communications: equipment and services presented by team #9
TRANSCRIPT
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Communications:Equipment and Services
PresentedBy
Team #9
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FirmsCIENA Corporation
Lucent Technologies Inc.
AT&T Corporation
Nokia Corporation
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CIENA Corporation Background Information
CIENA Corporation designs, manufactures and sells open architecture, DWDM systems for fiberoptic communications networks, optical networking solutions and access systems
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Further Background Information
Sector: TechnologyIndustry: Communications EquipmentMarket Cap(Mil)$ : 32,664.53Employees: 2,775
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Key RatiosDividend InformationYield %=0.00Annual Dividend=0.00Payout Ratio=0.00
Financial StrengthQuick Ratio=2.81Current Ratio=4.69Total Debt/Equity=0.00
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More Key RatiosManagement EffectivenessReturn on Equity=12.72Return on Investment=11.93Return on Assets=10.06Financial Leverage- ROE>ROA –favorablePer share data earnings=0.27$
ProfitabilityGross Margin%=44.41Operating Margin%=12.56Profit Margin%=9.48
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Strengths -Profitability Compared with Industry
CompanyGross Margin =44.41Operating Margin= 12.56Profit Margin=9.48
IndustryGross Margin=46.83Operating Margin= 1.89Profit Margin=-0.68
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Lucent Technologies,Inc.LU designs, develops, manufactures and services systems and softwareEnables network operators and other service providers to provide wireline and wireless access, local, long distance and int’l voice, data and video services and cable service
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Background Information
Sector: TechnologyIndustry: CommunicationsEmployees: 153,000Market Cap(Mil)$: 51,555.36
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Key Ratios
Dividend InformationYield %=.52Annual Dividend=0.08Payout Ratio%=13.16
Financial StrengthQuick Ratio=1.32Current Ratio= 2.51Total/Debt Equity= .20
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More Ratios
Management EffectivenessReturn on Equity=10.53Return on Assets=4.84Return on Investments=6.27Financial Leverage-ROE>ROA-favorable
ProfitabilityGross Margin %=44.32Operating Margin %=11.62Profit Marin%=5.62Per share data earnings=0.59
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Compared to Industry
CompanyProfitabilityGross Margin%=44.32-Industry 46.83Operating Margin%=11.62-Industry 1.89Profit Margin%=5.62-Industry –0.68
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AT&T Corporation
Provides voice,data and video telecommunications services, including cellular telephone and internet services, to businesses, consumers and government agenciesProvides cable TV to 11 million customers
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Background Information
Sector:ServicesIndustry: Communications ServicesEmployees: 147,800Market Cap(Mil)$: 75,304.66
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Key Ratios
Dividend InformationYield%=4.39Annual Dividend%=0.88Payout Ratio%=49.00
Financial InformationQuick Ratio=0.23Current Ratio=0.30Total Debt/Equity=0.56Sales$19.50
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More Key Ratios
Management EffectivenessReturn on Equity= 6.55Return on Assets= 3.87Return on Investment= 4.69Financial leverage-ROE>ROA-Favorable
Profitability Gross Margin%=53.43Operating Margin%=16.94Profit Margin%=11.85Per Share Data Earnings=$1.77
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Compare with Industry
ProfitabilityGross Margin%=44.32, Industry 46.83Operating Margin% =16.94, Industry1.89Profit Margin%=11.85, Industry –0.68
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Nokia Corporation
A supplier of telecommunications systems and equipmentCore businesses include the development, manufacture, and delivery of operator-driven infrastructure solutions and end-user-driven mobile phones
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Background Information
Sector: TechnologyIndustry: Communications EquipmentMarket Cap(Mil)$: 235,502.07Employees: 60,166
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Key Ratios
Dividend InformationYield%=1.52Annual Dividend%= 0.77Payout Ratio%= 0.00
Financial StrengthQuick Ratio=1.20Current Ratio=1.51Total Debt/Equity=0.13Per share data earnings$=0.66
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More Key Ratios
Management EffectivenessReturn on Equity=48.21Return on Assets= 24.68Return on Investment=46.18Financial leverage-ROE>ROA-favorable
ProfitabilityGross Profit%=38.50Operating Margin%=20.01Profit Margin%=13.42
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Compared to Industry
ProfitabilityGross margin%=38.50, Industry=46.83Operating Margin%=20.01, Industry=1.89Profit Margin%=13.42, Industry=-.68
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Comparison Between Companies
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Financial Strength/Management Effectiveness Comparison A:\ratios companies.xlsFirm Quick
RatioCurrent Ratio
Return on Equity%
Return on Assets%
Return on Investment%
CIEN 2.81 4.69 12.72 10.06 11.93
LU 1.32 2.51 10.53 4.84 6.27
T 0.23 0.30 6.55 3.87 4.69
NOK 1.20 1.51 48.21 24.21 46.18
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Profitability
AT&T seems to have the highest gross margin%Nokia seems to have the highest profit margin- return on sales
http://www.marketguide.com/
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ProfitMargin%
CIENLUTNOK
GrossMargin%
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Ending Comparisons
Long term Debt/Equity0.00=CIENA-0.56 most AT&T=.56Earnings per share$=.66 for Nokia, CIENA=.27, AT&T=1.77, Lucent=.59Companies are competitors and reflect weaknesses and strengthsOverall, Nokia is doing the best
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Sources
http://www.marketguide.com/