Verizon communication Inc. is an American telecommunications company recognized worldwide due to its services and net worth. The company acts through various subsidiaries, and it is known to be one of the largest and leading information, communication and entertainment services and product providers in the United States and the world at large. It is referred to as “the Internet of Things” since all the services and products provided, including the broadband services, are rendered via wireline and wireless network. In its earlier years, it was a component of the Dow Jones Industrial Average. The company was founded in the year 1983, with its headquarter situated on 1095 Avenue of Americas, New York City, New York, United States. The company's main products include; cable television, landline, mobile phone, IPTV, digital media, internet, telematics, digital television, and broadband. Considering its statements of cash flow, balance sheet and income statements as per the 2019 financial year, it’s the second-largest among the telecommunication companies within the United States and the world at large.
Verizon communication Inc.'s financial performance has been improving since its establishment, and the 2019 annual report suggested more promising results in the balance sheet, income statement and the statements of cash flows. In the 2019 financial year, revenues increased by approximately $ 1005 million to reach the $ 131 868 million mark. The increase in the revenues was attributed to the reduction in the cost of goods and services delivered from $ 55508 million in 2018 to $ 54726 million. Furthermore, in 2019, the Verizon communication Inc. recorded an increase in the gross profit from $ 75 355 million to $ 77 142 million as the SG&A expenses and operating expenses reduced from $ 31083 million to $ 29 896 million and $ 108585 million to $ 101 490 million respectively. Furthermore, the operating income for Verizon communication increased from $ 22278 million to $ 30378 million posing a great improvement attributed to a reduction in the income taxes by $ 639 million and an increase in income from the continuous operations by $ 3749 million.
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Verizon communication Inc.'s performance was promising, especially in 2019, due to increased assets, common stock and shareholders' equity. The company witnessed an increase in their total current assets by $ 2837 million due to increased receivables, inventory and pre-paid expenses with reductions in their cash at hand. The company witnessed a slight increase in their total long-term assets from $ 230193 million in 2018 to $ 231560 million in 2019, attributed to an increase in property, plant and equipment and intangible and goodwill assets. The company witnessed an overall increase in its total assets by $ 26898 million. However, their total liabilities increased by $ 18773 million due to the increase in their total current liabilities and long term debts. The increase in shareholders' equity by $ 8125 million in 2019 resulted from an increase in the retained earnings.
Verizon has witnessed ups and downs in its cash flow statement in its 2019 financial year. Their cash flow from operating activities increased slightly by $ 1407 due to increased net income, total non-cash items, change in account receivables and change in inventories. Furthermore, the company witnessed an increase in its cash flow from all their investing activities by $ 353 million. However, the company saw a drastic decrease in their cash flow from financial activities by $ 2787 million due to the changes in long term debts, current debts, debt issuance and common equity issued.
In conclusion, Verizon communication Inc.'s financial performance has been improving over the past years. In their 2019 annual report, the company has had great positive adjustments in their balance sheet, income statement and cash flows. The positive outcomes have been attributed to their management's effective decisions and strategies in increasing their customer base through quality services and products across the world.
Reference
Verizon Communication Inc. (2020). Annual report 2019 . Retrieved from https://www.verizon.com/about/sites/default/files/2019-Verizon-Annual-Report.pdf
