Question

VERIZON COMMUNICATIONS INC (VZ) CashFlowFlag INCOME STATEMENT Fiscal year ends in December. USD in millions except...

VERIZON COMMUNICATIONS INC (VZ) CashFlowFlag INCOME STATEMENT
Fiscal year ends in December. USD in millions except per share data. 2013-12 2014-12 2015-12 2016-12 2017-12 TTM
Revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of revenue 37.24% 39.29% 39.93% 40.82% 40.91% 41.57%
Gross profit 62.76% 60.71% 60.07% 59.18% 59.09% 58.43%
Operating expenses
Sales, General and administrative 22.47% 32.28% 22.78% 25.06% 22.48% 22.90%
Other operating expenses 13.78% 13.01% 12.17% 12.64% 13.45% 13.41%
Total operating expenses 36.25% 45.29% 34.95% 37.70% 35.93% 36.31%
Operating income 26.52% 15.42% 25.12% 21.48% 23.16% 22.11%
Interest Expense 2.21% 3.87% 3.74% 3.47% 3.76% 3.72%
Other income (expense) -0.02% 0.46% 0.08% -1.35% -3.06% -2.16%
Income before taxes 24.29% 12.02% 21.46% 16.66% 16.34% 16.23%
Provision for income taxes 4.75% 2.61% 7.50% 5.86% -7.90% -8.86%
Net income from continuing operations 19.53% 9.41% 13.96% 10.80% 24.24% 25.09%
Other -10.00% -1.83% -0.38% -0.38% -0.36% -0.38%
Net income 9.54% 7.57% 13.58% 10.42% 23.88% 24.71%
Net income available to common shareholders 9.54% 7.57% 13.58% 10.42% 23.88% 24.71%
Earnings per share
Basic 4.01 2.42 4.38 3.22 7.37 7.86
Diluted 4 2.42 4.37 3.21 7.36 7.85
Weighted average shares outstanding
Basic 2866 3974 4085 4080 4084 4116
Diluted 2874 3981 4093 4086 4089 4120
EBITDA 40.27% 28.89% 37.36% 32.78% 33.55% 33.36%

Create a table that contains the most significant common size financial performance results for the last 3-5 years for Verizon. Present

the table with this information in your report.

Write about 1-2 pages of the analysis of the financial conditions, its stability, and trends.

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Answer #1
Fiscal year ends in December 2013 2014 2015 2016 2017
Gross profit 62.76% 60.71% 60.07% 59.18% 59.09%
Operating income 26.52% 15.42% 25.12% 21.48% 23.16%
Net income from continuing operations 19.53% 9.41% 13.96% 10.80% 24.24%
Net income 9.54% 7.57% 13.58% 10.42% 23.88%
Earnings per share
Basic 4.01 2.42 4.38 3.22 7.37
Gross Profits decreased over five years
Operating income decreased over five yers
Net Income decreased for four years but again increased in year 2017
Earning Per Share increased in 2017
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