Comparison Between Verizon And AT & T

Verizon's liquidity rates have a very inconsistent trend analysis. Verizon has weak short term solvency or poor ability to meet the company's short term obligations as compared to AT& T. Verizon has a better chance at meeting short term requirements with their assets instead of their cash. And in 2015 Verizon had their lowest asset to liability coverage with 63 cents of current assets for every dollar of current liabilities.
Verizon's leverage ratios indicate that they are able to cover the firm's debt. However they are not as strong as AT&T is when it comes to covering their debt and the interest associated with it. Good news is for Verizon that they are able to pay off their debt with their earnings before tax 6.7 times. However, AT&T is stronger with their ability to pay off debt with cash 11.4 times a year.

With a high rate of inventory turnover at 42 times in one year, they only make 53 cents of sales for each of their assets. In comparison to their competitors they do better at efficiently collecting their receivables from consumers with 9.8 times a year and AT& T only has a receivables turnover ratio of 8.8 for 2015.
Verizon is strong in return on equity with their ability to efficiently manage assets and gain earnings and has grown in this over the last five years. While in return on assets there has not been much growth, unlike profit margin where the firm has an increasing efficiency in managing operations. For 2015 Verizon had 14 cents for every dollar of sales that was a profit earned, while AT&T only had 9 cents for every dollar. AT&T did excel in return on assets as compared to Verizon but fell short with only 11 cents to cover every dollar of equity of the