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  • June 2017
  • Case
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AT&T Versus Verizon: A Financial Comparison

By: V.G. Narayanan and Joel L. Heilprin
  • Format:Print
  • | Language:English
  • | Pages:11
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Abstract

This case asks students to prepare a report comparing the financial and operating performance of AT&T and Verizon. Taking the perspective of a communications industry analyst, they must also consider the differences between and implications of the companies' business strategies and the differences between the technology and growth rates of the wireless and wireline business segments. As part of this exercise, students reorganize the balance sheets in terms of operating and financial components, calculate changes in working capital, derive unlevered free cash flow (FCF), and apply DuPont style ratios and margin analysis on a consolidated—as well as a segment—basis. Students must also consider the effects of actuarial gains and losses on operating results and how analysts might adjust for those effects. The case was designed for first-year MBA students in financial statement analysis (FSA) and accounting classes, but it could also be used in other courses to prepare for discounted cash flow (DCF) exercises.

Keywords

Financial Statements; Operations; Analysis; Business Model; Accounting; Performance Effectiveness; Telecommunications Industry

Citation

Narayanan, V.G., and Joel L. Heilprin. "AT&T Versus Verizon: A Financial Comparison." Harvard Business School Brief Case 917-543, June 2017.
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About The Author

V.G. Narayanan

Accounting and Management
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Related Work

    • June 2017
    • Faculty Research

    AT&T Versus Verizon: A Financial Comparison (Brief Case)

    By: V.G. Narayanan and Joel L. Heilprin
    • June 2017
    • Faculty Research

    AT&T Versus Verizon: A Financial Comparison, Spreadsheet for Students (Brief Case)

    By: V.G. Narayanan and Joel L. Heilprin
    • June 2017
    • Faculty Research

    AT&T Versus Verizon: A Financial Comparison, Spreadsheet for Instructors (Brief Case)

    By: V.G. Narayanan and Joel L. Heilprin
Related Work
  • AT&T Versus Verizon: A Financial Comparison (Brief Case) By: V.G. Narayanan and Joel L. Heilprin
  • AT&T Versus Verizon: A Financial Comparison, Spreadsheet for Students (Brief Case) By: V.G. Narayanan and Joel L. Heilprin
  • AT&T Versus Verizon: A Financial Comparison, Spreadsheet for Instructors (Brief Case) By: V.G. Narayanan and Joel L. Heilprin
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