Analysis of Citizens Communication Co.

The tele communions attention is over blow years old, besides it is undergoing a radical transformation. Newly underdeveloped technology has replaced over 40% of long-distance telephone exercise and over 33% of topical anesthetic telephone use. more than than 180 million Americans fork over radio receiver phones and close to 20% of those use their unsettled phones as their chief(prenominal) communications device. give tongue to telephone communication was erstwhile the primeval service of the manufacture, unless in recent years, it has shifted from elongate to digital technology. When possible, communications gestate been moved to wireless platforms. Also, broadband serve are changing the way people communicate, accelerating the swan that reading can be transferred. These changes in technology continue to find the telecommunications intentness of the future. Citizens communication theory Company (referred to as Citizens) provides communication serve to both homespun areas and small to medium-sized cities as an officeholder local anaesthetic exchange work party cut (ILEC). As of declivity 31 2004, Citizens operated ILECs in 23 states. Citizens also offers competitive local exchange carrier (CLEC) serve to business customers and other communications carriers in the westerly unify States. Industry ComparisonProfitabilityCitizens? net cash in ones chipss bound, increased from 2002 to 2004, but it is belt up well below the 2004 attention average of .105 ( register A-1 and designate D-2).

Citizens? net profit margin is much lower than the fabrication?s, suggesting that Citizens is earning less profits on every dollar of gross sales than other companies in the industry. This indicates that Citizens is non effective in converting tax revenue income into actual profit. The average return on assets in the telecommunications industry is 5.9% (Exhibit D-2). This figure is significantly higher(prenominal) than Citizens? 2004 return on assets. Citizens? oversight must find a way to use the tender club?s assets more efficiently in set to make do in their industry. There are cardinal stock marketplace ratios that are useful to look at. The... If you fate to get a large essay, order it on our website: Ordercustompaper.com

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