Using this information, compare the similarities and differences in Debt Financing and Equity Financing. These ratios are calculated based on the annual statements.
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Verizon |
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U.S. Cellular |
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2015 |
2014 |
2015 |
2014 |
| Profit Margin |
% |
13.96 |
9.4 |
5.07 |
-1.21 |
| Net Income/Sales |
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| Return on Assets (Investment) |
% |
7.51 |
5.13 |
2.7 |
-0.72 |
| A) Net Income/Total Assets |
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| B) Net income/Sales X Sales/Total Assets |
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| Return on Equity |
% |
103 |
87.3 |
5.57 |
-1.42 |
| A) Net Income/Stockholders Equity |
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| B) Return on Assets (Investment)/ |
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| (1-Debt/Assets) |
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| Receivables Turnover |
Times |
9.78 |
9.08 |
6.45 |
8.35 |
| Sales/Receivables |
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| Avg. Collection Period |
Days |
36.8 |
39.64 |
55.84 |
43.1 |
| Accounts Receivable/Avg. daily credit sales |
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| Inventory Turnover |
Times |
105.13 |
110.22 |
44.82 |
14.58 |
| Sales/Inventory |
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| Fixed Asset Turnover |
Times |
59 |
4.3 |
2.4 |
3.04 |
| Sales/Fixed Assets |
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| Total Asset Turnover |
Times |
0.54 |
0.55 |
0.55 |
0.6 |
| Sales/Assets |
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