Sprint and Verizon Vertical and Horizontal Analysis
The vertical analysis for Sprint’s balance sheet shows that over 60% of the company’s assets are held in its wireless licenses with the FCC and property, plant and equipment, neither of which is readily liquid. Also, 54% of the Sprint’s liabilities are long-term debt. These items show the company may be at risk to repay its debt. The horizontal balance sheet analysis for Sprint shows that assets generally increased in 2009 and liabilities overall decreased in 2009.
The vertical income statement for Sprint shows a decrease in the company’s net loss as a percent of revenues over the past two years and the horizontal analysis shows a decrease in revenues in 2008 and 2009 from 2007, but also resulted in lower expense and lower net loss.
The vertical analysis for Verizon’s balance sheet shows 72% of the company’s assets are held in its wireless licenses with the FCC and property and equipment. Like Sprint, neither of these assets is highly liquid to pay off debt if needed in the short term. Verizon’s liabilities are evenly distributed with only 31% held in long term debt.
The vertical income statement for Verizon shows a decrease in net income of approximately 2% year over year as a percentage of revenue. The horizontal income statement shows 2009 resulted in the same year financially as 2007 after an increase in revenues and net income in 2008.
Standard & Poor’s Industry Survey’s page on their website provides ”information about the current industry environment, industry trends, key industry ratios and statistics, how to analyze a company, a glossary of terms and a comparative company financial analysis” (S&P).
References
Industry Surveys Page. (n.d.). Retrieved November 2, 2010 from http://www.standardandpoors
.com/products-services/industry_surveys/en/us
Sprint Nextel Corporation. (2010, October 2). Form 10-K. Retrieved October 11, 2010 from http://www.sec.gov/Archives/edgar/data/101830/000119312510042491/d10k.htm Sprint Page. (2010,
The vertical income statement for Sprint shows a decrease in the company’s net loss as a percent of revenues over the past two years and the horizontal analysis shows a decrease in revenues in 2008 and 2009 from 2007, but also resulted in lower expense and lower net loss.
The vertical analysis for Verizon’s balance sheet shows 72% of the company’s assets are held in its wireless licenses with the FCC and property and equipment. Like Sprint, neither of these assets is highly liquid to pay off debt if needed in the short term. Verizon’s liabilities are evenly distributed with only 31% held in long term debt.
The vertical income statement for Verizon shows a decrease in net income of approximately 2% year over year as a percentage of revenue. The horizontal income statement shows 2009 resulted in the same year financially as 2007 after an increase in revenues and net income in 2008.
Standard & Poor’s Industry Survey’s page on their website provides ”information about the current industry environment, industry trends, key industry ratios and statistics, how to analyze a company, a glossary of terms and a comparative company financial analysis” (S&P).
References
Industry Surveys Page. (n.d.). Retrieved November 2, 2010 from http://www.standardandpoors
.com/products-services/industry_surveys/en/us
Sprint Nextel Corporation. (2010, October 2). Form 10-K. Retrieved October 11, 2010 from http://www.sec.gov/Archives/edgar/data/101830/000119312510042491/d10k.htm Sprint Page. (2010,
References: Industry Surveys Page. (n.d.). Retrieved November 2, 2010 from http://www.standardandpoors .com/products-services/industry_surveys/en/us Sprint Nextel Corporation. (2010, October 2). Form 10-K. Retrieved October 11, 2010 from http://www.sec.gov/Archives/edgar/data/101830/000119312510042491/d10k.htm Sprint Page. (2010, November 3). Retrieved November 3, 2010 from http://www.sec.gov/cgi- bin/browse-edgar?action=getcompany&CIK=0000101830&owner=exclude&count=40 Verizon Communications, Inc. (2010, February 26). Form 10-K. Retrieved October 11, 2010 from http://www.sec.gov/Archives/edgar/data/732712/000119312510041685/d10k.htm Verizon Page. (2010, November 3). Retrieved November 3, 2010 from http://www.sec.gov/cgi- bin/browse-edgar?action=getcompany&CIK=0000732712&owner=exclude&count=40