AT&T VERSUS VERISION: A FINANCIAL COMPARISON

  1. For each company consider consolidated financial results and provide margin analyses. (Hints. all possible income statement ratios, sales growth, operating cash flow as a percentage of sales etc.). What themes are being played out for either or both companies? Describe. 2. Calculate following measures for companies for the fiscal years: Operating working Capital, Net Long-term assets, Net Debt, and Net Asset. Show that net assets is equal to net capital. Next prepare working capital ratios for each company and provide your comments on similarities and differences with underlying reasons. 3. Provide overall profitability analyses (ROA and ROE Decompositions) of both companies using traditional and alternative approaches (refer to 4.0 Inclass Exercise provided in Class 4 Module) and explain the results. 4. What are the driving factors behind each firm’s wireless and wireline performance? Explain likely relationships. 5. What trends do you see in overall wireline and wireless industries? Has either, or both, company(s) been reinvesting in its business? Provide your evidence.