Business Finance Dish Network Anaylsis

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Business Finance
Term Paper
Assignment 2
DISH Network

Submitted by:
Andrew Pelkey
November 20, 2012
For:
Mr. Joel Rossmaier
I certify that the content of this paper was written by me and that all sources have been appropriately cited:
______________________________________________________________________________________ Table of Contents

Chapter 1: Introduction …...………………………………………………………… 3
Chapter 2: Financial Ratios…………………………………………………………..5 * Liquidity ratios………………………………………………………………...5 * Activity ratios……………………………………………………………….....8 * Leverage ratios ………………………………………………………………13 * Profitability ratios …………………………………………………………....17 * Market value ratios…………………..……………………………………….24

Chapter 3: One-year projection…………………………………………………......27
Chapter 4: Conclusion ……………………………………………………………...31
Appendix A: DISH Network’s financial statements………………………….35
Appendix B: DIRECTTV financial statements …………………….39
Appendix C: DISH Network’s ratios template…………………………. ….46

Chapter 1: Introduction

DISH Network is ranked second as a provider of satellite based pay television that includes premium movies, SIRIUS radio, on-demand video service, and basic video programming. DISH goes even further to offer bundled packages with voice and internet services through its partnerships with communication providers (Overview, 2012). DISH Network began its ambitious dreams in 1980, at which time the company was known as EchoStar. In 1987, EchoStar obtain its license to be a direct satellite broadcasting company. The company achieved a great success rate launching its satellites into space, and many people were initially skeptical of the idea. Then in 1997, DISH passed a milestone of 1 million customers that seemed to launch the company’s success to achieve greater milestones. It is obvious to see as to why the company is named DISH Network due to the relevance satellite dishes have in accordance to the company. The company is in a constant battle with keeping up with the demands for innovation in technology and its customers. DISH is focused on giving its customer the ability to have quality channels at a more affordable price. Charlie Ergen is the leader of the DISH Network and confirms the company’s commitment by challenging competitors to not burden subscribers with wasteful spending, and DISH will always offer the lowest everyday pricing nationwide (Overview 2012). To say the least, DISH does have many competitors and one in particular is Direct TV.

Direct TV is the main competitor of DISH Network and is the reason as to why DISH is second overall in satellite based pay in the United States. Direct TV takes its competition even further being able to compete with cable companies including the pay-television market involving Comcast. Through its subsidiaries and affiliated companies in the United States, Brazil, Mexico and other countries in Latin America, DIRECTV provides digital television service to 19.91 million customers in the United States and 13.67 million customers in Latin America (Corporate Profile). It was founded in 1990 by Howard Hughes who went through a mountain of problems to achieve his vision. DIRECTTV launched its services in 1994, and made its main focus in operations that include some of the world's most advanced technologies in the delivery of a seamless viewing experience (Company Profile, 2012).

Chapter 2: Financial Ratios

Financial ratios are crucial tools that financial analysts use to learn about a company’s performance and financial position. It is important to note that financial ratios are concerned about making projections about the company’s future as well. Financial ratios are valuable as analytical tools because these ratios contribute in making an analysis about a company’s past performance and that give analyst the chance to make financial comparisons with it main competitors. In order to calculate the key financial ratios for...
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