Verizon Communications, Inc.
2012 SEC 10-K Annual Reports Analysis Project
November 30, 2013
Accounting for Non-accounting Managers
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Table of Contents
Executive Summary 3
History of the Company 3
Industry Overview 4
Competitive Landscape 5
Financial Data Verizon Communications Inc. and Subsidiaries 5
Financial Analysis of Key ratios 6
Asset Productivity Ratios 6
Financial Strength Ratios (Liquidity) 6
Profitability Ratios 7
Challenges and Accomplishments 2011 - 2012 8
VZ Ownership Summary 9
Appendix 1 Asset Productivity Ratios 9
Inventory ...view middle of the document...
I work for the Information Technology Strategy & Planning organization partnering with all the strategic line of business (LOB) across the Verizon footprint. Unambiguously, my current assignment sparked the interest to use Verizon as my research subject. My objective in researching Verizon’s financial statements was gaining a better understanding of the company’s short and long term goals, once again the old adage "Study the past if you would define the future...” has proven to be correct. As I embarked on this journey, I reviewed the requirements, after selecting Verizon, and subsequently realized that my choice was not a “traditional” manufacturing entity; as such I focused my analysis on key types of financial ratios. My analysis will discuss Verizon’s performance as it relates to Asset Productivity, Financial Strength, and Profitability. Through my research, paired with the course’s content my initial impression of this project changed, as did my appreciation for the role of the Verizon’s Financial Management team.
I will also answer the question: Why I would or would not buy their stock if I was an investor?
History of the Company
Verizon Communications started in 1983 as Bell Atlantic (based in Philadelphia) with a footprint covering New Jersey to Virginia and emerged as part of the 1984 breakup of AT&T into seven "Baby Bells." In 1997, Bell Atlantic merged with another Regional Bell Operating Company, NYNEX, based in New York City with a footprint spanning from New York to Maine. The combined company kept the Bell Atlantic name. Then in 2000 Bell Atlantic merged with former independent phone company GTE Corporation and adopted the name "Verizon", a combination of VERITAS, the Latin word connoting certainty and reliability, and horizon, signifying forward-looking and visionary.
Verizon is comprised of two reportable business segments. Verizon's business is comprised of two reportable segments: (1) Verizon Wireless provides wireless voice and data services and mobile phone equipment across one of the most extensive and reliable wireless networks in the world. Currently it is a joint venture between Verizon (US wireless operations & services) and Vodafone Group, which was formed in June 2000, and (2) Verizon's Wireline segment provides customers with communication services, both in the United States and internationally in 150 countries, including voice, broadband video and data, network access, long distance, and other services, to residential and small business customers and carriers, as well as next-generation IP network services and communications solutions to medium and large businesses and government customers. Verizon organizes its service and product offerings by the primary market targeted by these offerings – mass markets, global enterprise, global wholesale and other.
Verizon competes against other national wireless service providers, including AT&T, Sprint Nextel Corporation and T-Mobile USA, as well as...