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Alltel Terrell Williams ACG2021 SECTION 003

Alltel Terrell Williams ACG2021 SECTION 003. Executive Summary.

gertrude-lehmann
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Alltel Terrell Williams ACG2021 SECTION 003

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  1. AlltelTerrell Williams ACG2021 SECTION 003

  2. Executive Summary Alltel had a great year in 2005. They grew tremendously, due to the acquisition and merger of other major and minor wireless companies, such as US Cellular and Cingular wireless. Money was spent on replacing damaged networks and facilities after hurricane Katrina, but they helped their employees during the disaster. http://phx.corporate-ir.net/phoenix.zhtml?c=74159&p=irol-reportsAnnual

  3. Part A. Introduction • Scott T. Ford is the CEO • Little Rock, Arkansas is the location of the home office • Ending date of latest fiscal year was 12-31-05 • Alltel provides multiple services (television, satellite, mobile phone, wireless headphones, etc.). • The blue areas are Alltel’s main coverage areas.

  4. Part A. Audit Report • Thomson Financial is the independent auditor for Alltel. • Alltel is in great financial standing. They have a lot of different resources that is providing the corporation with income. If they lose money in one area the other areas of business make up for that small portion of loss.

  5. Part A. Stock Market Information • $56.97 is the recent stock price • $57.55 is the high for the year • $47.48 is the low for the year • Dividend per share • The information was given on 10/ 7/06 • Alltel is in very good standing and seems that it will stay that way or get stronger. • http://phx.corporate-ir.net/phoenix.zhtml?c=74159&p=irol-whoIs • http://www.alltel.com/corporate/media/history_detail.html

  6. Part B. Industry Situation and Company Plans • Alltel is a very strong corporation. The business is only becoming stronger, due to the acquiring of US Cellular and the agreement between them and two of the most recognizable wireless companies in Sprint and Cingular. • In the last few years, Alltel has more than tripled their revenues and operating income. Not to mention, their customer base has grown tremendously. • http://phx.corporate-ir.net/phoenix.zhtml?c=74159&p=irol-whoIs • http://www.alltel.com/corporate/media/history_detail.html

  7. Part C. Income Statement • The format is that of a multistep format. • 2004 2005 • charts in millions • Gross profit it increasing which means that Alltel is growing and earning more revenue.

  8. charts in millions The assets account has changed the most with the companies outstanding growth. The liabilities are decreasing. Part C. Balance Sheet

  9. Part C. Statement of Cash Flows Cash flows from operations are more than the net income for the past two years The Alltel corporation is growing through many long lived assets. The company is buying property and investing in itself. The primary source of the companies financing is through their stock sales. Overall, the cash has increased a great deal over the past two years.

  10. Part D. Accounting Policies Alltel’s accounting policies are the general accepted policies. Alltel offers retirement plans, stock option plans, debt, supplemental cash flow information, income taxes, contingencies, preferred and common stock, employee stock ownership plans, quarterly financial data, and business segments.

  11. Part E. Financial Analysis Liquidity Ratios • 2004 2005 • Working Capital 1560.5 2960.6 • Current Ratio 1.82 2.36 • Working capitol increased which allowed the current ratio to increase.

  12. Part E. Financial AnalysisProfitability Ratios 2004 2005 • Profit margin 12.69% 14% • Asset turnover .50 .40 • Return on assets 6.30% 7.62% • Return on equity 14.7 13.2% • The return on assets has increased, which means that income is on the rise.

  13. Part E. Financial AnalysisSolvency Ratio • Debt to equity • 2004 2005 • 1.32 .84 • Debt to Equity ratio is greatly improving and Alltel is starting to be owned by its stockholders.

  14. Part E. Financial AnalysisMarket Strength Ratios 2004 2005 • Price/earnings per share 17.5 15.9 • Dividend yield .85% .88% • The price/earnings ratio per share has increased for 2005. This is a good sign for the stockholders.

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