Frontier Communications Corporation (NASDAQ:FTR) kept active in profitability ratio analysis, on current situation shares price build up 4.15% to $2.51. The total volume of 56.06 Million shares held in the session, while on average its shares change hands 29176.63 shares.
Frontier Communications (FTR) has produced disappointing results for past three quarters. In fact, since the company purchased Verizon’s wireline business in California, Texas, and Florida (CTF), customer counts have steadily dropped for the internet and cable company. That $10.54 billion deal more or less doubled the size of the company, giving it not only, 3.3 million voice connections, 2.1 million broadband subscribers, and 1.2 million FiOS video customers, but also the size needed to operate more efficiently.
CEO Daniel McCarthy blamed in Q2 and Q3 suspended marketing efforts, due to the company’s desire to solve problems for its existing consumers before attracting new ones. In Q4, he said that getting rid of subscribers who had not been paying caused the drops.
Efficiency Evaluation in Focus
Entering into profitability analysis, the co has noticeable returns on equity ratio of -12%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at 5.10%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margin of FTR stands at negative -6.60%; that indicates a firm actually every dollar of sales keeps in earnings. The -2.10% returns on assets present notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.
To find out the technical position of FTR, it holds price to book ratio of 0.65 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. FTR is presenting price to cash flow of 5.60.
SAP SE (NYSE:SAP) also listed in significant eye catching mover, SAP attains returns on investment ratio of 11.30%, which suggests it’s viable on security that has lesser ROI.
To strengthen this concept we can use profit margin, which is standing at positive 16.50%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 23.30% and 71.60% respectively. Turns back to returns ratios, the co’s returns on assets calculated as 11.30%; that gives an idea as to how efficient management is at using its assets to generate earnings. Finally yet importantly, returns on equity stands at 15.20%.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 18.90%, and looking further price to next year’s EPS is 7.98%. While take a short look on price to sales ratio, that was 5.10 and price to earning ration of 30.40 attracting passive investors.