Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Good morning!

While putting AT&T through the paces on the RM
spreadsheet, I came across a problem that was echoed
by Laura on her analysis of Unilever: when calculating
Cost of Goods Sold (COGS), is that just Selling, 
General, & Administrative (SGA) costs or are the 
"operating expenses" rolled into it too? For AT&T, 
it meant a gross margin of 75% when not including
operating expenses, but a much lower margin when
including them. Which is more accurate?

Anyway, they look good in most other respects... it
was hard to pick good competitors because AT&T is 
involved in so many different businesses (voice, data,
Internet access, cable, wireless, etc) it's almost
not fair... I chose MCI WorldCom and Sprint...let me
know if anyone has a better idea(s)...

Here ya go...

                     AT&T                                      MCI Worldcom       Sprint    <Fill in Name>
                 Current PeriodYear-ago PerioYear-over-Year    Current Period  Current PeriodCurrent Period
                     Dec-98        Dec-97        Growth            Dec-98          Dec-98        <Date>
Income Statement . . .
  Sales                 53,223        51,577      3.2%                  17,678        17,134
  Cost of Goods S       13,015        14,670     -11.3%                  4,312        14,059
  Net Income             6,398         4,415      44.9%                 (2,669)          414
  Shares Outstand    2,198,625     1,855,042      18.5%

Balance Sheet . . .
  Cash & Equivale        3,160           318     893.7%                  1,710           605
  Current Assets        14,118        16,777     -15.8%                 10,639         4,387
  Short-term Debt        1,171         4,085     -71.3%                  4,756             0
  Current Liabili       15,442        17,317     -10.8%                 16,029         5,441
  Long-term Debt         5,556         7,857     -29.3%                 16,083        11,942
                                                                              1             1             0
Margins & Ratios . . .                                                                                     Competitors' Average
  Gross Margins           75.5%         71.6%      4.0                    75.6%         17.9%                   46.8%
  Net Margins             12.0%          8.6%      3.5                   -15.1%          2.4%                   -6.3%
  Cash-to-Debt             0.47          0.03    1664.1%                   0.08          0.05                    0.07
  Net Cash              -3567.0      -11624.0      N/A                 -19129.0      -11337.0                -15233.0
  Fool Flow Ratio          0.77          1.24    -38.3%                    0.79          0.70                    0.74


                 Continue Here

Ranking Rule Makers

1) Brand          Points (0-1)                                3) Financial Dire Points (0-3)
Familiarity                   1                               Sales Growth                  0
Openness                      1                               Gross Margins                 3
Optimism                      1                               Net Margins                   3
Legitimacy                    1                               Shares Outstandin             0
Inevitability                 1                               Cash-to-Debt                  2
Solitariness                  1                               Fool Flow Ratio               3
Humor                         1                               Expansion Potenti             2
  Subtotal                    7                                 Subtotal                   13

2) Financial Loca Points (0-2)                                4) Monopoly Statu Points (0-4)
Mass Market Habit             1                               Gross Margins                 4
Gross Margins                 2                               Net Margins                   4
Net Margins                   2                               Net Cash                      4
Cash-to-Debt                  0                               Fool Flow Ratio               0
Fool Flow Ratio               2                               Convenience                   4
Your Interest                 2                                 Subtotal                   16
  Subtotal                    9
                                                              5) Your  Enjoymen             1

                   Total Score             46  Second Tier


-- Chad
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.