Financial Management

This document provides an analysis of the wireless industry and a company overview of T-Mobile. It includes information on the industry's contribution to the economy, job creation, and the company's services and products. The document also includes a comparative and common size analysis of the company's financial statements.

Financial Management
1

Table of Contents
Section I. Industry and Company Overview....................................................................................3
Section II. Comparative and Common Size Analysis...................................................................10
Section III. Ratio Analysis.............................................................................................................22
Section IV. Valuation....................................................................................................................45
Conclusion.....................................................................................................................................49
References......................................................................................................................................50
Appendices....................................................................................................................................51
2

Section I. Industry and Company Overview
Industry Overview
The wireless industry of the U.S. contributes $475 billion annually to America’s economy and
supports 4.7 million jobs in the country. Based on GDP, the wireless industry of the U.S. is
larger than 87% of countries in the world, making it the 24th largest economy in the world. In the
U.S. the wireless industry also supports 4.7 million jobs and it is beneficial for the country
growth and development.
31%
44%
25%
GDP Contribution
Direct Activity
Indirect Activity
Induced Activity
Figure: $475 Billion in wireless industry GDP contribution
Direct Activity $147B (31%): It includes sales of products and services, through carriers or
telecom resellers.
3

Indirect Activity $207B (44%): Contribution of the economy from adjacent industries to supply
the wireless industry, such as the production of semiconductor content for smartphones
Induced Activity $121B (25%): Household spending on goods are increased such as restaurant
due to income earned from the wireless industry or suppliers of the industry.
Figure: Total Employment Multiplier Effect
The wireless industry provides new job opportunities in the country which increases the
economy of the country. This industry is far ahead of other sectors, such as full- service
restaurant and hardware manufacturing. With over $1 trillion in economic output generated by
the wireless industry in 2016 which shows that this industry impacts positively on the company
income and national income. The below figure shows the impact of the wireless industry in each
state of the U.S. and it’s clear that the industry contributes significantly to state economies.
4

Figure: Creating Jobs and Contributing to the Economy in Every State
This industry provides opportunity and creates jobs in every state of the U.S. through which
every state contributes its income to the country income. California contributes 15%, i.e. $73
Billion; Florida contributes $25 Billion in U.S. GDP. In South Dakota, the wireless industry
output is $1.2 Billion which is beneficial for the state economic growth.
5

Figure: The three main drivers for Direct Wireless Contribution
The direct contribution by the wireless industry to the U.S. economy is $147 Billion. In the U.S.
these main drivers are the sheer number of active wireless devices, which is recently above 396
million, equivalent to 1.2 mobile device subscription per person. Data traffic more than tripled in
the U.S. in the last two years to reach 13.7 trillion MB.
6

Figure: Fueling Economic Activity in Other Key Industries
The wireless industry trends impact positively on T- Mobile because the growth of this sector is
never come down and it provides new opportunity to the company to establish its new business
operations in the other state of U.S. But T- Mobile business can face the tough competition from
other companies who are working in the same industry as AT&T Inc., Verizon Wireless, Sprint
Corporation, etc. This industry provides new prospects to the company in the future which
influence their performance and also enhance their profits or revenue.
The wireless industry makes a substantial contribution to the U.S. economy and also provides a
new opportunity to the company who is working in this industry. The continued growth and
improvement of wireless, combined with the advent of 5G, among other factors, suggests that
this industry will continue to be a driving force of the economy of the U.S. and the many future
innovations backbone.
7

Company Overview
T- Mobile is a wireless network operator which operates its business operations in the United
States. In 2019, T- Mobile is the third largest wireless carrier in the United States with 81.3
million customers in the first quarter.
Services provided by T- Mobile in the United States are:
 Wireless Voice
 Data Services
The company’s advanced nationwide 4G LTE network delivers outstanding wireless experiences
for customers who are unwilling to compromise on value and quality. Total service revenues in
1Q19 are $8.3 Billion and 99% of American now covered with a 4G LTE network that is the
biggest achievement for the company. T- Mobile Inc. also provides services through its
subsidiaries and operates its flagship brands, T- Mobile, and Metro by T-Mobile.
Industry Leading Network Performance
 Aggressive deployment of 600 MHz using 5G ready equipment nearly 3500 cities and
towns
 The fastest combined average of upload and download speeds for 21 quarters
 The first nationwide 5G network available next year.
Major products of the company
 T- Mobile ONE
 Simple Choice
8

 GoSmart Mobile
 TVision Home
Current event of the company
The company makes strategies and invents innovative ideas to capture the market with the help
of a 5G network. 5G will spur $275 Billion in new investment, creating 3 Million new jobs and
adding $500 Billion to the economy by 2024.
Figure: T-Mobile 5G Network in 2024 which covers major parts of U.S.
The wireless communication network has created massive changes in the U.S. economy. In
2018, mobile technologies powered by 4G accounted for 4.6% of global GDP and $3.9 Trillion
in economic value which is beneficial for this industry and also for the nation. The company
makes future plans for 5G network to cover the major states of the U.S. and also beat the
competitors in the market of tough competition. The company also investing $40 Billion to
9

deliver the first wireless network facilities to nationwide in the form of 5G network- from big
cities to rural America.
Section II. Comparative and Common Size Analysis
1. Calculate and present the following analysis for the past 5 years:
a. Trend analysis
It is a statistical technique which is used to determine future movements of given variables by
analyzing past trends. Trend analysis determines the direction upwards or downwards and
involves the computation of the percentage relationship that each item bears to the same item in
the base year. In other words, financial statements may be analyzed by computing trends of
series of information (Williams and Dobelman 109-169).
Trend Percentage = Present year value/ Base year value* 100
Balance Sheet
Particulars Years
Assets 2014 2015 2016 2017 2018
Cash and cash equivalent 5315.00 4582.00 5500.00 1219.00 1203.00
Trend % 100 86.2088
4
103.480
7
22.9350
9
22.6340
5
Short- Term investment - 2998.00 - - -
Trend % 100 Nil Nil Nil Nil
Equipment installment plan receivable,
net 3062.00 2378.00 1930.00 2290.00 2538.00
Trend % 100 77.6616
6 63.0307 74.7877
2 82.887
Accounts Receivable 1865.00 1788.00 1896.00 1915.00 1769.00
Trend % 100 95.8713
1
101.662
2 102.681 94.8525
5
Accounts Receivable from affiliates 76.00 36.00 40.00 22.00 11.00
Trend % 100 47.3684 52.6315 28.9473 14.4736
10

2 8 7 8
Inventories 1,085 1,295 1,111 1,566 1,084
Trend % 100 119.354
8
102.396
3
144.331
8
99.9078
3
Deferred tax assets, net/ Asset purchase
deposit 988 - 2,203 - -
Trend % 100 Nil Nil Nil Nil
Other Current Assets 1,593 1,813 1,537 1,903 1,676
Trend % 100 114 96 119 105
Total current assets 13,984 14,890 14,217 8,915 8,281
Trend % 100 106 102 64 59
Property and Equipment, net 16,245 20,000 20,943 22,196 23,359
Trend % 100 123 129 137 144
Goodwill 1,683 1,683 1,683 1,683 1,901
Trend % 100 100 100 100 113
Spectrum Licenses 21,955 23,955 27,014 35,366 35,559
Trend % 100 109 123 161 162
Other intangible assets, net 870 594 376 217 198
Trend % 100 68 43 25 23
Equipment installment plan receivables
due after 1 year, net 1628.00 847.00 984.00 1274.00 1547.00
Trend % 100 52 60 78 95
Other Assets 288.00 467.00 674.00 912.00 1623.00
Trend % 100 162 234 317 564
Total Assets 56,653 62,436 65,891 70,563 72,468
Trend % 100 110 116 125 128
Liabilities and Equity
Accounts payable & accrued liabilities 7364.00 8084.00 7152.00 8528.00 7741.00
Trend % 100 109.777
3
97.1211
3
115.806
6
105.119
5
Current Liabilities to affiliates 231.00 135.00 125.00 182.00 200.00
Trend % 100 58.4415
6
54.1125
5
78.7878
8
86.5800
9
Short- term debts 87.00 182.00 354.00 1612.00 841.00
Trend % 100 209.195
4
406.896
6
1852.87
4
966.666
7
Deferred revenue 459.00 717.00 986.00 779.00 698.00
Trend % 100 156.209
2
214.814
8
169.716
8
152.069
7
Other current liabilities 635.00 410.00 405.00 414.00 787.00
Trend % 100 64.5669 63.7795 65.1968 123.937
11

3 3 5
Total current liabilities 8776.00 9528.00 9022.00
11515.0
0
10267.0
0
Trend % 100 108.568
8
102.803
1
131.210
1
116.989
5
Long-term debts
16273.0
0
20484.0
0
21832.0
0
12121.0
0
12124.0
0
Trend % 100 125.877
2
134.160
9
74.4853
4
74.5037
8
Long-term to affiliates 5600.00 5600.00 5600.00
14586.0
0
14582.0
0
Trend % 100 100 100 260.464
3
260.392
9
Tower obligations - - - - 2557.00
Trend % 100 Nil Nil Nil Nil
Long-term financial obligation 2521.00 2658.00 2621.00 2590.00 -
Trend % 100 105.434
4
103.966
7 102.737 Nil
Deferred tax liabilities 4873.00 4061.00 4938.00 3537.00 4472.00
Trend % 100 83.3367
5
101.333
9
72.5836
2
91.7709
8
Deferred rent expense 2331.00 2481.00 2616.00 2720.00 2781.00
Trend % 100 106.435
112.226
5
116.688
1 119.305
Other long- term liabilities 616.00 1067.00 1026.00 935.00 967.00
Trend % 100 173.214
3
166.558
4
151.785
7
156.980
5
Total long- term liabilities
32214.0
0
36351.0
0
38633.0
0
36489.0
0
37483.0
0
Trend % 100
112.842
2
119.926
1
113.270
6
116.356
2
Additional paid in capital
38503.0
0
38666.0
0
38846.0
0
38629.0
0
38010.0
0
Trend % 100
100.423
3
100.890
8
100.327
2
98.7195
8
Accumulated deficit
-
22841.0
0
-
22108.0
0
-
20610.0
0
-
16074.0
0
-
14292.0
0
Trend % 100
96.7908
6
90.2324
8
70.3734
5
62.5716
9
Total shareholders' equity
15663.0
0
16557.0
0
18236.0
0
22559.0
0
24718.0
0
Trend % 100
105.707
7
116.427
2
144.027
3
157.811
4
Total liabilities and shareholders' 56653.0 62436.0 65891.0 70563.0 72468.0
12

equity 0 0 0 0 0
Trend % 100
110.207
8
116.306
3 124.553
127.915
6
13

b. Percent Change Analysis
The percentage change analysis examines the financial statement changes over two or more
years.
Balance Sheet
Assets 2014 2015 2016 2017 2018
Cash and cash equivalent 5315.00 4582.00 5500.00 1219.00 1203.00
Change Nil -733.00 918.00
-
4281.00 -16.00
% Change Nil -13.79 20.03 -77.84 -1.31
Short- Term investment - 2998.00 - - -
Change Nil Nil Nil Nil Nil
% Change Nil Nil Nil Nil Nil
Equipment installment plan receivable,
net 3062.00 2378.00 1930.00 2290.00 2538.00
Change Nil -684.00 -448.00 360.00 248.00
% Change Nil -22.34 -18.84 18.65 10.83
Accounts Receivable 1865.00 1788.00 1896.00 1915.00 1769.00
Change Nil -77.00 108.00 19.00 -146.00
% Change Nil -4.13 6.04 1.00 -7.62
Accounts Receivable from affiliates 76.00 36.00 40.00 22.00 11.00
Change Nil -40.00 4.00 -18.00 -11.00
% Change Nil -52.63 11.11 -45.00 -50.00
Inventories 1,085 1,295 1,111 1,566 1,084
Change Nil 210 -184 455 -482
% Change Nil 19.35 -14.21 40.95 -30.78
Deferred tax assets, net/ Asset
purchase deposit 988 - 2,203 - -
Change Nil Nil Nil Nil Nil
% Change Nil Nil Nil Nil Nil
Other Current Assets 1,593 1,813 1,537 1,903 1,676
Change Nil 220.00 -276.00 366.00 -227.00
% Change Nil 13.81 -15.22 23.81 -11.93
Total current assets 13,984 14,890 14,217 8,915 8,281
Change Nil 906 -673
-
5302.00 -634
% Change Nil 6.48 -4.52 -37.29 -7.11
14

Property and Equipment, net 16,245 20,000 20,943 22,196 23,359
Change Nil 3,755 943 1,253 1,163
% Change Nil 23 5 6 5
Goodwill 1,683 1,683 1,683 1,683 1,901
Change Nil 0 0 0 218
% Change Nil 0 0 0 13
Spectrum Licenses 21,955 23,955 27,014 35,366 35,559
Change Nil 2,000 3,059 8,352 193
% Change Nil 9 13 31 1
Other intangible assets, net 870 594 376 217 198
Change Nil -276 -218 -159 -19
% Change Nil -32 -37 -42 -9
Equipment installment plan receivables
due after 1 year, net 1628.00 847.00 984.00 1274.00 1547.00
Change Nil -781.00 137.00 290.00 273.00
% Change Nil -47.97 16.17 29.47 21.43
Other Assets 288.00 467.00 674.00 912.00 1623.00
Change Nil 179.00 207.00 238.00 711.00
% Change Nil 62.15 44.33 35.31 77.96
Total Assets 56,653 62,436 65,891 70,563 72,468
Change Nil 5783.00 3455.00 4672.00 1905.00
% Change Nil 10.21 5.53 7.09 2.70
Liabilities and Equity
Accounts payable & accrued liabilities 7364.00 8084.00 7152.00 8528.00 7741.00
Change Nil 720.00 -932.00 1376.00 -787.00
% Change Nil 9.78 -11.53 19.24 -9.23
Current Liabilities to affiliates 231.00 135.00 125.00 182.00 200.00
Change Nil -96.00 -10.00 57.00 18.00
% Change Nil -41.56 -7.41 45.60 9.89
Short- term debts 87.00 182.00 354.00 1612.00 841.00
Change Nil 95.00 172.00 1258.00 -771.00
% Change Nil 109.20 94.51 355.37 -47.83
Deferred revenue 459.00 717.00 986.00 779.00 698.00
Change Nil 258.00 269.00 -207.00 -81.00
% Change Nil 56.21 37.52 -20.99 -10.40
Other current liabilities 635.00 410.00 405.00 414.00 787.00
Change Nil -225.00 -5.00 9.00 373.00
% Change Nil -35.43 -1.22 2.22 90.10
Total current liabilities 8776.00 9528.00 9022.00
11515.0
0
10267.0
0
Change Nil 108.57 94.69 127.63 89.16
15

% Change Nil 1.24 0.99 1.41 0.77
Long-term debts
16273.0
0
20484.0
0
21832.0
0
12121.0
0
12124.0
0
Change Nil 8.00 10.00 4.00 4.00
% Change Nil 12.90 14.29 5.00 4.76
Long-term to affiliates 5600.00 5600.00 5600.00
14586.0
0
14582.0
0
Change Nil 0.00 0.00 0.00 0.00
% Change Nil 0.00 0.00 0.00 0.00
Tower obligations - - - - 2557.00
Change Nil 35.00 16.00 15.00 16.00
% Change Nil 77.78 20.00 15.63 14.41
Long-term financial obligation 2521.00 2658.00 2621.00 2590.00 -
Change Nil 35.00 16.00 15.00 16.00
% Change Nil 14.29 5.71 5.07 5.14
Deferred tax liabilities 4873.00 4061.00 4938.00 3537.00 4472.00
Change Nil 258.82 -23.00 -40.20 76.75
% Change Nil 42.15 -2.68 -4.73 9.48
Deferred rent expense 2331.00 2481.00 2616.00 2720.00 2781.00
Change Nil 150.00 135.00 104.00 61.00
% Change NIl 6.44 5.44 3.98 2.24
Other long- term liabilities 616.00 1067.00 1026.00 935.00 967.00
Change Nil 451.00 -41.00 -91.00 32.00
% Change Nil 73.21 -3.84 -8.87 3.42
Total long- term liabilities
32214.0
0
36351.0
0
38633.0
0
36489.0
0
37483.0
0
Change Nil 4137.00 2282.00
-
2144.00 994.00
% Change Nil 12.84 6.28 -5.55 2.72
Additional paid in capital
38503.0
0
38666.0
0
38846.0
0
38629.0
0
38010.0
0
Change Nil 163.00 180.00 -217.00 -619.00
% Change Nil 0.42 0.47 -0.56 -1.60
Accumulated deficit
-
22841.0
0
-
22108.0
0
-
20610.0
0
-
16074.0
0
-
14292.0
0
Change Nil 733.00 1498.00 4536.00 1782.00
% Change Nil -3.21 -6.78 -22.01 -11.09
Total shareholders' equity
15663.0
0
16557.0
0
18236.0
0
22559.0
0
24718.0
0
Change Nil 894.00 1679.00 4323.00 2159.00
% Change Nil 5.71 10.14 23.71 9.57
16

Total liabilities and shareholders'
equity
56653.0
0
62436.0
0
65891.0
0
70563.0
0
72468.0
0
Change Nil 5783.00 3455.00 4672.00 1905.00
% Change Nil 10.21 5.53 7.09 2.70
17

c. Common Size Analysis
The common size analysis is used for comparing companies which differ substantially in size as
it provides an insight into the structure of financial statements. With the help of common size
analysis, the company can compare its position with the related industry (Gupta 05-11).
Balance
Sheet
Assets
20
14
% of
Total
Assets
20
15
% of
Total
Assets
20
16
% of
Total
Assets
20
17
% of
Total
Assets
20
18
% of
Total
Assets
Cash
53
15 9.38
45
82
.0
0 7.34
55
00
.0
0 8.35
12
19
.0
0 1.73
12
03
.0
0 1.66
Short- Term
investment
Ni
l Nil
29
98
.0
0 4.80
Ni
l Nil
Ni
l Nil
Ni
l Nil
Equipment
installment
plan
receivable,
net
30
62
.0
0 5.40
23
78
.0
0 3.81
19
30
.0
0 2.93
22
90
.0
0 3.25
25
38
.0
0 3.50
Accounts
Receivable
18
65
.0
0 3.29
17
88
.0
0 2.86
18
96
.0
0 2.88
19
15
.0
0 2.71
17
69
.0
0 2.44
Accounts
Receivable
from
affiliates
76
.0
0 0.13
36
.0
0 0.06
40
.0
0 0.06
22
.0
0 0.03
11
.0
0 0.02
Inventories
1,
08
5 1.92
1,
29
5 2.07
1,
11
1 1.69
1,
56
6 2.22
1,
08
4 1.50
Deferred tax
assets, net/
Asset
purchase
deposit
98
8 1.74
Ni
l Nil
2,
20
3 3.34 0.00 0.00
18

Other
Current
Assets
1,
59
3 2.81
1,
81
3 2.90
1,
53
7 2.33
1,
90
3 2.70
1,
67
6 2.31
Total
current
assets
13
,9
84 24.68 0.00 0.00 0.00 0.00
Property and
Equipment,
net
16
,2
45 28.67
20
,0
00 32.03
20
,9
43 31.78
22
,1
96 31.46
23
,3
59 32.23
Goodwill
1,
68
3 2.97
1,
68
3 2.70
1,
68
3 2.55
1,
68
3 2.39
1,
90
1 2.62
Spectrum
Licenses
21
,9
55 38.75
23
,9
55 38.37
27
,0
14 41.00
35
,3
66 50.12
35
,5
59 49.07
Other
intangible
assets, net
87
0 1.54
59
4 0.95
37
6 0.57
21
7 0.31
19
8 0.27
Equipment
installment
plan
receivables
due after 1
year, net
16
28
.0
0 2.87
84
7.
00 1.36
98
4.
00 1.49
12
74
.0
0 1.81
15
47
.0
0 2.13
Other Assets
28
8.
00 0.51
46
7.
00 0.75
67
4.
00 1.02
91
2.
00 1.29
16
23
.0
0 2.24
Total Assets
56
65
3.
00 100.00
62
43
6.
00 100.00
65
89
1.
00 100.00
70
56
3.
00 100.00
72
46
8.
00 100.00
Liabilities
and Equity
% of
Total
Liabiliti
es &
Equity
% of
Total
Liabiliti
es &
Equity
% of
Total
Liabiliti
es &
Equity
% of
Total
Liabiliti
es &
Equity
% of
Total
Liabiliti
es &
Equity
Accounts
payable &
accrued
liabilities
73
64
.0
0 13.00
80
84
.0
0 12.95
71
52
.0
0 10.85
85
28
.0
0 12.09
77
41
.0
0 10.68
Current
Liabilities to
affiliates
23
1.
00 0.41
13
5.
00 0.22
12
5.
00 0.19
18
2.
00 0.26
20
0.
00 0.28
Short- term
debts
87
.0
0.15 18
2.
0.29 35
4.
0.54 16
12
2.28 84
1.
1.16
19

0 00 00
.0
0 00
Deferred
revenue
45
9.
00 0.81
71
7.
00 1.15
98
6.
00 1.50
77
9.
00 1.10
69
8.
00 0.96
Other
current
liabilities
63
5.
00 1.12
41
0.
00 0.66
40
5.
00 0.61
41
4.
00 0.59
78
7.
00 1.09
Total
current
liabilities
87
76
.0
0 15.49
95
28
.0
0 15.26
90
22
.0
0 13.69
11
51
5.
00 16.32
10
26
7.
00 14.17
Long-term
debts
16
27
3.
00 28.72
20
48
4.
00 32.81
21
83
2.
00 33.13
12
12
1.
00 17.18
12
12
4.
00 16.73
Long-term
to affiliates
56
00
.0
0 9.88
56
00
.0
0 8.97
56
00
.0
0 8.50
14
58
6.
00 20.67
14
58
2.
00 20.12
Tower
obligations
Ni
l Nil
Ni
l Nil
Ni
l Nil
Ni
l Nil
25
57
.0
0 3.53
Long-term
financial
obligation
25
21
.0
0 4.45
26
58
.0
0 4.26
26
21
.0
0 3.98
25
90
.0
0 3.67
Ni
l Nil
Deferred tax
liabilities
48
73
.0
0 8.60
40
61
.0
0 6.50
49
38
.0
0 7.49
35
37
.0
0 5.01
44
72
.0
0 6.17
Deferred
rent expense
23
31
.0
0 4.11
24
81
.0
0 3.97
26
16
.0
0 3.97
27
20
.0
0 3.85
27
81
.0
0 3.84
Other long-
term
liabilities
61
6.
00 1.09
10
67
.0
0 1.71
10
26
.0
0 1.56
93
5.
00 1.33
96
7.
00 1.33
Total long-
term
liabilities
32
21
4.
00 56.86
36
35
1.
00 58.22
38
63
3.
00 58.63
36
48
9.
00 51.71
37
48
3.
00 51.72
Additional
paid in
38
50
67.96 38
66
61.93 38
84
58.95 38
62
54.74 38
01
52.45
20

capital
3.
00
6.
00
6.
00
9.
00
0.
00
Accumulate
d deficit
-
22
84
1.
00 -40.32
-
22
10
8.
00 -35.41
-
20
61
0.
00 -31.28
-
16
07
4.
00 -22.78
-
14
29
2.
00 -19.72
Total
shareholder
s' equity
15
66
3.
00 27.65
16
55
7.
00 26.52
18
23
6.
00 27.68
22
55
9.
00 31.97
24
71
8.
00 34.11
Total
liabilities
and
shareholder
s' equity
56
65
3.
00 100.00
62
43
6.
00 100.00
65
89
1.
00 100.00
70
56
3.
00 100.00
72
46
8.
00 100.00
21

2. Discussion of the potential implications of the analyses calculated above
Trend Analysis: In trend analysis, the trend percentage has been increased from year to year
which shows that the company is stable and it is suitable for the investors for doing investment in
the company (Finkler, Smith, and Calabrese). Investors use this analysis tool in order to
determine the financial position of the business.
Percent Change Analysis: In percent change analysis is important for investors and managers to
see how a company is retracting or growing from year to year. While using this analysis the
company percentage has been decreasing from year to year. It shows how the items of balance
sheet change from year to year.
Common Size Analysis: The common size analysis allows and helps the investors to identify
drastic changes in a company’s financial statement from year to year. Any significant change in
the financial statements can reduce or increase in the investment from the investors. The above
calculation shows that the company is in a stable position which is suitable for the investment
(Sari, and Mehmet, 2015).
Section III. Ratio Analysis
1. Calculate and present the ratios for the past 5 years:
a. Operating Performance Ratios
i. Gross Profit Margin
22

GPM = Gross Profit/ Net Sales
Particula
rs
2014 2015 2016 2017 2018
Gross
Profit =
Net sales
- COGS
29,564-14,155
=15,409
32,053-
17,155=14,898
37,242-
20,692=16,550
40,604-
22,896=17,806
43,310-
24,956=18,354
Gross
Profit
Ratio
14155/29564*
100 = 48%`
17155/32053*
100 = 54%
20692/37242*
100 = 56%
22896/40604*
100 = 56%
24956/43310*
100 = 58%
ii. Operating Profit Margin (pretax)
OPM = Operating Profit/ Net Sales *100
Particula
rs
2014 2015 2016 2017 2018
Operatin
g Profit
1416 2065 3802 4888 5309
23

Net Sales 29564 32053 37242 40604 43310
Operatin
g Profit
Ratio
1416/29564*1
00 = 4.78%
2065/32053*1
00 = 6.44%
3802/37242*1
00 = 10.20%
4888/40604*1
00 = 12.03%
5309/43310*1
00 = 12.26%
iii. Pretax Profit Margin
Pretax Profit Margin = Pretax Profit/ Net Sales *100
Particula
rs
2014 2015 2016 2017 2018
Pretax
Profit
413 978 2327 3161 3917
Net Sales 29,564 32,053 37,242 40,604 43,310
Pretax
Profit
Ratio
413/29564*1
00 = 1.39%
978/32053*1
00 = 3.05%
2327/37242*1
00 = 6.25%
3161/40604*10
0= 7.78%
3917/43310*1
00 = 9.04%
iv. Net Profit Margin
24

NPM = Net Profit after tax/ Net Sales *100
Particula
rs
2014 2015 2016 2017 2018
Net
Profit
after tax
247 733 1460 4536 2888
Net Sales 29,564 32,053 37,242 40,604 43,310
Net
Profit
Ratio
247/29,564*1
00 = 0.84%
733/32,053*1
00 = 2.29%
1460/37,242*1
00 = 3.92%
4536/40,604*1
00 = 11.17%
2888/43,310*1
00 = 6.67%
b. Return on Investment Ratios
i. Return on Total Assets
RTA = EBIT/ Average Total Assets
Particul
ars
2014 2015 2016 2017 2018
EBIT 5,516 7,230 9,556 10,978 12,398
25

Average
Total
Assets
49,953+56,65
3/2 = 53,303
56,653+62,43
6/2 = 59,544
62,436+65,89
1/2 = 64,163
65,891+70,563/
2 = 68,227
70,563+72,468/
2 = 71,515
RTA 5,516/53,303*
100 = 10%
7,230/59,544*
100 = 12%
9,556/64,163*
100 = 14%
10,978/68,227*
100 = 16%
12,398/71,515*
100 = 17%
ii. Return on Common Equity
ROCE = Net Income/ Average Common Equity
Particula
rs
2014 2015 2016 2017 2018
Net
Income
247 733 1460 4536 2888
Average
Common
Equity
37,330+38,50
3/2 = 37,916
38,503+38,66
6/2 = 38,584
38,666+38,846
/2 = 38,756
38,846+38,629
/2 = 38,737
38,629+38,010
/2 = 38,319
Return
on
247/37,916*1 733/38,584*1 1460/38,756*1 4536/38,737*1 2888/38,319*1
26

Common
Equity
00
= 0.65%
00
= 1.90%
00
= 3.77%
00
= 11.71%
00
= 7.54%
c. Asset Management ratios
i. Cash Turnover Ratio
CTR = Annual Revenue/ Average Cash Balance
Particulars 2014 2015 2016 2017 2018
Annual
Revenue
29,564 32,053 37,242 40,604 43,310
Average
Cash
Balance
5,891+5,315/2
= 5603
5,315+4,582/2
= 4948
4,582+5,500/2
= 5041
5,500+1,219/2
= 3360
1,219+1,203/2
= 1211
Cash
Turnover
Ratio
29,564/5603 =
5.28:1
32,053/4948 =
6.48:1
37,242/5041 =
7.39:1
40,604/3360 =
12.08:1
43,310/1211 =
35.76:1
ii. Account Receivable Turnover Ratio
27

ARTR = Net Credit Sales/ Average Accounts Receivable
Particulars 2014 2015 2016 2017 2018
Net Credit
Sales
29,564 32,053 37,242 40,604 43,310
Average
Accounts
Receivable
2148+1865/2
= 2006
1865+1788/2
= 1827
1788+1896/2
= 1827
1896+1915/2
= 1905
1915+1769/2
= 1840
Account
Receivable
Turnover
Ratio
29,564/2006
= 14.74:1
32,053/1827
= 17.54:1
37,242/1827
= 20.38:1
40,604/1905
= 21.31:1
43,310/1840
= 23.54:1
iii. Inventory Turnover Ratio
ITR = Cost of Goods Sold/ Average Inventory
Particulars 2014 2015 2016 2017 2018
28

Cost of
Goods Sold
14,155 17,155 20,692 22,896 24,956
Average
Inventory
586+1085/2 =
835
1085+1295/2
= 1190
1295+1111/2
= 1203
1111+1566/2
= 1338
1566+1084/2
= 1325
Inventory
Turnover
Ratio
14155/835 =
16.95:1
17155/1190 =
14.42:1
20692/1203 =
17.20:1
22896/1338 =
17.11:1
24956/1325 =
18.83:1
iv. Working Capital Turnover Ratio
WCTR = Net Sales/ Working Capital
Particulars 2014 2015 2016 2017 2018
Net Sales 29,564 32,053 37,242 40,604 43,310
Working
Capital
(Current
Assets –
Current
13,984 –
8,776 = 5,208
14,890 –
9,528 = 5,362
14,217 –
9,022 = 5,195
8,915 –
11,515 = -
2600
8,281 –
10,267 = -
1986
29

Liabilities)
Working
Capital
Turnover
Ratio
29,564/5,208
= 5.68:1
32,053/5,362
= 5.98:1
37,242/5,195
= 7.17:1
40,604/-2600
= -15.62:1
42,310/-1986
= -21.30:1
v. Fixed Asset Turnover Ratio
FAT = Net Sales/ Average Fixed Assets
Particula
rs
2014 2015 2016 2017 2018
Net Sales 29,564 32,053 37,242 40,604 43,310
Average
Fixed
Assets
37,725+42,66
9/2 = 40,197
42,669+47,54
6/2 = 45,107
47,546+51,67
4/2 = 49,610
51,674+61,62
1/2 = 56,647
61,621+64,18
7/2 = 62,904
Fixed
Asset
Turnover
29,564/40,197
= 0.74:1
32,053/45,107
= 0.71:1
37,242/49,610
= 0.75:1
40,604/56,647
= 0.72:1
43,310/62,904
= 0.69:1
30

Ratio
vi. Total Asset Turnover Ratio
TATR = Net Sales/ Average Total Assets
Particula
rs
2014 2015 2016 2017 2018
Net Sales 29,564 32,053 37,242 40,604 43,310
Average
Total
Assets
49,953+56,65
3/2 = 53,303
56,653+62,43
6/2 = 59,544
62,436+65,89
1/2 = 64,163
65,891+70,56
3/2 = 68,227
70,563+72,46
8/2 = 71,515
Total
Asset
Turnover
ratio
29,564/53,303
= 0.55:1
32,053/59,544
= 0.54:1
37,242/64,163
= 0.58:1
40,604/68,227
= 0.60:1
43,310/71,515
= 0.61:1
d. Liquidity Ratios
i. Current Ratio
31

CR = Current Assets/ Current Liabilities
Particulars 2014 2015 2016 2017 2018
Current
Assets
13,984 14,890 14,217 8,915 8,281
Current
Liabilities
8,776 9,528 9,022 11,515 10,267
Current
Ratio
13,984/8,776
= 1.59:1
14,890/9,528
= 1.56:1
14,217/9,022
= 1.58:1
8,915/11,515
= 0.77:1
8,281/10,267
= 0.81:1
ii. Quick Ratio
QR = Quick Assets/ Current Liabilities
Particulars 2014 2015 2016 2017 2018
Quick Assets 13,984 –
1,085 =
12,899
14,890 –
1,295 =
13,595
14,217 –
1,111 =
13,106
8,915 – 1,566
= 7,349
8,281 – 1,084
= 7,197
Current 8,776 9,528 9,022 11,515 10,267
32

Liabilities
Quick Ratio 12,899/8,776
= 1.47:1
13,595/9,528
= 1.43:1
13,106/9,022
= 1.45:1
7,349/11,515
= 0.64:1
7,197/10,267
= 0.70:1
iii. Collection Period
CP = 365/ Receivables Turnover
Particulars 2014 2015 2016 2017 2018
Days 365 365 365 365 365
Receivables
Turnover
(Calculated
above)
14.74:1 17.54:1 20.38:1 21.31:1 23.54:1
Collection
Period
25 days 21 days 18 days 17 days 16 days
iv. Days to Sell Inventory
33

Particulars 2014 2015 2016 2017 2018
Days 365 365 365 365 365
Inventory
Turnover
16.95:1 14.42:1 17.20:1 17.11:1 18.83:1
Days to Sell
Inventory
22 days 25 days 21 days 21 days 19 days
e. Capital Structure and Solvency
i. Total Debt to Equity
Particulars 2014 2015 2016 2017 2018
Total Debt 32,214 36,351 38,633 36,489 37,483
Equity 15,663 16,557 18,236 22,559 24,718
Total Debt
to Equity
32,214/15,663
= 2.06:1
36,351/16,557
= 2.20:1
38,633/18,236
= 2.12:1
36,489/22,559
= 1.62:1
37,483/24,718
= 1.52:1
34

ii. Long- Term Debt to Equity
Particulars 2014 2015 2016 2017 2018
Long- Term
Debt
24,394 28,742 30,053 29,297 26,706
Equity 15,663 16,557 18,236 22,559 24,718
Long- Term
Debt to
Equity
1.56:1 1.74:1 1.65:1 1.30:1 1.08:1
iii. Times Interest Earned Ratio
TISR = Income before Interest and taxes or EBIT/ Interest Expense
Particulars 2014 2015 2016 2017 2018
Income
before
Interest and
taxes or
5,516 7,230 9,556 10,978 12,398
35

EBIT
Interest
Expense
1,351 1,496 1,730 1,671 1,357
Times
Interest
Earned Ratio
4.08:1 4.83:1 5.52:1 6.57:1 9.14:1
f. Market Value Ratios
i. Price-to-Earnings Ratio
P/E Ratio = Market Price per Share/ Earnings per Share
Particulars 2014 2015 2016 2017 2018
Market price
per share
(Assume)
0.20 0.75 1.20 6.00 5.40
Earnings per
share
0.31 0.83 1.71 5.39 3.40
36

P/E Ratio 0.65 0.90 0.70 1.11 1.59
ii. Earnings Yield
EY = Earnings per share/ Market price per share
Particulars 2014 2015 2016 2017 2018
Earnings per
share
0.31 0.83 1.71 5.39 3.40
Market price
per share
(Assume)
0.20 0.75 1.20 6.00 5.40
Earnings
Yield
1.55 1.11 1.43 0.89 0.63
iii. Dividend Yield
Dividend Yield = Cash Dividends per Share/ Market Value per Share
37

Particulars 2014 2015 2016 2017 2018
Cash
Dividends
per share
(Assume)
0.10 0.50 1.52 5.50 5.00
Market price
per share
(Assume)
0.20 0.75 1.20 6.00 5.40
Dividend
Yield
0.50 0.67 1.27 0.92 0.93
iv. Dividend Payout Ratio
DPR = Total Dividends/ Net Income
Particulars 2014 2015 2016 2017 2018
Total
Dividends
100 250 750 1500 1000
38

(Assume)
Net Income 247 733 1460 4536 2888
DPR 0.40 0.34 0.51 0.33 0.34
v. Price-to-Book Ratio
P/B Ratio = Market price per share/ Book Value per share
Particulars 2014 2015 2016 2017 2018
Market price
per share
(Assume)
0.20 0.75 1.20 6.00 5.40
Book value
per share
(Assume)
0.15 0.60 1.30 5.00 4.50
P/B Ratio 1.33 1.25 0.92 1.20 1.20
39

2. Observations
Ratios Observations
a. Operating Performance Ratios
i. Gross Profit Ratios In 2018, GPR is 58% and in a stable form
which denotes that from the previous years this
ratio goes up and down due to change in sales.
ii. Operating Profit Ratios In 2017 and 2018, this ratio is similar and the
previous year shows up and downtrend is due
to the change in net sales and operating profit
of the company.
iii. Pretax Profit Ratios In 2017 and 2018, this ratio is similar and
previous year shows declining in the ratio
which is due to tax which impacts on the
income of the company.
iv. Net Profit Ratio Again in 2017 and 2018 shows the same ratio
and there is downtrend in previous year ratios
which is due to change in net profit from year
to year.
40

b. Return on Investment ratios
i. Return on Total Assets Return on total assets is declining from 2014 to
2018 is due to the change in total assets.
ii. Return on Common Equity Return on Common Equity is increasing from
2014 to 2018 is due to a change in common
equity from year to year.
c. Asset Management Ratios
i. Cash Turnover Ratio The cash turnover ratio is declining from year
to year is due to the change in cash.
ii. Account Receivable Turnover Ratio The account receivable turnover ratio is
increasing from 2014 to 2018 is due to a
change in account receivable.
iii. Inventory Turnover Ratio In inventory turnover ratio is fluctuating from
2014 to 2018 is due to change in inventory
level in the company’s business operations
iv. Working Capital Turnover Ratio The working capital ratio is increasing from
2014 to 2018 is due to a change in the working
41

capital of the company.
v. Fixed Asset Turnover Ratio The fixed asset turnover ratio is the same in
2017 and 2018 but from 2014 to 2016 it is in
mixed form i.e. in upward and downward
movement. The fluctuation is due to a change
in fixed assets from year to year.
vi. Total Asset Turnover Ratio The total assets turnover ratio is also the same
in 2017 and 2018 and there are upward and
downward trends in 2014, 2015, 2016. This
change is due to fluctuation in the total assets
of the company.
d. Liquidity Ratio
i. Current Ratio
The current ratio is the same in all the year and
there is minor fluctuation in current assets and
current liabilities.
ii. Quick Ratio The quick ratio also shows the same scenario
and from 2014 to 2015 the ratio is the same but
it changes from 2006 to 2008.
iii. Collection Period The collection period is also decreasing from
2014 to 2018 which indicates that the company
collects money fast from the debtors.
iv. Days to Sell Inventory Days to sell inventory is increasing which
42

indicates that the inventory is sold in a slowly
process.
e. Capital Structure and Solvency
i. Total Debt to Equity Debt to equity is also increasing from 2014 to
2018 is due to a change in debt and also
change in equity from year to year.
ii. Long- Term Debt to Equity The long- term debt to equity shows equal
ratio from 2014 to 2018.
iii. Times Interest Earned Ratio This ratio is also increasing from 2014 to 2018
is due to a change in interest rate.
f. Market value ratio
i. Price-to-Earnings Ratio The P/E ratio is decreasing in 2018 is due to
the change in market price per share which
effects this ratio. In 2015 and 2016 the ratio is
in satisfactory level which satisfies the
investors of the company.
ii. Earnings Yield This ratio is in increasing and decreasing form
which is due to the change in earning price per
share.
iii. Dividend Payout Ratio The dividend payout ratio is in a satisfactory
form which provides satisfaction to the
43

investors while doing investment.
iv. Price-to-Book Ratio The price-to-book ratio is decreasing from year
to year is due to the change in book value and
market price per share.
3. The ratio analysis shows the company’s financial position from year to year which helps the
investors to make investment decisions. But sometimes this analysis does not provide a
satisfactory result after doing investment. The main limitation which is concerning with ratio
analysis is:
 It gives a number, not causation
 Sometimes companies can use window dressing to change their financial statements
 Different divisions may need a comparison to different industry averages
 It is the benchmark to industry leaders’ ratios, not industry averages
Section IV. Valuation
1. Value of the firm based on the Free Cash Flow Model
a. Create Pro Forma Financial Statements for five years
(See in Appendix- part a)
b. Calculate the firm’s projected free cash flows for the next 5 years
Actual Projected
2018 2019 2020 2021 2022 2023
Calculating of Free Cash
Flow
Required net operating $ $ $ $ $ $
44

working capital (1,986) (2,343) (90) (34) (9,357) (6,337)
Required net plant and
equipment 23,359 24,650 24,650 28,970 29,220 30,150
Required total net operating
capital 21373 22307 24560 28936 19863 23813
Required net investment in
operating capital = change in
total net operating capital
from previous year 0
$
934
$
2,253
$
4,376
$
(9,073)
$
3,950
NOPAT [Net operating
profit after taxes = EBIT x
(1-Tax rate) T=40% 0
$
8,055
$
8,216
$
8,380
$
8,548
$
8,718
Less: Required investment in
operating capital 0 934 2253 4376 -9073 0
Free cash flow 0
$
7,120.5
3
$
5,962.6
2
$
4,003.94
$
17,620.5
3
$
8,718.48
c. Value a company using two-stage model
i. Stage One- Five years of non- constant growth.
Actual Projected
2018 2019 2020 2021 2022 2023
Calculating of Free Cash
Flow
Required net operating
working capital
$
(1,986)
$
(2,343)
$
(90)
$
(34)
$
(9,357)
$
(6,337)
Required net plant and
equipment 23,359 24,650 24,650 28,970 29,220 30,150
Required total net operating
capital 21373 22307 24560 28936 19863 23813
Required net investment in
operating capital = change in
total net operating capital
from previous year
$
934
$
2,253
$
4,376
$
(9,073)
$
3,950
NOPAT [Net operating profit
after taxes = EBIT x (1-Tax
rate) T=40%
$
8,055
$
8,216
$
8,380
$
8,548
$
8,718
45

Less: Required investment in
operating capital 934 2253 4376 -9073
Free cash flow
$
7,120.5
3
$
5,962.6
2
$
4,003.9
4
$
17,620.53
$
8,718.48
Terminal Value = $15, 6753.57
Value of firm in 2023 = $165,472.06
ii. Stage Two- constant growth
Present Value $6,424.15
Present Value $1,833.87
Present Value $3,213.57
Present Value ($6,011.25)
Present Value ($5,211.45)
Operation value of the company at the end of 2018 $248.89
The total market value of the company= value of its operation + value
of no operating assets $4,462.89
What is the value of common equity?
Long-term debts + Long- term affiliates + Long-term financial Obligation
+Other long-term liabilities $30,230.00
Preferred stock 0
Value of common equity (Value left for common stockholders) -$25,767.11
Value per share $0.00
d. The non- constant growth rate is beneficial because the value of the firm is high in this
method i.e. $165,472.06. It is advantageous for the company to adopt this method because with
the help of this method the company can take a loan from the government and other financial
46

institutions. This growth rate helps the company to survive in the industry which is full of
competition.
e. Degree of confidence = 95%
With a degree of confidence of 95% represents that non- constant growth rate is the suitable
method for the company and this method provides benefit to the company to capture more
market share and also helps to earn more profits from this growth rate.
2. Fundamental Analysis- Dividend discount models
a. Dividend discount models
i. The constant dividend growth model
Actu
al Projected
Particulars 2018
201
9
202
0 2021 2022
202
3
202
4
202
5
202
6
Dividend paid per
share 0 0 0 $0.45 $0.47
$0.4
9
$0.5
2
$0.5
4
$0.5
7
Growth Rate
3.50
% 5% 5% 5% 5%
Cost of
Equity 15%
Terminal
Value 4.068
Total $4.54
ii. Two-stage dividend growth model
Present Value $0.00
Present Value $0.00
Present Value $0.00
47

Present Value ($0.26)
Present Value ($0.23)
Present Value ($0.21)
Present Value ($0.19)
Present Value ($0.15)
Present Value ($0.16)
Value per share ($1.21)
b. Sensitivity analysis on the growth rate
It is also known as “what- if” or simulation analysis and use to predict the outcome of a decision
given a certain range of variables. It is beneficial for the company to select the constant dividend
growth model which provides benefit to the shareholders and also to the company (Moolman
171).
c. The constant dividend growth model is a useful to model which provides accurate dividend
rate to the company and also for shareholders in an appropriate manner. It is also determined if a
stock is undervalued or overvalued assuming that the company’s expected dividends grow at a
value “g” which is reduced from the required rate of return (Easton and Sommers).
Conclusion
The above calculations concluded that financial management plays a vital role in the company
because well managed and adequate finance helps the company to achieve its targets at a time. In
this report, various methods or techniques are used to evaluate the financial performance of the
company in the market. The investors and shareholders can use financial management tools and
techniques to analyse the company’s financial performance from year to year.
48

49

References
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(2018).
Finkler, Steven A., Daniel L. Smith, and Thad D. Calabrese. Financial management for public,
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Gupta, Sachin. "A Comparative Analysis of Wired and Wireless Network
Architecture." International Journal of Emerging Trends in Research 1.1 (2016): 05-11.
Moolman, Anneke Maré. "The Usefulness Of Analytical Procedures, Other Than Ratio And
Trend Analysis, For Auditor Decisions." The International Business & Economics Research
Journal (Online) 16.3 (2017): 171.
Nakamura, Emi, Dmitriy Sergeyev, and Jon Steinsson. "Growth-rate and uncertainty shocks in
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(2017): 1-39.
Williams, Edward E., and John A. Dobelman. "Financial statement analysis." World Scientific
Book Chapters (2017): 109-169.
50

Appendices
a. Pro Forma Financial Statements for five years
Income Statement Actual Projected
Particulars 2018 2019 2020 2021 2022 2023
($
Millions
)
($
Millions
)
($
Millions
)
($
Millions
)
($
Millions)
($
Millions
)
Total Revenues 43,310
47641.0
0
52405.1
0
57645.6
1 63410.17 69751.19
Operating Expenses
Cost of services,
exclusive of depreciation
and amortization shown
separately below 6,307 6,496 6,691 6,892 7,099 7,312
Costs of equipment sales 12,047 12,529 13,030 13,551 14,093 14,657
Selling & general and
administration 13,161 13,424 13,693 13,967 14,246 14,531
Depreciation and
Amortization 6,486 6,745 7,015 7,296 7,588 7,891
Impairment Charges -
Gains on disposal of
spectrum licenses -195 -368 -563
Other net -
Cost of Metro PCS
business Combinations -
Total operating costs 38001 39,000 40,061 41,142 43,025 44,391
Operating Income or
(Loss) 5,309 8,641 12,344 16,503 20,385 25,361
Other Income (Loss)
Interest expenses to
affiliates -522 -587 -580 -360 -465 -425
Interest expenses -835 -935 -1,035 -650 -965 -1100
Interest income 19 18 23 54 56 34
Other income (expenses),
net -54 -60 -58 -59 -54 -53
Total other expenses,
net -1,392 -1,564 -1,650 -1,015 -1,428 -1,544
Income (Loss) before 3,917 7,077 10,694 15,488 18,957 23,817
51

income tax
Income tax benefit
(expenses) -1029
-
2123.17
5
-
3208.20
2
-
4646.43
53
-
5687.012
576
-
7144.983
25
Net Income (Loss) 2,888 4,954 7,486 10,842 13,270 16,672
Number of shares 100 100 100 100 100 100
Balance Sheet Actual Projected
Assets 2018 2019 2020 2021 2022 2023
($
Million
s)
($
Million
s)
($
Million
s)
($
Million
s)
($
Million
s)
($
Million
s)
Current Assets
Cash and cash equivalents 1,203 1,228 1,295 2,450 3,267 6,874
Short- Term investment -
Equipment installment plan
receivable, net 2,538 2,678 2,550 2,858 3,278 3,457
Accounts Receivable 1,769 1,895 1,965 2,068 2,198 3,270
Accounts Receivable from
affiliates 11 21 32 35 38 31
Inventories 1,084 1,020 1,145 1,008 1,840 1,980
Deferred tax assets, net/ Asset
purchase deposit - 2,980 3,108 3,206
Other Current Assets 1,676 1,735 1,859 2,179 2,250 2,480
Total Current Assets 8,281 8,577 11,826 13,706 12,871 21,298
Property and Equipment, net 23,359 24,650 24,650 28,970 29,220 30,150
Goodwill 1,901 1,901 1,901 1,901 2,103 2,203
Spectrum Licenses 35,559 37,650 38,950 41,150 34,520 41,460
Other intangible assets, net 198 286 295 316 375 425
Equipment installment plan
receivables due after 1 year, net 1,547 1,650 1,725 1,510 985 1,055
Other Assets 1,623 1,680 1,950 2,150 2,270 1,960
Total Assets 72,468 76,394 81,297 89,703 82,344 98,551
Liabilities and Equity
Current Liabilities
Accounts payable & accrued
liabilities 7,741 8250 8547 10703 19144 23251
Current Liabilities to affiliates 200 435 875 760 346 589
Short- term debts 841 984 985 379 658 1179
52

Deferred revenue 698 784 835 1164 1296 1742
Other current liabilities 787 467 674 734 784 874
Total current liabilities 10,267 10920 11916 13740 22228 27635
Long-term debts 12,124 19065 20265 22687 28452 22856
Long-term to affiliates 14,582 12465 9845 12557 17563 16865
Tower obligations 2,557 2856 2326 2863 2158 2683
Long-term financial obligation -
Deferred tax liabilities 4,472 4765 5368 5967 6456 7890
Deferred rent expense 2781 2781 2781 2781 2781 2781
Other long- term liabilities 967 967 967 967 967 967
Total long- term liabilities 37,483 42899 41552 47822 58377 54042
Common Stock 38,010 47,745 53,995 56,131 38,217 44,509
Accumulated deficit -14,292 -14,250 -14,250 -14,250 -14,250
Total shareholders' equity 24718 33,495 39,745 41,881 23,967 44,509
Total liabilities and
shareholders' equity 72,468 76,394 81,297 89,703 82,344 98,551
b. Working Notes
53