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Evaluating Financial Performance Of GTE - Example Papers

Evaluating Financial Performance Of GTE

Current event article from �Financial World� reflecting the use of financial ratios to assess the operating health of GTE telephone company
GTE, known for years as poorly run company GTE through some well-timed transformation has become one of the leading, profitable and largest local telephone company with combined wireline and wireless operations reaching about a third of U.S. population. Since 1992, GTE offers telephone service across all states in U.S. As a result its revenue tripled to $21 billion. Moreover its transition from local telephone carrier to long distance carrier in few states will increase the revenue of the company.
The article refers certain key ratios comparing the ...

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grown 35% annually. GTE�s Return on Equity was 40% that far exceeds rest of its major competitors listed. The company�s boosting margins and overall returns are clearly pictured from the Net Profit Margin of 2.1%, a nice 36% improvement over the prior year. The company announced a plan to streamline its telecom operation by reducing expenses by $1.1 billion. The article estimates an increase in Earnings per Share from $3.18 to $4.5. GTE�s P/E Ratio of 15 is in par with its competitors.
The detail description of the company�s past performance and current management strategies on telecom operations makes me feel that analysis on the GTE�s continuous profitable growth for the past 4 years and company�s operating health is fair and accurate. From the article, it looks like GTE is positioning itself to prosper in deregulated world.

Analyzing GTE�s operation and financial strategies, my advice to the company is to improve its cellular business which currently has a growth rate of ...

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Evaluating Financial Performance Of GTE. (2005, November 6). Retrieved November 28, 2024, from http://www.essayworld.com/essays/Evaluating-Financial-Performance-Of-GTE/36072

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PAPER DETAILS

Added: 11/6/2005 04:05:04 PM
Category: Economics
Type: Premium Paper
Words: 349
Pages: 2

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