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Data comparison of AT&T and Verizon for two most recent fiscal years Case Study

Category: Finance & Accounting Pages: 2 Type: Case Study Level: College
millions 8,293millions) and for Financing Activities ($16,014 millions $6,128 millions)

(AT&T Inc. Financial Review 2007, 2008, p.26).

During fiscal years 2006-2007, contrary to AT&T, Verizon's net assets and its

annual income decreased. In 2007, its net assets declined from $188804 millions in 2006

to $186959 millions in 2007 which was about 1% decrease. Its annual income also had to

go through a 6.6% decrease ($7419 millions in 2006 and $6926 millions in 2007)

(Verizon Communication Inc. Historical Financial Information, 2007, pp. 1-10). For

2006 and 2007, both AT&T and Verizon both considerably increased their operating

incomes along with operating revenues, operating expenses. For AT&T, operating

revenues, increased $55,873 millions, or 88.6%, in 2007 and $19,291millions, or 44.1%,

in 2006. These increases were primarily due to AT&T acquisitions and its increased

demand for data products.Verizon operating revenue also raised to $9, 3469 millions in

2007 compared to $8, 8078 million in 2006 or 61.2% increase. Its operating income

and operating expenses almost became double in 2007 with an increased of 86.7% and

98.3% compared to 2006. Operating income raised to $ 20,404 in 2007, while it was $

10,288 millions in 2006. Operating expanses also reached to $ 98,524 millions, in 2007,

almost double $ 52,767 millions 2006. Overall Verizon, observed an increase of 61.2%,

in its operating revenues, 3.8% in operating expenses and 17.8% in operating income

were observed during 2006-2007. During 2006-2007, both T&T and Verizon income

tax values also increased. AT&T also increased $2,728, or 77.4%, in 2007 and $2,593 in

2006. The increase in income taxes in 2007 was