Comparison Between Two Companies

Eric Pruneda December 6, 2012 Introduction to monetary Accounting Section 1 Financial Statement Assignment AT&T vs. Verizon Telecommunication is champion of the fastest industries growing in the join States of America as well as worldwide. This is beca engage people ar fascinated with the engineering science that this assiduity brings to the humankind. Nonetheless, Traditional providers argon set about challenges due to the grueling competition with their fel branch beginning companies that brig the telecommunication products at a less high-priced products to the costumers. Here, I am going to canvass and analyze both of the most highly recognized companies in the telecommunication industry; AT&T and Verizon. I will use three dimensions to compare: up-to-the-minute symmetry as liquid state ratio, Debt to Capital ratio as Solvency ratio, and harvesting on assets ratio as profitability ratio. A authentic ratio liquid ratio measures the short-term ca pacity of a company to correct its short-term debts obligation and to meet out of the blue(predicate) needs for cash. fluidness ratio is the sure ratio, computed as underway assets divided by current liabilities. The current ratio is a more honorable indicator of liquidity than working capital.

Current ration graph In swan to determine the current ratio of a company we have to divide the total current assets by the total current liabilities. Most corporations release their financial study quarterly or yearly. We need to utilize the eternal rest sheet in order to abstract the cash amounts of assets a nd liabilities accounts. In the table above,! we can see that both companies are set about a challenging time. Nonetheless, we can see that Verizon is doing slightly break than AT&T because the current ratio is instead better. We can agree that both companies have a embarrassed current ratio, because they belong to the telecommunication industry, and in this industry corroborate the concequences of low current ratio because the company sells and buys on specify so short-term funds...If you want to get a replete(p) essay, order it on our website: OrderCustomPaper.com

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