Analysis of Citizens Communication Co.

The tele conversations attention is over 100 years old, besides it is undergoing a radical transformation. Newly developing technology has replaced over 40% of long-distance telephone use and over 33% of topical anesthetic telephone use. More than 180 million Americans become radio receiver phones and roughly 20% of those use their unstable phones as their chief(prenominal) communications device. Voice telephone communication was at a time the primeval service of the manufacture, but in recent years, it has shifted from one-dimensional to digital technology. When possible, communications have been moved to wireless platforms. Also, broadband serve ar changing the way people communicate, accelerating the identify that reading can be transferred. These changes in technology stay fresh to find the telecommunications intentness of the future. Citizens Communications Company (referred to as Citizens) provides communication serve to both rural areas and small to medium-s ized cities as an officeholder topical anesthetic exchange crew cut (ILEC). As of declination 31 2004, Citizens operated ILECs in 23 states. Citizens also offers competitive local exchange carrier (CLEC) services to business customers and other communications carriers in the westerly United States. Industry ComparisonProfitabilityCitizens? net value valuation reserve, increased from 2002 to 2004, but it is still well below the 2004 industry average of .105 ( register A-1 and Exhibit D-2). Citizens? net profit margin is much lower than the industry?s, suggesting that Citizens is earning less profits on every dollar of sales than other companies in the industry. This indicates that Citizens is not effective in converting tax income into actual profit. The average apply on assets in the telecommunications industry is 5.9% (Exhibit D-2). This figure is significantly high than Citizens? 2004 return on assets. Citizens? oversight must find a way to use the social club?s asse ts much efficiently in order to make do in! their industry. There are two stock marketplace ratios that are useful to look at. The... If you want to get a well(p) essay, order it on our website: BestEssayCheap.com

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