Thread regarding Verizon Communications Inc. layoffs

Post ID: @dhm+1n2iRz9h & Post ID: @jhm+1n2iRz9h

Layman's eyesight. Have you recently noticed quoted VZ share price? Verify the put/call ratio?? Verify the short sale positions?

Again some of the downvotes and comments explain what is the problem at VZ. It seems that some employees really do not know about basic finance and generic telecom capital structures.

Debt is cheaper than equity capital and most capital-intensive companies, like Verizon, have lots of debt.

How much debt a company carries really looks at a couple of numbers to tell if you have too much or too little. One is the amount of debt to EBITDA of Cash Flow. Verizon was trying to target 1.2X

Another important metric is the "Optimal Weighted Average Cost of Capital". How much debt vs equity capital results in the lowest weighted average cost of capital?

Companies whose Return on Invested Capital exceeds their weighted average cost of capital tend of rise. The problem at Verizon is not real debt so much as lack of sales and subscribers and wasteful investment management.

Post ID: @otd+1n2iRz9h

Disagree. The same to when there is a stock split whatever the split ratio or for that matter a reverse stock split. Moreover, the actual share price is reflective to the enterprise value and not just the market capitalization.

Share price means nothing without looking at the number of outstanding shares.

The corporate dividend, in %, is approx. the same for both T & VZ. T attracts more net new wireless customers than VZ. T share price is approx. 1/2 of that of the VZ share price. Why would any long-term investor have additional principal (VZ share price being two-fold higher than T) be invested with VZ?

AT&T doesn't have 40 billion in debt, they have about 130 billion in debt, which is less but investors look at the debt to equity ratio. T has a debt to equity ratio of only 1.14 which is rather average.
https://www.macrotrends.net/stocks/charts/T/at-t/debt-equity-ratio

Verizon's Debt to equity ratio is 1.7; higher equity to debt than T. This makes V a better option for long term investors.

https://finance.yahoo.com/news/verizon-communications-inc-nyse-vz-110055589.html

The difference between V and it's competition is they return most profits back to the investors as dividends so it shows lower eoy profit because it has returned it back quarterly.

This amount of long term debt may seem like a lot to the layman, but to investors in the grand scheme of these it is about average and fine in relation to overall equity.

VZ will never be able to pay the $150+ billion of debt. Everything being equal, never!!!!

Believe it or not , AT&T currently earns more revenue per year. AT&T also currently has less total debt at about 40 billion less than Verizon

Who has more debt at this point. Verizon or AT&T

"So many articles out there about the fact they increased their long term debt from 89 billion to 164 billion to help line the pockets of the holders"

This is why the stock is down. More ignorant commies working in the company. The increase in debt it to pay for 5G that no one will buy.

Remand to know what was done with this borrowed money by the corporate executives.

The question is what was done with this borrowed money? Was this money used to buy back VZ stock purchased at higher per share price ($45+ per share) and not the stock purchased is worthless. The VZ stock price is now, if holding, at $35/share.

Corporate Receivership. White House appointee to be the next CEO. Favouring the craft unions.

OP: identify the source??

Today is June 2023 after two months. How much more has been reduced and not increased?

Given!!! Enormous debt, if the dollar amounts are accurate but (as of April 2023) should have been slightly reduced. There is a fear of having to go the bankruptcy route. Example, most recent in corporate history, General Motors + bailout, due to the United Auto Workers of North America.