Alltel Terrell Williams ACG2021 SECTION 003

Executive Summary Alltel had a great year in They grew tremendously, due to the acquisition and merger of other major and minor wireless companies, such as US Cellular and Cingular wireless. Money was spent on replacing damaged networks and facilities after hurricane Katrina, but they helped their employees during the disaster. ir.net/phoenix.zhtml?c=74159&p=irol- reportsAnnual

Part A. Introduction  Scott T. Ford is the CEO  Little Rock, Arkansas is the location of the home office  Ending date of latest fiscal year was  Alltel provides multiple services (television, satellite, mobile phone, wireless headphones, etc.).  The blue areas are Alltel’s main coverage areas.

Part A. Audit Report TTTThomson Financial is the independent auditor for Alltel. AAAAlltel is in great financial standing. They have a lot of different resources that is providing the corporation with income. If they lose money in one area the other areas of business make up for that small portion of loss.

Part A. Stock Market Information  $56.97 is the recent stock price  $57.55 is the high for the year  $47.48 is the low for the year  Dividend per share  The information was given on 10/ 7/06  Alltel is in very good standing and seems that it will stay that way or get stronger.  whoIs whoIshttp://phx.corporate-ir.net/phoenix.zhtml?c=74159&p=irol- whoIs 

Part B. Industry Situation and Company Plans  Alltel is a very strong corporation. The business is only becoming stronger, due to the acquiring of US Cellular and the agreement between them and two of the most recognizable wireless companies in Sprint and Cingular.  In the last few years, Alltel has more than tripled their revenues and operating income. Not to mention, their customer base has grown tremendously.  whoIs whoIshttp://phx.corporate-ir.net/phoenix.zhtml?c=74159&p=irol- whoIs 

Part C. Income Statement  The format is that of a multistep format.   charts in millions  Gross profit it increasing which means that Alltel is growing and earning more revenue. Gross Profit 4, , Net Income Operations 2, ,697 Net Income 1, ,331.40

Part C. Balance Sheet   charts in millions  The assets account has changed the most with the companies outstanding growth. The liabilities are decreasing Total liabilities 10, Stockhold er’s equity 13,015.57,128.7 Total assets 24, ,603.7

Part C. Statement of Cash Flows  Cash flows from operations are more than the net income for the past two years  The Alltel corporation is growing through many long lived assets. The company is buying property and investing in itself.  The primary source of the companies financing is through their stock sales.  Overall, the cash has increased a great deal over the past two years.

Part D. Accounting Policies  Alltel’s accounting policies are the general accepted policies.  Alltel offers retirement plans, stock option plans, debt, supplemental cash flow information, income taxes, contingencies, preferred and common stock, employee stock ownership plans, quarterly financial data, and business segments.

Part E. Financial Analysis Liquidity Ratios   Working Capital  Current Ratio  Working capitol increased which allowed the current ratio to increase. current ratio to increase.

Part E. Financial Analysis Profitability Ratios  Profit margin 12.69% 14%  Asset turnover  Return on assets 6.30% 7.62%  Return on equity %  The return on assets has increased, which means that income is on the rise.

Part E. Financial Analysis Solvency Ratio  Debt to equity    Debt to Equity ratio is greatly improving and Alltel is starting to be owned by its stockholders.

Part E. Financial Analysis Market Strength Ratios  Price/earnings per share  Dividend yield.85%.88%  The price/earnings ratio per share has increased for This is a good sign for the stockholders.