Annual Reports

Abstract

Course name Instructor’s name Assignment due date Annual Reports Analysis for Verizon Communications Inc. The following calculations show the current ratio for Verizon Communications Inc in 2021 and 2022 financial years. Current assets and current liabilities are indicated in million dollars. The current ratio demonstrates the capacity of an organization to meet its short-term obligations. The calculations show that the ratio was below 1 in the financial years 2021 and 2022 indicating that current liabilities exceeded current assets for both periods. Additionally, there was a decline in the current ratio from 2021 to 2022 indicated that the organization’s loss in its short-term financial strengths. The calculations for the profit margin ratio are as follows with net income and revenue indicated in million dollars. The changes in the profit margin ratio between 2021 and 2022 indicates a decline in the capacity of the current practices to generate profits for the company. The ratio decreased indicating that the company made smaller profits for every dollar generated in revenue. Management discussion and analysis of the 2021 reports indicates an assessment of the key internal and external factors influencing the performance of the organization during the period. The company advanced in various areas to increase diversification but further experienced forces including changes in exchange rates and tax rates. Minimizing risks was a major objective for the company during this period and it affected the performance. In 2022, the organization maintained that competitive nature of the industry was a major factor influencing the organization’s performance (Verizon Communications Inc., 2024). The auditors demonstrated that the annual reports accurately represented the financial position of Verizon Communications Inc. and that the company was committed to its obligations to the stakeholders. Verizon Communications Inc. has invested in gaining a...