Breakdown |
TTM |
12/31/2019 |
12/31/2018 |
12/31/2017 |
12/31/2016 |
Total Revenue |
131,868,000 |
131,868,000 |
130,863,000 |
126,034,000 |
125,980,000 |
Cost of Revenue |
54,726,000 |
54,726,000 |
55,508,000 |
51,556,000 |
51,424,000 |
Gross Profit |
77,142,000 |
77,142,000 |
75,355,000 |
74,478,000 |
74,556,000 |
Operating Expenses |
|||||
Selling General and Administrative |
29,990,000 |
29,990,000 |
31,083,000 |
28,336,000 |
31,569,000 |
Total Operating Expenses |
46,672,000 |
46,672,000 |
48,486,000 |
45,290,000 |
47,497,000 |
Operating Income or Loss |
30,470,000 |
30,470,000 |
26,869,000 |
29,188,000 |
27,059,000 |
Interest Expense |
4,730,000 |
4,730,000 |
4,833,000 |
4,733,000 |
4,376,000 |
Total Other Income/Expenses Net |
-3,128,000 |
-3,128,000 |
-2,507,000 |
-3,943,000 |
-1,756,000 |
Income Before Tax |
22,733,000 |
22,733,000 |
19,623,000 |
20,594,000 |
20,986,000 |
Income Tax Expense |
2,945,000 |
2,945,000 |
3,584,000 |
-9,956,000 |
7,378,000 |
Income from Continuing Operations |
19,788,000 |
19,788,000 |
16,039,000 |
30,550,000 |
13,608,000 |
Net Income |
19,265,000 |
19,265,000 |
15,528,000 |
30,101,000 |
13,127,000 |
Net Income available to common shareholders |
19,265,000 |
19,265,000 |
15,528,000 |
30,101,000 |
13,127,000 |
EBITDA |
44,145,000 |
41,859,000 |
42,281,000 |
41,290,000 |
1. Using the relevant financial information, complete calculations for each of the profit ratios, liquidity ratios, activity ratios, leverage ratios, and shareholder return ratios included in the Financial Analysis section of your MindTap reading. PLEASE INCLUDE ANY CALCULATIONS.
2. Alongside (or below) each calculation, you must also explain in everyday non financial language what every ratio calculation indicates about Verizon. Please do not provide generic information about each of the ratios mean. YOUR EXPLANATION MUST INDICATE WHAT THE CALCULATED NUMBERS FOR EACH RATIO INDICATES ABOUT VERIZON AS A COMPANY.
3. Lastly, write a SUMMARY paragraph in everyday non financial language which clearly indicates what each of the calculations you completed TAKEN TOGETHER indicate about Verizon as a company. This summary should also include an analysis of the Verizon's cash flow and what it indicates about them. In other words, this section provides your overall assessment of Verizon based on what the combination of their financial data (each of the ratios you calculated and explained as part of the assignment) suggests.
1) The following ratios have been calculated for Verizon:
Gross profit margin= Gross profit/Revenue
Operating profit margin= Operating income/Revenue
Net profit margin= Net profit/Revenue
Gross profit margin | 58.50% | 58.50% | 57.58% | 59.09% | 59.18% |
Operating profit margin | 23.11% | 23.11% | 20.53% | 23.16% | 21.48% |
Net profit margin | 14.61% | 14.61% | 11.87% | 23.88% | 10.42% |
2)
Gross profit margin: In context of Verizon as the company the gross profit can be the tower expenses that will be expensed against making calls or providing data services and hence included in the direct cost of sales against the revenue. As we see that the gross profit margin is falling broadly but has recovered in the last year.
Operating profit margin: Includes the salaries of employees, branding and marketing expenses and depreciation of tower and infrastructural assets in the context of Verizon, due to better management of expenses, Verizon has been able to improve upon its operating margin considerably.
Net profit margin: The net profit margin has been very volatile for Verizon, due to the losses made on other operating activiites. As it a major component affecting profitability more information would be needed to ascertain the cause of these losses year on year.
3) Verizon as a company operates in an industry with decent profit margins where profitability is majorly effected by the handling of operating expenses by the company. The firm has a stable revenue stream generating confidence amongst shareholders but the volatile profit margin due to consistent investment in upgrading technologies might make investors vary of investments. But, a very stable EBITDA margin ascertains that it operates in a stable industry and though affected by periodic investments, the firm serves as a stable bluechip firm with good profit margins and a good management aimed at improving the profitability of the firm as observed from the increasing operating margin of the firm.
Breakdown TTM 12/31/2019 12/31/2018 12/31/2017 12/31/2016 Total Revenue 131,868,000 131,868,000 130,863,000 126,034,000 125,980,000 Cost of Revenue...
Income Statement 12/31/2019 12/31/2018 Total Revenue 22428000 21965000 2.11% Cost of Revenue 16445000 15907000 3.38% Gross Profit 5983000 6058000 -1.24% Operating Expense 3026000 2852000 6.10% Operating Income 2957000 3206000 -7.77% Net Non Operating Interest Income Expense 8000 -24000 -133.33% Other Income Expense -8000 -18000 -55.56% Tax Provision 657000 699000 -6.01% Total Expenses 19471000 18759000 3.80% Interest Income 90000 69000 30.43% Interest Expense 82000 93000 -11.83% EBIT 3039000 3257000 -6.69% Tax Rate for Calcs 0 0 Tax Effect of Ususual Items...
Oracle Corporation (ORCL) Income Statement
All numbers in thousands
Revenue
5/31/2018
5/31/2017
5/31/2016
5/31/2015
Total Revenue
39,831,000
37,728,000
37,047,000
38,226,000
Cost of Revenue
8,081,000
7,469,000
7,479,000
7,532,000
Gross Profit
31,750,000
30,259,000
29,568,000
30,694,000
Operating Expenses
Research Development
6,091,000
6,159,000
5,787,000
5,524,000
Selling General and Administrative
9,720,000
9,373,000
9,039,000
8,732,000
Non Recurring
-
-
-
-
Others
-
-
-
-
Total Operating Expenses
25,512,000
24,452,000
23,943,000
23,937,000
Operating Income or Loss
14,319,000
13,276,000
13,104,000
14,289,000
Income from Continuing Operations
Total...
Question 1 1 pts Desert Company reported the following at December 31, 2019: Sales Revenue Cost of Goods Sold $2,040,000 $1,400,000 $220,000 Operating Expenses Unrealized holding gain on AFS debt securities $120,000 Cash dividends received on the securities $8,000 For 2019, Desert would report Other Comprehensive Income of: $428,000 $420,000 $128,000 O $120,000 Question 2 1.5 pts Desert, Co. is preparing its 2019 financial statements. The company's accountant calculated Income from Continuing Operations to be $500,000, but upon further review...
Plano Co. 12/31/2018
Partial Trial Balance Data
Debits
Credits
Sales revenue
715,000
Interest revenue
61,000
Gain on sale of investments
111,000
Cost of goods sold
510,000
Selling expenses
149,000
Interest expense
31,000
General and administrative expenses
102,000
Plano had 50,000 shares of stock outstanding throughout the year.
Income tax expense has not yet been accrued. The effective tax rate
is 30%.
Required:
Prepare a multiple-step income statement with earnings per share
disclosure. (Amounts to be deducted should be indicated
with...
ACTUAL FORECAST 2018 2019 Total Revenue $ 71,879 Cost of Revenue $ (51,125) Gross Profit $ 20,754 Operating Expenses: Selling, General, and Administrative $ (14,248) Research and Development $ - Special Income/Other Charges $ (2,194) Total Operating Expenses $ (16,442) Operating Income $ 4,312 Net Interest Income $ (666) Pre-Tax Income $ 3,646 Provision for Income Tax (19.5%) $ (711) Net Income $ 2,935 Tag-It’s CEO has predicted a 10% increase in total revenue next year. Utilizing the percentage of...
1. Given the 2019 ratios of Verizon wireless what do EACH of these ratios indicate about the company specifically? (not just as a whole) 2. Lastly, at the end, in one paragraph what do these calculations (all together) mean for the companies financial health? Answers must be broken down into everyday language and not in "financial talk" Profit ratios: gross profit margin (gross profit / sales)*100 gross profit 77142000 sales 131868000 gross profit margin 58.50% operating profit margin (operating profit...
Please show all steps
LO9 M3-28. Compute and Interpret Liquidity and Solvency Ratios VERIZON Selected balance sheet and income statement information from Verizon Communications Inc. follows. COMMUN- ICATIONS INC. (V2) $ millions 2015 2014 Current assets... ..$ 22,280 $ 29,499 Current liabilities 35,052 27,987 Total liabilities .226,798 218,940 Equity 17,842 13,676 Earnings before interest and taxes. 32,974 21,379 Interest expense, gross..... 4,920 4,915 Net cash flow from operating activities. ..... .38,930 30,631 Module 3 Profitability Analysis and Interpretation 3-46 a.Compute...
Calculate the Company's Free Cash Flow for
2018.
12/31/18 12/31/17 Sales Cost Of Goods Gross Profit Selling & Adminstrative & Depr. & Amort Expenses Income After Depreciation & Amortization Non-Operating Income Interest Expense Pretax Income -11 -21 -20 Income Taxes Minority Interest Investment Gains/Losses Other Income/Charges 0 0 00 -9 -20 - 0 22 Income From Cont. Operations Extras & Discontinued Operations Net Income - 92 12/31/18 Depreciation Footnote Income Before Depreciation & Amortization Depreciation & Amortization (Cash Flow) Income...
Prestige Worldwide - Trial balance as of December 31, 2018: Gross Service Revenue $ 115,981,250 Bad Debt Expense $ 2,655,000 Discounts on Sales $ (3,575,000) Salaries $ 55,825,000 Benefits $ 14,178,292 Administrative $ 4,342,500 Insurance $ 325,000 Interest $ 164,575 Depreciation $ 3,200,000 Maintenance $ 435,500 Purchased Services $ 6,146,500 Rent $ 2,240,000 Supplies $ 9,169,813 Utilities-Electricity $ 356,000 Cash and Cash Equivalents $ 9,545,000 Short-term Investments $ 2,750,000 Net Accounts Receivables $ 7,125,000 Inventory - Supplies $ 1,135,000 Property...
OAKBROOK COMPANY Comparative Income Statements For Years Ended December 31, 2017 and 2016 2017 2016 Sales $ 980 $ 850 Less cost of goods sold 525 415 Gross profit 455 435 Less operating expenses: Wage expense 90 88 Depreciation expense 18 12 Rent expense 23 20 Miscellaneous expense 24 36 Total operating expenses 155 156 Operating income 300 279 Less other expenses: Interest 9 33 Income before tax 291 246 Less income tax expense 116 98 Net income $ 175...