Determine verizons fixed asset turnover ratio

Assignment Help Financial Accounting

Reference no: EM13900322

Verizon Communications Inc. is a major telecommunications company in the United States.

Verizon's balance sheet disclosed the following information regarding fixed assets:

	Dec. 31, 2004 (in millions)	Dec. 31,2003 (in millions)
Plant, property, and equipment	$185,522	$180,940
Less accumulated depreciation	111,398	105,638
	$ 74,124	$ 75,302

Verizon's revenue for 2004 was $71,283 million. The fixed asset turnover for the telecommuni- cations industry averages 1.10.

a. Determine Verizon's fixed asset turnover ratio.

b. Interpret Verizon's fixed asset turnover ratio.

Reference no: EM13900322

Questions Cloud

Explain why companies use marketing channels : Information, promotion, contact, matching, and negotiation help to complete transactions. Physical distribution, financing, and risk taking help to fulfill the completed transactions. Explain why companies use marketing channels and discuss the fu..

Describe two motivation theories : Case Study: Virgin Media-Motivating and engaging employees for better business. Explain the term motivation. Describe two motivation theories

Suppose a firm''s production function : Suppose a firm's production function is given by f (L ,K) =5 (LK)1/2 , where L denotes the use of labor and K denotes the use of capital. Letting w denote the price of labor and r the price of capital, suppose that w = $6, and r = $48. Answer the fol..

Calculate the free-market equilibrium : Suppose that the demand for a good that is produced competitively is given by the equation Qd =61- (1/5)P , and its supply is given by the equation Qs =(1/4)P -2 Answer the following questions for this market.

Determine verizons fixed asset turnover ratio : Verizon's revenue for 2004 was $71,283 million. The fixed asset turnover for the telecommuni- cations industry averages 1.10. Determine Verizon's fixed asset turnover ratio. Interpret Verizon's fixed asset turnover ratio.

Use a graph to illustrate consumer''s optimal choice : Suppose that at the bundle (X1*,X2*) the consumer is maximizing his utility subject to his budget constraint and the price ratio exceeds the absolute value of his marginal rate of substitution. Use a graph to illustrate this consumer's optimal choice..

Quantitative and technological analysis : Quantitative and Technological Analysis - However, it depends upon the market share of the new firm. When, if ever should a government intervene to prevent a merger or takeover?

Describe the optimal consumption choices : suppose that a consumer's preference between the good x and y are represented by the utility function u(x,y)= x+y. If these two goods have the same price, describe the optimal consumption choices of this consumer.

Describe a real government policy in the context : Describe a real government policy in the context of macroeconomic principles. Spend one or two pages telling about its history, the economic problem it intended to tackle and the intended goals. Who were the agents pushing it forward? Who was against..

User Account

All Pages