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Evaluating Financial Performance Of GTE - Example Papers

Evaluating Financial Performance Of GTE

Current event article from “Financial World” reflecting the use of financial ratios to assess the operating health of GTE telephone company
GTE, known for years as poorly run company GTE through some well-timed transformation has become one of the leading, profitable and largest local telephone company with combined wireline and wireless operations reaching about a third of U.S. population. Since 1992, GTE offers telephone service across all states in U.S. As a result its revenue tripled to $21 billion. Moreover its transition from local telephone carrier to long distance carrier in few states will increase the revenue of the company.
The article refers certain key ratios comparing the ...

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grown 35% annually. GTE’s Return on Equity was 40% that far exceeds rest of its major competitors listed. The company’s boosting margins and overall returns are clearly pictured from the Net Profit Margin of 2.1%, a nice 36% improvement over the prior year. The company announced a plan to streamline its telecom operation by reducing expenses by $1.1 billion. The article estimates an increase in Earnings per Share from $3.18 to $4.5. GTE’s P/E Ratio of 15 is in par with its competitors.
The detail description of the company’s past performance and current management strategies on telecom operations makes me feel that analysis on the GTE’s continuous profitable growth for the past 4 years and company’s operating health is fair and accurate. From the article, it looks like GTE is positioning itself to prosper in deregulated world.

Analyzing GTE’s operation and financial strategies, my advice to the company is to improve its cellular business which currently has a growth rate of ...

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Evaluating Financial Performance Of GTE. (2005, November 6). Retrieved April 30, 2025, from http://www.essayworld.com/essays/Evaluating-Financial-Performance-Of-GTE/36072

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PAPER DETAILS

Added: 11/6/2005 04:05:04 PM
Category: Economics
Type: Premium Paper
Words: 349
Pages: 2

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