Hi, this is the conclusion for the financial statement analysis. I need someone to check on my grammar mistakes. Also, what do you think about the conclusion? Is the onclusion able to show that Verizon is in the better financial position for investmenct? Please share your thought. Thanks.
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Despite the ten financial ratios, cash flows statement is another important financial data that shows the company's financial strength and stability. Cash flow statement is used to keep tack how much cash flows in or out from the company. Operating activities, for example, tell us how much cash the company generated from the businesses operations. A positive figure in this activity, the better for the company to sustain unnecessary needed to obtain external source.
On AT & T's cash flow statement, we can see that the operating activities in 2008 and 2007 were $ 33, 656,000 and $34,072,000 respectively. The result indicates the cash from operating was dropped by -1%. Although the percentage drop was low, but AT & T still have to acquire outside funds in order to maintain the operation of business, if it is necessary. On Verizon's cash flow, the operating activities were $26,620,000 in 2008 and $25,730,000 in 2007. There was a 2% sustainable growth within these two years. This implies that Verizon has funds in hand to support the daily operational cash flows activities. The analysis result shows that Verizon has better financial control in daily operation business. Whereas, AT & T need to cut back the operating activities' funds to generate better cash in hand.
Overall, the cash flows chart has illustrated that Verizon has ability to generate cash and increase the market value. This implies Verizon would be able to reduce debt, increase the dividends paid and repurchase more stock. In another words, Verizon perceived as a better financial value for investment.
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Despite the ten financial ratios, cash flows statement is another important financial data that shows the company's financial strength and stability. Cash flow statement is used to keep tack how much cash flows in or out from the company. Operating activities, for example, tell us how much cash the company generated from the businesses operations. A positive figure in this activity, the better for the company to sustain unnecessary needed to obtain external source.
On AT & T's cash flow statement, we can see that the operating activities in 2008 and 2007 were $ 33, 656,000 and $34,072,000 respectively. The result indicates the cash from operating was dropped by -1%. Although the percentage drop was low, but AT & T still have to acquire outside funds in order to maintain the operation of business, if it is necessary. On Verizon's cash flow, the operating activities were $26,620,000 in 2008 and $25,730,000 in 2007. There was a 2% sustainable growth within these two years. This implies that Verizon has funds in hand to support the daily operational cash flows activities. The analysis result shows that Verizon has better financial control in daily operation business. Whereas, AT & T need to cut back the operating activities' funds to generate better cash in hand.
Overall, the cash flows chart has illustrated that Verizon has ability to generate cash and increase the market value. This implies Verizon would be able to reduce debt, increase the dividends paid and repurchase more stock. In another words, Verizon perceived as a better financial value for investment.