Verizon Communications AnalysisVerizon Communications, born from the merger of two large and successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunications company. The company serves a large part of the market in the United States. However, the company faces some strengths and weaknesses that influence how the company formulates its strategies. Internal Analysis: The IFE (Internal Factor Evaluation) matrix summarizes the main strengths and weaknesses of Verizon Communications. INTERNAL KEY FACTORS WEIGHTS RANKING SCORES Strengths1. Employee satisfaction. .05 3 .152. Well positioned company. .15 3 .453. Increase in revenue and EPS. .10 3 .304. It offers fiber optic lines. .20 4 .805. The largest directory publisher. .05 4 .20Weak Points1. Not much emphasis on R&D. .05 3 .152. He hasn't reached his goal yet. .05 2 .103. Global coverage. .10 3 .304. Bad financial situation. .20 4 .805. Technological skills. .05 2 .10 TOTAL 1.00 3.35 Strengths1. Verizon Communications has announced an increase in salary and job security for its employees which will result in increased employee morale (management).2. Verizon serves 49 of the top 50 markets in the United States, implying that the company is well positioned among its competitors (marketing).3. There is an increase in revenue and earnings per share (EPS) of the company which will attract investors to invest their money in the company (finance/accounting).4. Verizon's plan to offer extended fiber optic lines to homes and businesses will give the company a competitive advantage over cable companies (production/operations).5. Verizon Communications is the largest telephone directory publisher in the world. Weak Points1. In truth… halfway through the document… this is an insignificant change in Avon's sales data (finance/accounting). FINANCIAL RATIOS FINANCIAL RATIOS 2002 2001 Liquidity ratios Current ratios 1.03 1.29 Quick ratios 0.72 0.87 Leverage ratios Debt/total equity ratio 1.03 1.02 Debt to equity ratio -27 -43.3 Ratio long-term debt/equity 0.23 0.38 multiplied by accrued interest ratio 16.06 9.7 Asset ratios Inventory turnover 10.03 9.72 Asset turnover 3.98 3.84 Total asset turnover 1.85 1 .87 Credit turnover Average collection Period Profitability ratios Gross profit margin 0.14 0.12 Operating profit margin 0.13 0.11 Net profit margin 0.08 0.07 Return on total assets 0.16 0.13 Return on equity 0 .16 0.13Earnings per share 2.26 1.87Price-earnings ratioSales ratios 0.03Net profit 0.2Earnings per share 0.2Dividend per share