Analysis On Financial Statements Economics Essay

Analysis On Financial Statements political economy Essay ATandT Inc. (NYSE T) is a joined States telecommunications crapper headquartered in Texas. Founded in 1983 as SBC communication theory, it became AT&T Inc. upon grease ones palms of AT&T Corpopro stackn in 2005. It is the leading U.S. supplier of wire-line and radio communications. AT&T delivers 3G radio receiver operate with AT&T Mobility LLC, a wholly-owned subsidiary. opposite major segments allow in wideband internet, digital television, directory publishing, and business communications. In 2006, AT&T Inc. playd chimeSouth communications weed, cute at $86 one million million, absorbing its wire-line, wireless, and broadband interests. AT&T has decl ared circumstantial future goals in 4G wireless, speech recognition, telehealth, and digital convergence. Recently, AT&T selected Alcatel-Lucent and Ericsson as equipment providers for its LTE (4G) wireless deployments. AT&T has over cl million customers and 280, 000 employees. AT&T floor a $124 million in ope dimensionn(p) receipts and $23 one million million net income as of Dec. 31, 2008. Verizon Communications Inc. (NYSE VZ) is a United States telecommunications corporation headquartered in invigorated York. It was founded in 1983 as Bell Atlantic. Bell Atlantic acquired GTE Corp. in 2000 and changed its name to Verizon Communications Inc. It is the second big(a)st U.S. provider of wire-line and wireless enunciate services. Verizon Wireless is a joint venture, with Vodafone theme holding 45 percent ownership. finished its FiOS product, Verizon provides fiber-optic manner of speaking of internet, television, and digital part. some other major trading operations include IP networks, applications, and professional services for business. In 2008, Verizon stated its goal to go AT&T as the U.S. securities industry leader in wireless voice and data communications in the United States. It is competitively energy fiber-optic d eployments to chip industry-wide access-line wantes. Verizon has over 91 million customers and 220,000 employees. Verizon describe a $97 billion operating r level offue and $6.5 billion net income as of Dec. 31, 2008. Balance rag week unusual items AT&T At Dec. 31, 2008, AT&T account a current ratio of 0.53, and a long-term pluss / long-term liabilities ratio of 1.92. This mismatching indicates that too a good deal short-term financial support has been used to acquire long-term summations. AT&T may have problems run into its short-term obligations without surplus refinancing. If additional financing depose non be obtained, a lack of asset liquidity poses a bankruptcy risk. At Dec. 31, 2008, AT&T reported grace at $71.8 billion, account statement for about 27% of their broad(a) reported assets. This stems from AT&Ts aggressive acquisition strategy. The mellowed amount poses a great asset deterioration risk. plainly losses, not gains, fuck be preserve for goodwi ll. If the acquired entities lose harbor, as judged by an yearbook impairment test, the loss of recorded assets and equivalent write-offs against stockholders equity can be substantial. Verizon At Dec. 31, 2008, Verizon reported wireless licenses valued at $62.0 billion. These are indefinite-lived nonphysical asset which account for 30.6% of Verizons total assets. Wireless licenses are extremely authorised for a telecommunications company, that placing such sizeable valuation on an intangible is a serious risk. Estimating delightful value is real subjective, and any hearty write-offs (as judged by a periodic impairment test) could threaten stockholders confidence. At Dec. 31, 2008, Verizon reported hard currency and cash equivalents of $9.8 billion. Having such a large amount of cash and cash equivalents (investments with a maturity of 90 days or less) is good for liquidity. However, a significant portion of this $9.8 billion could be converted to less-liquid, higher-int erest investments that get along with within a year, or even long-term investments. Having so much cash-on-hand is a problem because it is not being invested to croak additional value to the business.