Business Analysis of Verizon

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Verizon

Business Overview

Verizon Communications Inc., through its subsidiaries, provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. Its Wireless segment offers wireless voice and data services; Internet access on various smart and basic phones, notebook computers, and tablets; and multimedia access, business-focused, location-based, global data, home phone handsets, and high-speed Internet services, as well as network access and value added services to support wireless connections for the Internet of Things (IoT). This segment also provides IoT services that support devices used in fleet management and telematics, energy, agricultural technology, and smart community markets; and wireless devices, such as smartphones and basic phones, tablets, and other Internet access devices. As of December 31, 2016, it had 114.2 million retail connections. The company's Wireline segment offers high-speed Internet, Fios Internet, and Fios video services; voice services, such as local exchange, regional and long distance calling, and voice messaging services, as well as Voice over Internet protocol services; network products and solutions comprising private Internet protocol (IP), public Internet, Ethernet, and optical networking services; IT infrastructure services that include collocation and managed hosting services; cloud services, which comprise computing, storage, backup, recovery, and application platforms; and business communications services. This segment also provides data security, voice and data, cloud and IT, business communications, IoT, and mobility services; and data, voice, local dial tone, and broadband services primarily to local, long distance, wireless, and other carriers. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is headquartered in New York City, New York.

Verizon

Verizon


R&P Rank: 13
Sector: Telecommunications
Industry:Telecom Services
H.Q Location:New York
Website: www.verizon.com
Company Address:
1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Ph:212-395-1000

Business Analysis of Verizon

The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Verizon compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Verizon to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Verizon with an interactive chart.

  1. Revenue Growth: Verizon reported a revenue growth of -4.3% year-on-year during 2016. Telecom Services Industry grew at 8.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Verizon spent 40.8% of its total revenues on COGS. Telecom Services industry average (COGS share of revenue) in the same period was 37.8%
  3. R&D share of Revenues: Verizon R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Verizon spent 25.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Telecom Services industry average SG&A spending in the same period was 26.6%
  5. Inventory share of Revenues: As a percentage of revenue, Verizon spent 1.0% of its total revenues on Inventories. Telecom Services industry average Inventory spending in the same period was 0.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Verizon invested 15.6% of its total revenues on Accounts Payable (A/P) Telecom Services industry average Accounts Payable investment in the same period was 15.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Verizon invested 13.9% of its total revenues on Accounts Receivable (A/R). Telecom Services industry average Accounts Receivable investment in the same period was 11.4%
  8. PP&E share of Revenues: As a percentage of revenue, Verizon invested 67.3% of its total revenues on Property, Plants, and Equipments (PP&E). Telecom Services industry average PPE investment in the same period was 79.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Verizon invested 97.5% of its total revenues on Intangibles. Telecom Services industry average Intangibles investment in the same period was 116.1%
  10. Net Margins: Verizon Net Margins in the year 2016 were 10.4%. Telecom Services industry average Net Margins in the same period were 6.9%

Sector and Industry Association of Verizon

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Verizon is associated with Telecommunications Sector and Telecom Services Industry.

Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:

  • Telecom Services industry includes providers of fixed-line and mobile telephone services.
  • Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.

Industry Ranking of Verizon

With $126 billion revenues, Verizon ranked number 2 of all the companies in the US Telecom Services industry. There were a total of 36 public companies in the US Telecom Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Telecom Services industry by revenues during 2016 were:

  1. AT&T ($163.8 billion)
  2. Verizon ($126 billion)
  3. T-Mobile US ($37.2 billion)
  4. Sprint ($32.2 billion)
  5. Charter Communications ($29 billion)
  6. Liberty Global ($20 billion)
  7. CenturyLink ($17.5 billion)
  8. Dish Network ($15.1 billion)
  9. Frontier Communications ($8.9 billion)
  10. Level 3 Communications ($8.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Verizonand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of verizon

AT&T (T) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AT&T Inc. with $164 billion revenues in the year 2016 was the number 1 Telecom Services company. Read this report to know the top competitors of AT&T and identify growth and cost optimization opportunities of AT&T

T-Mobile US (TMUS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

T-Mobile US, Inc. with $37 billion revenues in the year 2016 was the number 3 Telecom Services company. Read this report to know the top competitors of T-Mobile US and identify growth and cost optimization opportunities of T-Mobile US

Sprint (S) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Sprint Corp with $32 billion revenues in the year 2016 was the number 4 Telecom Services company. Read this report to know the top competitors of Sprint and identify growth and cost optimization opportunities of Sprint

Charter Communications (CHTR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Charter Communications, Inc. with $29 billion revenues in the year 2016 was the number 5 Telecom Services company. Read this report to know the top competitors of Charter Communications and identify growth and cost optimization opportunities of Charter Communications

Liberty Global (LBTYA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Liberty Global Plc with $20 billion revenues in the year 2016 was the number 6 Telecom Services company. Read this report to know the top competitors of Liberty Global and identify growth and cost optimization opportunities of Liberty Global

CenturyLink (CTL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CenturyLink, Inc with $17 billion revenues in the year 2016 was the number 7 Telecom Services company. Read this report to know the top competitors of CenturyLink and identify growth and cost optimization opportunities of CenturyLink

Revenues Analysis

Verizon (VZ) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Verizon Communications Inc (VZ) from 2012 to 2016. Verizon generated a total of $126 billion revenues during 2016. Verizon reported a revenue growth of -4.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Verizon (VZ) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Verizon Communications Inc (VZ) from 2002 to 2016. Verizon generated a total of $126 billion revenues during 2016. Verizon reported a revenue growth of -4.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Verizon (VZ) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Verizon Communications Inc (VZ) revenue growth with Telecom Services industry growth during the last five years from 2012 to 2016. Verizon reported a revenue growth of -4.3% year-over-year during 2016. The Telecom Services industry growth was 8.6% year-over-year during 2016. Verizon growth was slower than the industry during 2016.

Profit Analysis

Verizon (VZ) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Verizon Communications Inc (VZ) from 2012 to 2016. Verizon reported a total net income of $13.1 billion during 2016. Verizon generated a total of $126 billion revenues during 2016. Verizon net profit margin was 10.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Verizon (VZ) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of Verizon Communications Inc (VZ) from 2002 to 2016. Verizon reported a total