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Current event article from “Financial World” reflecting the use of financial ratios to assess the operating health of GTE telephone company GTE, known for years as poorly run company GTE through some well-timed transformation has become one of the leading, p ....

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.... to 61%. Cash flow exceeds interest expense by a comfortable five times. Revenue growth from new and enhanced services increased 35% last year, to $1.2 billion and has grown 35% annually. GTE’s Return on Equity was 40% that far exceeds rest of its major competitors listed. The company’s boosting margins and overall returns are clearly pictured from the Net Profit Margin of 2.1%, a nice 36% improvement over the prior year. The company announced a plan to streamline its telecom operation by reducing expenses by $1.1 billion. The article estimates an increase in Earnings per Share from $3.18 to $4.5. GTE’s P/E Ratio of 15 is in par with its com ....