Verizon Communications AnalysisVerizon Communications, formed from the merger of two large, successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunications company. The company serves a large portion of the market in the United States. However, the company faces certain strengths and weaknesses that affect the way the company formulates its strategies. Internal Analysis: The IFE (Internal Factor Evaluation) matrix summarizes the main strengths and weaknesses of Verizon Communications. Employee satisfaction. .05 3 .152. Well positioned company. .15 3 .453. Increase in revenue and EPS. .10 3 .304. Offer fiber optic lines. .20 4 .805. The largest directory publisher. .05 4 .20Weaknesses1. Not much emphasis on R&D. .05 3 .152. Not yet achieved its goal. .05 2 .103. Worldwide coverage. .10 3 .304. Bad financial situation. .20 4 .805. Technological skills. .05 2 .10TOTAL 1.00 3.35Strengths1. Verizon Communications announced a salary increase and job security for its employees, which will result in increased employee (management) morale.2. Verizon serves 49 of the top 50 markets in the United States, implying that the company is well positioned among its (marketing) competitors.3. There is an increase in the 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 expanded fiber optic lines to homes and businesses will give the company a competitive advantage over cable companies (production/operations).5. Verizon Communications is the world's largest telephone directory publisher. Weaknesses1. Veri...... middle of paper ...... there is an insignificant change in Avon's sales figures (finance/accounting). 1.02Debt-to-equity ratio -27 -43.3Long-term debt-to-equity ratio 0.23 0.38Times interest earned ratio 16.06 9.7Activity ratioInventory turnover 10.03 9.72Asset turnover fixed assets 3.98 3.84 Total asset turnover 1.85 1.87 Accounts receivable turnover Average collection period Profitability ratios G Ross profit margin 0.14 0.12 Operating profit Margin 0.13 0.11 Net profit margin 0. 08 0.07Return on total assets 0.16 0.13Return on equity 0.16 0.13Earnings per share 2.26 1.87Price-earnings ratioGrowth ratiosSales 0.03Net income 0.2Earnings per share 0.2Dividend per action