...last 5 years Income Statements and Balance Sheets for Vodafone Group Public Limited Company and carry out ratio analysis for my four chosen user groups. Vodafone is one of the world’s leading mobile telecommunications operator with a total of 91,272 employees as of March 2013. 2. User Groups and ratio Analysis 2.1 Employees Employees are interested in the company’s stability and profitability. They are after the ability of the company to pay salaries and provide employee benefits. They may also be interested in the company’s financial position and performance to assess the possibility of company expansion and career opportunities. Ratio 2009 2010 2011 2012 2013 ROCE 4.7% 7.4% 4.5% 9.7% 4.2% Sales Revenue per employee £518,566 £523,261 £547,137 £537,402 £486,951 Return on capital employed is considered to be the primary measure of profitability. ROCE compares inputs (capital invested) with outputs (operating profit). Fig.1 ROCE went from the highest registered in the 5 year period in 2012 of 9.7% to the lowest ever in 2013 of 4.2%. This is a substantial decline to occur in an year interval which indicates a poor performance. The sales revenue per employee ratio provides a measure of the productivity of the work force, relating sales revenue generated to a particular business resource, namely labour. 2.2 Lenders Financers have lent money to the business and are interested in accounting information to assess if the organization can repay...
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...HOLD VODAFONE UK – Market price at 10/30/2015 closing price: 214.25￡ YAO JIACHEN, LI MINQIAN, PENG XIANGYU & HO YUENMING – 10/30/2015 Activities Vodafone is a British multinational telecommunications company Sector headquartered in London and one of the most valuable telecoms brands in the world. Vodafone owns and operates networks in 21 Wireless communication 52wk range(GBP) 201.25--258.00 Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in over 65 countries. Vodafone has a primary YTD RETURN -3.77% listing on the London Stock Exchange and is a constituent of the FTSE 100 Analyst consensus HOLD countries and has partner networks in over 40 additional countries. Its Index. It also has a secondary listing on NASDAQ. Vodafone was founded in 1984. The evolution of 'Vodafone' started in Accounting and market information 1982 with the establishment of the 'Racal Strategic Radio Ltd' subsidiary of Racal Electronics plc – UK's largest maker of military radio technology, which formed a joint venture with Millicom called 'Racal', which evolved into the present day Vodafone. In 30 years, a small mobile operator in Newbury has grown into a global business and one of the most valuable telecoms brands in the world. It now has mobile operations in 27 countries and partner with mobile networks in 48 more. Today, Vodafone have 434 million mobile customers around the world. ...
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...explained by increased income tax and equity in affiliates. Total current assets grew due to an increase in cash and accounts receivables turnover Meanwhile, Vodafone Group PLC (with a fiscal year of April – March, with stated values in GBP) has had a relatively constant net income and EBITDA in 2010 and 2011.Its balance sheet shows an increase in current assets with a decrease in total assets due to a reduction in long-term investments. Consequently – current and total liabilities for Vodafone also fells during the years (Marketwatch, 2012). Financial Performance: Financial Ratios, DuPont Analysis, Additional Factors One of the basic measures of liquidity – the current ratio, displays that both Vodafone’s and Sprint Nextel’s liquidity has been rising in the past three fiscal years with Vodafone’s current ratio increasing from 0.47 in 2009 to 0.50 in 2010 and ending at 0.63 in 2011 while Sprint Nextel’s current ratio in 2009 was 1.27 with a drop to 1.25 in 2010 and growing to 1.59 in 2011. In this regard, Vodafone’s current ratio is extremely low compared to the IT industry average of 1.67 for 2011. Sprint’s liquidity is reasonably consistent in comparison to the industry. On the subject of debt – Vodafone has lowered its ratio over the past three fiscal years while Sprint’s level of indebtedness has risen. Vodafone’s debt ratio fell from 44.5% in 2009 to 41.3% in 2011 while Sprint’s rose from 69.4% in 2009 to 77.8% in 2011. The...
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...Cash Flow Forecasting Essential Capital Markets Books in the series: Cash Flow Forecasting Corporate Valuation Credit Risk Management Finance of International Trade Mergers and Acquisitions Portfolio Management in Practice Introduction to Project Finance Syndicated Lending Cash Flow Forecasting Edited by Andrew Fight A MSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD P ARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Suite 400, Burlington, MA 01803 First published 2006 Copyright © 2006, Andrew Fight. All rights reserved. Note The materials contained in this book remain the copyrighted intellectual property of Andrew Fight, are destined for use in his consulting activities, and are to be clearly identified as copyrighted to him. Andrew Fight has asserted his right under the Copyrights, Designs, and Patents Act 1988, to be identified as author of this work, and confirms that he retains ownership of the intellectual property and rights to use these materials in his training courses and consulting activities. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission...
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...Introduction Industry Profile India's telecommunication network is the third largest in the world and the second largest among the emerging economies of Asia on the basis of its customer base and it has one of the lowest tariffs in the world enabled by the hyper-competition in its market. Major sectors of the Indian telecommunication industry are telephony, internet and broadcasting. Today, it is the fastest growing market in the world. The total number of subscribers during July-2012 was recorded to be 679.05 million with an increase from the previous year of 0.25%. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$51.26 billion) for 2010–11 financial year, while revenues from telecom equipment segment stood at 117,039 crore (US$21.18 billion).The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for India’s resurgent India’s economic growth. Major sectors of telecommunication industry in India are telephony, internet and broadcasting. The primary regulator of telecommunications in India is the Telecom Regulatory Authority of India (TRAI). The mission of TRAI is to create and nurture an environment which will enable the quick growth of the telecommunication sector in the country. One of the major objective of TRAI is to provide a transparent policy environment. TRAI has regularly issued orders and directions on various subjects like tariff, interconnections...
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...Business Analysis and Valuation of Vodafone Group Iryna Saplitsa Supervisor: Tore Leite NORGES HANDELSHØYSKOLE This thesis was written as a part of the Master of Science in Economics and Business Administration program ‐ Major in International Business. Neither the institution, nor the advisor is responsible for the theories and methods used, or the results and conclusions drawn, through the approval of this thesis. 2 Acknowledgments This thesis is written in conjunction with my final semester as a Master student at the Norwegian School of Economics and Business Administration. The process of completing this paper has been both rewarding as well as challenging. I would like to express my sincere gratitude towards a person that has been very helpful in finalizing this thesis. My academic advisor, Associate Professor Tore Leite, deserves special thanks for his support and guidance through the challenges of applying financial theory into practice. I am very grateful for his invaluable help, all constructive comments and timely recommendations. Iryna Saplitsa Bergen, June 2008 3 Executive Summary Every asset, both financial and real, has a value. The main factor of successful investments and management of these assets is in the understanding not only what the value is, but the source of the value. Vodafone Group, the world’s leading ...
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...ANNAMALAI UNIVERSITY DIRECTORATE OF DISTANCE EDUCATION M.B.A. FIRST YEAR Academic Year : 2015 - 2016 ASSIGNMENT TOPICS This booklet contains assignment topics. Students are asked to write the assignments for EIGHT papers as per instructions. Last date for submission : Last date for submission with late fee ` 300/- : 29-02-2016 15-03-2016 NOTE: 1. Assignments sent after 15-03-2016 will not be evaluated. 2. Assignments should be in the own handwriting of the student concerned and not type-written or printed or photocopied. 3. Assignments should be written on foolscap paper on one side only. 4. All assignments (with Enrolment number marked on the Top right hand corner on all pages) should be put in an envelop with superscription “MBA Assignments” and sent to The Director, Directorate of Distance Education, Annamalai University, Annamalainagar – 608 002 by Registered post. 5. No notice will be taken on assignments which are not properly filled in with Enrolment Number and the Title of the papers. 6. Students should send full set of assignments for all papers. Partial assignments will not be considered. ASSIGNMENT INSTRUCTIONS Write assignments on any TWO topics in each paper out of the FOUR. For each Topic the answer should not exceed 15 – pages. Each assignment carries 25 marks (2 topics). Dr.S.PUGAZHENDHI DIRECTOR 2 1.1 PRINCIPLES OF MANAGEMENT 1. “Planning is looking ahead, and Control is looking back”. Comment. 2. Why do most...
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...Problem Solution: Global Communications MBA500 Deborah Elver August 27, 2005 Problem Solution: Global Communications This paper will apply the nine-step problem solving model to the scenario involving Global Communications. It will provide the background, define the problem, describe end-state goals, identify and analyze an alternative solution based on benchmarking, examine associated risks, provide an optimal solution and implementation plan, and evaluate the results. Situation Background (Step 1) Global Communications (Global), a telecommunications company, is faced with lack of consumer confidence and economic pressure. Senior management has developed an aggressive plan to hit the market with new services and an alliance with a satellite provider. They have also identified cost-cutting measures with hopes of increasing profits. In order for the plan to come to fruition, they will market on an international level with the goal of becoming a truly global resource. Subsequently, this development plan has created several challenges (UniversityElver, 2005). Issue Identification Several challenges or issues have been identified including—but not limited to—globalization and competition, building market share and alliances, reducing and relocating staff, outsourcing technical call centers to Ireland and India, and the lack of communication to Union and stakeholders. The lack of communication to Union and stakeholders regarding this initiative...
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...Vodafone Group Plc Annual Report for the year ended 31 March 2012 Creating a more valuable Vodafone We are creating a more valuable Vodafone Our strategy is focused on four areas of growth potential and founded on strong capital and cost discipline. This is delivering results: we have outperformed our key competitors in most major markets, and returned over £10 billion to shareholders in the last 12 months. £46.4bn £11.5bn Group revenue increased 1.2% to £46.4 billion with a strong demand for data services and further voice penetration in emerging markets. Adjusted operating profit was £11.5 billion, slightly down on last year (up 2.5%* on an organic basis) supported by a good performance from our US associate, Verizon Wireless. £6.1bn Free cash flow of £6.1 billion, decreased due to the sale of our interests in China and France and a lower working capital benefit. 9.52p Total ordinary dividends per share of 9.52 pence, up 7.0% in line with our dividend per share growth target. We also paid a special dividend of 4.0 pence per share and our £6.8 billion share buyback programme is almost complete. £6.4bn Capital expenditure increased by 2.3%, as we continued to maintain our high level of investment to support our network strategy. 14.91p Adjusted earnings per share of 14.91 pence, down 11.0% on last year, resulting from the loss of income following the sale of several businesses and higher financing costs. Vodafone Group Plc Annual Report...
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...----------------------- HKUST ACCT 101- L18 GROUP 5 2005-2006 FALL SEMESTER Financial Ratio Analysis Content Introduction………………………………………p.3 Overview of AT&T………………………………p.4 Overview of China Mobile (HK) Ltd…………….p.5 Overview of Hutchison…………………………..p.6 Overview of New World Mobility……………….p.7 Overview of SmarTone…………………………..p.8 Overview of Sunday……………………………...p.9 Overview of Verizon…………………………….p.10 Financial Ratio Analysis…………………..…p.11-19 Conclusion…………………………………...p.20-22 INTRODUCTION In this project, we aim to find out the most outstanding telecommunications company for investors to invest on by using financial ration analysis. The seven firms under investigation in this project are AT&T (US), China Mobile (Hong Kong) Ltd., Hutchison Telecommunications Ltd., New World Mobile Ltd., SmarTone-Vodafone, Sunday Communications Ltd., Verizon Communication (US). We are going to begin our analysis by a series of overviews on each firm and related processed data. It is then followed by a clear analysis on the financial ratio of each firm and finally a well-supported conclusion will be provided to end up this project. This project is carried out under certain assumptions. It is presumed that there are only 7 firms in the telecommunication market for our investor to make accurate calculation and recommendation. There is also an elimination of all other resources except the financial records, which...
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...& Confectionery, Branded Apparel, Personal Care and Stationery. TELECOM SECTOR INTRODUCTION: The Indian telecom industry is the fastest growing industry with an addition of 9- 10 million monthly subscribers. The Indian telecommunications network with over 995.9 Million subscribers is second largest network in the world after China. Major players in this sector are BSNL, MTNL, Airtel, Vodafone, BPL, Tata, Idea, etc. Buyer power and threat of rivalry is very high in Indian Telecom Sector. Telecom Industry Sectors From holistic point of view telecom industry can be divided to four sub-sets. The major forces in Indian telecom industry are Service providers. All major telecom equipment suppliers have their R&D centres in India. In last 5 years, global giants in mobile devices have set up their manufacturing facitilities in India EXISTING RIVALRY IN INDIAN TELECOM INDUSTRY There are three types of players in telecom services: • • • State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices, Shyam ( Southern India) Foreign invested companies (Vodafone, Aircel, Bharti Tele-Ventures, Escotel, Siestema Idea Cellular, BPL Mobile, Spice Communications) Wireless Segment (GSM, CDMA & FWP(FIXED WIRELESS PHONE) Wireless subscriber base increased from 525.15 Million in December-09 to 545.05 Million at the end of January-2010 at a monthly growth rate of 3.79%. Wireless...
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...Introduction: Overview of the hedging techniques: In the financial market, almost all of companies need to face the currency risk. In order to manage the currency risk, companies will use different hedging techniques, such as financial and operational hedging techniques. For example, money market, futures contracts, options and forwards contracts are commonly used by firms, as well as operational hedging techniques. All of 4 types of financial hedging techniques are short-term hedge. Money market is a part of financial markets for assets involved in short-term borrowing,lending, buying and selling. Its features are high liquidity, lower risk, such as treasury bills. Futures contracts are future transaction for buying or selling, and made by Futures exchange. The date and place of the transaction have been provided. There are some features of futures contracts. Quantity, commodity and quality have been limited, excepting the price. Also, it cannot be done over-the-counter. Options is a financial tool, which based on futures. If purchaser hold the options, he/she will has a right, not the obligation, to buy from or sell to the seller of the provided commodity in the future as the same price as the price agreed now. The last financial hedging technique, forwards contracts, is a non-standardization contact between two parties to sell or buy in the future. Curb-exchange and cash transaction are the feathers of forward contact. This essay will focus on two operational hedging techniques...
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...Course Project (Acc504-Managerial Accounting) Verizon Communications, Inc [pic] Team Verizon By: Sanobar Salim Adam Abraham Johnny Ly Salih December 14, 2014 Executive Summary Verizon Communications Inc., headquartered in New York, is a global leader in providing broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, serving more than 93 million customers. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a workforce of 238,000 and last year generated revenues of more than $120.5 billion. The major asset for Verizon commination is their Financial Stability: According to Verizon Communications 2013 Annual Report, the company has $227.3 billion in assets, operating revenues of $120.5 billion, Gross Profit ratio of 19.5, return on asset of 8.6, return on equity of 24 %and cash and cash equivalents at the end of the year ranging from $1.2 billion – $9.7billion over...
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...EXECUTIVE SUMMARY This report examines the international expansion process of Bharti Airtel as a result of increasing competition in the Indian telecom industry during the last 2-3 years. The report provides a detailed account of the evolution of the Indian telecom industry analysis. It gauges the industry through YIP’s globalization drivers and measures industry attractiveness through Porter’s Five Forces model. It also provides information about the increasing saturation and declining Average Revenue per User (ARPU) and the strategies major operators such as Bharti Airtel, Vodafone, Idea Cellular Ltd, Reliance Telecom Ltd, etc. are following to safeguard their profitability. The report discusses about the two fold strategy of tapping the rural market within India and netting talkers in emerging economies, followed by mobile operators in India to de-risk them. Whether it is the rural Indian market or other emerging markets, operators would be busy acquiring subscribers. This, in turn, may result in erosion in profitability. There is no question of profitability. It is all about registering your presence and building psychological pressure. On the other hand, the Indian market has yet to take-off when it comes to offering data-intensive mobile value-added services like m-commerce, healthcare services, governance, education, information and location-based services. But these areas are already contributing to revenues in many African and Middle Eastern countries. In...
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...Debtor Turnover 5.51 5.63 5.68 Ideal Ratio – 10 to 12 times. Analysis – there is a fall in the debtors turnover ratio showing that the company’s management system is not sound enough to carryout its policies. Stock Turnover 5.71 5.97 6.52 Ideal Ratio – 8 times Analysis – there is a fall in the ratio showing that the company is not efficient enough to sell up its stock quickly. Asset Turnover 1.18 1.19 1.30 Ideal Ratio – 5 times Analysis – the fall in the ratio from the year 2012 to 2014 shows the underutilization of the fixed assets by the company. Debt Ratio 0.50 0.42 0.40 Ideal Ratio – 0.5 Analysis – the ratio shows an increase from 2012 to 2014. The ratio of 2014 is ideal for the company. Equty Ratio 0.73 0.69 0.52 Ideal Ratio – higher...
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