Executive-level financial report to the chief financial officer (CFO) Research Paper

Executive-level financial report to the chief financial officer (CFO) of a mythical company - Research Paper Example In order to evaluate past financial performance, the report studied how Sprint established relationship between Revenue and Expenses, as well as Cash flow and debt. In order to evaluate past stock performance, the report studied dynamics of stock and EPS. The report paid substantial attention to Sprint’s upcoming projects. Sprint Nextel Corporation (Sprint) is a communication company that operates in two segments: Wireless and Wireline. In the United States, Sprint is the third largest wireless carrier company after Verizon and AT&T (FORM 10 – K, 2010). It serves about 55 million customers with mobile voice, data, and web service under the Sprint corporate brand, which includes retail brands of Sprint, Nextel, Boost Mobile, Virgin Mobile, and Assurance Wireless on networks that utilize the third generation (3G) code division multiple access (CDMA), integrated Digital Enhanced Network (iDEN), or Internet protocol (IP) technologies (Company Information, 2013). High Technology Corporation (HTC) is a new fully integrated wireless communication service provider for the international market. HTC after competitive technical and economical product evaluation has determined to select Sprint as a potential supplier. This report intends to evaluate Sprint’s past financial and stock performances, an alyze current and future business aspects in order to recommend if Sprint would remain financially strong to enter into a long-term contract with the HTC. On February 7, 2013, the Associated press reported that Sprint lost $1.3 billion in the preceding fourth quarter, about the same as a year ago. In the period from October to December, the company lost 44 cents a share. The loss is steady as in the previous year, but revenue went up 3.2 percent from 8.7 billion to 9.0 billion during the same period a year ago. This increase was attributed to customers changing regular phones