Verizon Finance

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1. Calculations for Verizon Wireless
a. Market Value Measures
i. Market-to-book = market value per share / book value per share 1. 3.83
ii. P/E Ratio = price per share / earnings per share 2. 44.52/.66=144.03
b. Profitability Measures
iii. ROE = net income / total equity
3. 2011 2,404,000/35,970,000= 6.68%
4. 2010 2,549,000/38,569,000= 6.60%
iv. ROA= net income / total assets
5. 2011 2,404,000/230,461,000= 1.04%
6. 2010 2,549,000/220,005,000 = 1.15%
v. Profit Margin = net income / sales
7. 2011 2,404,000/110,875,000= 2.17 %
8. 2010 2,549,000/106,565,000= 2.39%
c. Asset Management Measures
vi. Receivables Turnover sales / accounts receivable 9. 2011 110,875,000/11,776,000= 9.41 times
10. 2010 106,565,000/11,781,000= 9.0 times
vii. Inventory Turnover cost of goods sold / inventory 11. 2011 45,875,000/ 940,000= 49 times
12. 2010 44,149,000/ 1,131,000= 39 times
d. Short Term Solvency
viii. Quick Ratio (current assets – inventory) / current liabilities 13. 2011 (30,939,000-940,000)/ 30,761,000 = .98 times 14. 2010 (22,348,000-1,131,000)/ 30,597,000= .69 times ix. Current ratio current assets/current liabilities 15. 201130,939,000/ 30,761,000 = 1.01 times

16. 2010 22,348,000/ 30,597,000 = .73 times
e. Long term solvency
x. Interest Coverage EBIT / interest
17. 2011 5,555,000/ 632,000 = 8.79 times
18. 2010 5,757,000/ 679,000 = 8.47 times
xi. Long Term Debt Ratio long-term debt / (long-term debt + total equity) 19. 2011 50,303,000/( 50,303,000+35,970,000)= .583 or 58% 20. 2010 45,252,000/(45,252,000 +38,569,000)= .539 or 54% xii. Total Debt Ratio (total...
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