Sprint Nextel Corporation Company Profile and SWOT Analysis Sprint Nextel by ICDResearch

VIEWS: 51 PAGES: 30

More Info
									Sprint Nextel Corporation

_________________________________________________________________________________



Sprint Nextel Corporation                                                 Financial Snapshot

                                                                          Operating Performance
Fast Facts
                                   6200 Sprint Parkway,, Overland Park,   The company reported revenues of US$32,563.00
Headquarters Address
                                   66251                                  million during 2010, with a CAGR of -5.60% during
                                                                          2006–2010. Its revenue grew at an annual rate of
Telephone                          + 1 703 4334000
                                                                          0.94% over the previous fiscal year. In 2010, the
                                                                          company recorded an operating margin of -1.83%, as
Fax                                N/A                                    against -4.33% in 2009.

Website                            www.sprint.com
                                                                          Revenue and Margins
Ticker Symbol, Stock Exchange      S, New York Stock Exchange

Number of Employees                40,000

Fiscal Year End                    December

Revenue (in US$ million)           32,563.00




SWOT Analysis

Strengths                          Weaknesses                             Return on Equity

Control Over SG&A Expenditures     Substantial debts                      The company recorded a return on equity (ROE) of -
                                                                          23.82% for 2010, as compared to its peers, Verizon
                                                                          Communications Inc. (Ticker: FLIR), Leap Wireless
Strategic Alliances                                                       International, Inc. (Ticker: LEAP) and Level 3
                                                                          Communications, Inc. (Ticker: LVLT), which recorded
Strong Portfolio of Brands                                                ROEs of 6.61%, -95.68% and -125.87% respectively.
                                                                          The company reported an operating margin of -1.83%
                                                                          in 2010.
Opportunities                      Threats

Demand for VoIP Services           Industry Consolidation                 Return on Equity


Extended agreements                Pricing Pressures

Increasing Demand for 3G
Technologies

Innovations

Positive Outlook for Broadband
Services




                                                                          Liquidity Position

                                                                          The company reported a current ratio of 1.25 in 2010,
                                                                          as compared to its peers, Verizon Communications
                                                                          Inc., Leap Wireless International, Inc. and Level 3
                                                                          Communications, Inc., which recorded current ratios
                                                                          of 0.73, 1.15 and 1.02 respectively. As of December
                                                                          2010, the company recorded cash and short-term
                                                                          investments of worth US$5,473.00 million, against
                                                                          US$1,656.00 million current debt. The company
                                                                          reported a debt to equity ratio of 1.39 in 2010 as
                                                                          compared to its peers, Verizon Communications Inc.,
                                                                          Leap Wireless International, Inc. and Level 3
                                                                          Communications, Inc., which recorded debt to equity
                                                                          ratios of 1.37, 3.12 and -41.07 respectively.




___________________________________________________________________________________________

Sprint Nextel Corporation - SWOT Profile                                                                         Page 1
Sprint Nextel Corporation

_________________________________________________________________________________


TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
    1.4       Key Financial Performance Indicators ...................................................................................................................7
      1.4.1       Revenue and Operating Profit ...........................................................................................................................7
      1.4.2       Asset, Liabilities and Capex ...............................................................................................................................8
      1.4.3       Net Debt vs. Gearing Ratio ................................................................................................................................9
      1.4.4       Operational Efficiency ......................................................................................................................................10
      1.4.5       Solvency ..........................................................................................................................................................11
    1.5       Competitive Benchmarking ..................................................................................................................................12
      1.5.1       Efficiency ..........................................................................................................................................................13
      1.5.2       Capital Expenditure ..........................................................................................................................................14
      1.5.3       Turnover – Inventory and Asset .......................................................................................................................15
      1.5.4       Liquidity ............................................................................................................................................................16
2
								
To top