Financial Analysis of the Communications Industry

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Jan 16, 2013, 06:19 ET

NEW YORK, Jan. 16, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Financial Analysis of the Communications Industry

http://www.reportlinker.com/p01083079/Financial-Analysis-of-the-Communications-Industry.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Wireless_Technology

The study analyses the financial status of the markets in the communications industry during the period FY 2007 to FY 2013. The markets covered include alternative carriers, integrated telecommunication services, communications equipment and wireless telecommunication services. The profitability ratios, activity ratios, liquidity ratios and solvency ratios for each of the above markets have been analysed and ratios such as gross margin, net income margin, return on assets, asset turnover, current ratio, cash ratio and cashflows to debt ratios have been analysed and their trends in each of the market have been presented.

Key Trends

Profitability Ratios

There has been a marginal increase in the Gross margin in this market from 2008 to 2012 accompanied with a similar growth in the net income margin as well due to a growth in sales.

Activity Ratios

The activity ratios have improved for the market with the total asset turnover and fixed asset turnover remaining stable for most of the study period for the Alternative carriers market. Additionally, the increase in the accounts receivable turnover is a positive sign implying lower accrual based sales.

Liquidity Ratios

The liquidity position for this market has followed a cyclical pattern during the course of the study period due to changes in liquid cash holdings. This has impacted the quick ratio and cash ratio. Additionally, the cash conversion cycle has declined for this market.

Solvency Ratios

The solvency position for the alternative carriers market has improved over the course of the study period. The market has reduced its leverage and consequently increased the interest coverage ratios.

TABLE OF CONTENTS

Executive Summary 3

Definition of Key Terms 6

Research Objective and Scope 8

Research Methodology 11

Alternative Carriers 14

Communications Equipment 20

Integrated Telecommunication Services 26

Wireless Telecommunication Services 32

Conclusion 38

The Frost & Sullivan Story 41

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