ability to meet its short-term obligations with its short-term assets. A higher ratio often indicates sufficient liquidity, but an excessively high ratio might suggest that assets are being underutilized or cash is tied up in non-productive assets. For Verizon, the current ratio remained relatively stable, with a slight dip in 2015 which was attributable to aggressive subscriber acquisition efforts during that period, aimed at expanding their customer base. Despite this dip, Verizon maintained its position within the industry average, suggesting sound liquidity management. The Fixed Asset Turnover Ratio evaluates how efficiently a company utilizes its fixed assets—such as plants and equipment—to generate sales. A higher ratio indicates better asset utilization, whereas a declining ratio could signal over-investment or underutilization of assets. For Verizon, the ratio showed a gradual decline over several years, which is typical for mature telecommunications companies with significant fixed assets. However, a steady, slightly increasing trend in recent years suggests ongoing efforts to improve efficiency and generate more revenue from existing assets. The Debt Ratio indicates what proportion of a company's assets are finan

Dr. Jack HW Helper · Accepted Answer

William Shirleyrobert Bacchusfinancial Managementmay 10 2017verizon C William Shirleyrobert Bacchusfinancial Managementmay 10 2017verizon C After reviewing the information regarding the five types of financial ratios that are best for determining the financial health of an organization, I decided to implement a table to make the information outlined easier to digest. In this paper, I will answer the question: “What do my findings tell me?” I will examine the overall health of Verizon Communications and how it is performing in comparison to 17 industry competitors. The five specific ratios I analyzed are the Current Ratio, Fixed Asset Turnover Ratio, Debt Ratio, Basic Earning Power Ratio, and Return on Assets. The Current Ratio measures a company's ability to meet its short-term obligations with its short-term assets. A higher ratio often indicates sufficient liquidity, but an excessively high ratio might suggest that assets are being underutilized or cash is tied up in non-productive assets. For Verizon, the current ratio remained relatively stable, with a slight dip in 2015 which was attributable to aggressive subscriber acquisition efforts during that period, aimed at expanding their customer base. Despite this dip, Verizon maintained its position within the industry average, suggesting sound liquidity management. The Fixed Asset Turnover Ratio evaluates how efficiently a company utilizes its fixed assets—such as plants and equipment—to generate sales. A higher ratio indicates better asset utilization, whereas a declining ratio could signal over-investment or underutilization of assets. For Verizon, the ratio showed a gradual decline over several years, which is typical for mature telecommunications companies with significant fixed assets. However, a steady, slightly increasing trend in recent years suggests ongoing efforts to improve efficiency and generate more revenue from existing assets. The Debt Ratio indicates what proportion of a company's assets are finan

William Shirleyrobert Bacchusfinancial Managementmay 10 2017verizon C

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