Financial Analysis Assignment Example | Topics and Well Written Essays - 500 words - 1

Financial Analysis - Assignment Example The move have been associated with the recent change plan in the company that has forced customers to pay monthly installments of over twenty months other than offering subsidized phones (Zachariadis, 2014). The installment and the contract plan both present an effect of binding the customers to the carriers. Having a huge number of customers floating without an obligation to the company presents a financial risk since the number of sales will go down. Apart from the customers issues the company is also facing financial risks from competitors such as T-mobile US inc., Sprint corp. and Verizon communication Inc. The three competitors present a financial risk to the company as they compete with AT &T for the available market (Summary for AT&T Inc.- Yahoo! Finance, 2014). The graph below is an income statement of the AT & T Inc. the total revenue of the company has registered improvement as per the information of the last three years. Operating income has also declined with 2013 registering the period when the company utilized a lot of capital as operating capital. Diluted EPS indicate the profit per each share. The company recorded high profit per share in the year 2013 as compared to the two different years (Summary for AT&T Inc.- Yahoo! Finance, 2014). The total revenue of the company increased from $127, 434 to $ 132,447 showing a great improvement that was the highest in the past five years. However, the gross profit recorded a decline from $77,288 to $71,836. The company was able to register the highest gross profit in 2013. However, it is the within the same year that the company utilized the highest amount of money $30,447 as operating income. Additionally, in 2013, the company was able to register a high income amount of around $18,249 with a decrease of up to $ 6,224 in the year 2014. The company also recorded a profit per share