Vodafone Accounting Ratios

In: Business and Management

Submitted By cescfabregas4
Words 571
Pages 3
Accounting Project FAC210 / Dr.Doaa Abdu * Liquidity Ratios: 1. Current Ratio =Current AssetsCurrent Liabilites = 13029/27947 = 0.47 (2009) = 14219/28616 = 0.50 (2010) Comment: Current Ratio shows the company's ability to pay its short term obligations by its current assets. The ratio is better when higher and it improved from 2009 to 2010 2. Quick Ratio =Current Assets-InventoryCurrent Liabilites = (13029-412)/27947 = 0.45 (2009) = (14219-433)/28616 = 0.48 (2010) Comment: Quick Ratio shows the company's ability to pay its short term obligations by its easy to convert to cash assets, which the inventory isn't. The ratio is better when higher and it improved from 2009 to 2010 * Activity Ratios 1. Inventory Turnover =Cost of goods soldInventory = 25842/412 = 63 times (2009) = 29439/433 = 68 times (2010) Comment: A ratio showing how many times a company's inventory is sold and replaced over a period. The higher the better and it improved from 2009 to 2010 2. Average Collection Period =Accounts RecievableSales per day = 7662/ (41017/365) = 68 days (2009) = 8784/ (44472/365) = 72 days (2010) Comment: This is a ratio that shows how much time it is taking the company to collect its payments owed from customers. The lower the better which means that it deteriorated from 2009 to 2010

3. Asset Turnover =SalesTotal Assets = 41017/152699 = 0.27 (2009) = 44472/156985 = 0.28 (2010) Comment: This is ratio showing the amount of sales generated for every dollar's worth of assets. The higher the better which means it improved from 2009 to 2010 * Debt Ratios 1. Debt Ratio =Total LiabilitesTotal Assets = 67922/152699 = 44.5% = 66175/156985 = 42.2% Comment: A ratio that indicates what proportion of debt a company has relative to its assets. The lower the better…...

Similar Documents

Financial Analysis - Vodafone & Spring

...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 increase in the debt ratio is cause for alarm as its EBIT for 2011 was in the red meaning that its times interest earned ratio is in the negative allowing for......

Words: 5042 - Pages: 21


...Introduction This report will explore the strategic analysis of Vodafone Plc which is one of the leading companies in the Telecommunication industry. Besides, the main point of the essay is to illustrate the resources and capabilities of literature and comprehend how Vodafone generates sustainable competitive advantage. Firstly, the theory is important which could support the opinion and develop it. It includes resource-based view and VRIN. Furthermore, using the RBV analyse the resources as core competence helps organization competitive the competitor. Moreover, the VRIN is a way to explain and summary Vodafone how to keep it competitive advantage. Theory Resource-based view (RBV) The resource-based view is a way of viewing the firm approach to strategy formulation. RBV focus on the internal environment rather than the external environment has been viewed as a more secure base for formulating. The RBV emphasizes the internal capability of the organization in formulating strategy to achieve a sustainable competitive advantage in its market and industry. Besides, a bundle of resources and capability may be applied as a core competence to a market opportunity. (Grant and Jordan, 2012) The internal environment also can create a new market for the organization. Valuable, Rare, Inimitable, Non-substitutable (V.R.I.N.) An organization needs a sustainable competitive advantage which cannot be implemented by a competitor and competitor cannot get benefit from it......

Words: 2159 - Pages: 9


...Vodafone: A Marketing Analysis Vodafone: A Marketing Analysis Abhimanyu Harlalka B13063 Ankit Prasad B13073 Dhruv Gupta B13083 Lakshita Jain B13093 Puskar Pandey B13103 Shashank Gandhi B13113 Vinay Goyal B13123 Abhimanyu Harlalka B13063 Ankit Prasad B13073 Dhruv Gupta B13083 Lakshita Jain B13093 Puskar Pandey B13103 Shashank Gandhi B13113 Vinay Goyal B13123 Contents Aggregate Market Factors 3 Market Size 3 Macro-economic factors 5 Political & Legal: 6 Economic: 8 Technological: 11 Micro Environmental factors 11 Pressure from substitutes & Market power of suppliers 12 Pressure from substitutes: 12 Market power of suppliers: 13 Category Capacity: 13 Current rivalry in industry : 13 Threat of new entrants: 14 Bargaining power of buyers: 14 Consumer Behaviour 15 RESEARCH METHODOLOGY 16 Company and Competitor Analysis 20 Objective 20 Product: 22 Vodafone Services 22 Price: 22 Place: 22 Promotion: 23 Profits (FY 12-13) 23 Customer analysis 24 Value proposition 27 Expected Future Strategies 28 The way ahead 30 Telecom Industry: An Overview The telecom industry has witnessed significant growth in the subscriber base over the last decade with increasing network coverage and a competition induced decline in tariffs acting as a catalyst in growth in the......

Words: 7475 - Pages: 30


...   1 – 18 Part A: About the topic Part B: About Telecom industry Part C: About Vodafone 19 – 23 II. III. IV. Chapter 2: Research Methodology  Title of the Project  Objectives of the study  Scope of the study  Sample design  Tools of data collection  Plan of analysis  Limitation of the study Chapter 3: Data Analysis and Interpretation  Data table  Graphical Representation  Interpretation Chapter 4: Summary of findings 24 – 43 44 – 46 V. Chapter 5: Suggestion & Conclusion 47 – 49 VI. Bibliography 50 – 51 CHAPTER – 1 INTRODUCTION 1 Part A: ABOUT THE TOPIC Vodafone started its operation in Assam in the year 2009. It has over the years proved to be one of the leading mobile network providers with a large subscriber base. These subscribers generate revenue for the company by using their products and services. Now the usages of customers are directly proportional to revenue generation for the company. Customers contributes to revenue of the company by using their products and services. This is termed as average revenue per unit (ARPU).Based on the ARPU customers are segmented into categories like:  Low Value Customers (ARPU 1 to 50)  Medium value customers (ARPU 51 to 150)  Potent (ARPU 151 to 200)  High value customers (ARPU 201 to 500)  Ultra high value customers ( ARPU >500) However, some customers of Vodafone after using the service for a while have reduced their usages. The reduction in usage cause......

Words: 8636 - Pages: 35


...with the topic – “What next for Vodafone? A strategic study of leadership and people performance in a successful organization”, for my report. Here, I will talk about the strategic planning introduced in the Vodafone. A discussion about the company’s mission, vision and goals of the company would be discussed in brief. After that, a SWOT (strength, weaknesses, opportunities and threats) analysis would also be done to have a better understanding of the environment in which the company is working. Then I will highlight the different types of strategies adopted by the company in the long run of its working. A discussion pertaining to the leadership styles being followed in Vodafone organization is discussed after. Vodafone’s strategic position, current strategy, sustainable competitive advantage as compared to the other companies is the next discussion of the topic. (Morden, 2007) Then comes the change management to be discussed about and the types of change management being followed in Vodafone is talked about. How can one find ways to resist those changes is also been thrown light on. Finally, after talking about all these topics, recommendation for the better working of Vodafone is also proposed which can be put into use. I chose this topic with this company because telecommunication is on the booming stage and few important strategies and leadership plays a vital role in the working of any company. VODAFONE Introduction Vodafone is mobile company and runs its......

Words: 1033 - Pages: 5

Accounting Report - Vodafone Group

...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......

Words: 582 - Pages: 3

Accessing the Financial Performance Using Accounting Ratios of Barclays Bank Ghana Limited

...1.0 INTRODUCTION 1 1.2 OVERVIEW OF INDUSTRY 2 2.0 COMPANY PROFILE 14 2.1 WHAT IS IMPRESSIVE ABOUT BBGL 15 3. ACCOUNTING POLICIES 17 4.0 FINANCIAL ANALYSIS 20 4.1 RATIO ANALYSIS 20 4.2 COMMON SIZE ANALYSIS 24 4.3 TREND ANALYSIS 25 5.0 EVALUATION AND CONCLUSION 27 6.0 WORKINGS 28 7.0 REFERENCES 34 1.0 INTRODUCTION With encouragements from the Ghana Stock Exchange for companies to be listed, it is very expedient that companies who show interest in being listed provide a profitable and an efficient view of the company to prospective investors. This is achieved in its financial statements. The decision to invest or not to invest in a company depends on the effectiveness and efficiency of the firm under consideration. Using various financial statement analysis tools, the potential investor may be able to make a decision to invest. The decision to invest does not only affect the investor but the firm as a whole. The firm will be able to raise enough capital to finance its operations. For firms whose capital requirements do not meet the requirement set by the bank of Ghana in February 2008 with deadline being December 2012, this is an avenue where such firms can fulfil this new requirement. With the current developments in the banking industry, banks of which Barclays bank is of no exception, should work at not only being profitable but also given investors value for their money. 1.2 OVERVIEW OF INDUSTRY In anticipation of the expected economic growth......

Words: 7280 - Pages: 30

D2 - the Adequacy of Accounting Ratios

...D2: Evaluate the adequacy of accounting ratios as a means of monitoring the state of a business in a selected organisation, using examples. 1.0 Terms of reference In this report, I will be evaluating the adequacy of accounting ratios, so that the owner can keep an eye on what condition is their business in. This will able the business to see whatever they are making profit or making loss. The business which I will particular focus at will be ISIS. Also, this report will include the advantage and disadvantage of using a profit & loss and balance sheet; I will outline the purpose of accounting ratios, plus take in account of the advantages and the limitations of each ratio, I will be also judge on how well the business is doing, and finally, I will conclude this report and give out my recommendation. 2.0 Advantages & limitations of using a P&L and Balance sheet for ISIS 3.1 Profit and loss account A profit and loss account gives us an overview on how well or bad the business has done with their finance, it will also include a record of their profit and loss. To make it even clear, it is a financial statement that summarises the revenue, cost and expenses of the business during the financial year. If the business has made profits, they will remain the same on their trading performance or if they eager to make more profit, they have to try to figure out something new to bring the business to another level. However, if the business has a......

Words: 1607 - Pages: 7


...Company profile Vodafone เป็นผู้นำในการให้บริการด้านโทรคมนาคมระดับนานาชาติและเป็นผู้ใ ห้บริการรายแรกๆ ใน U.K. ที่ได้รับใบอนุญาตการให้บริการโทรศัพท์มือถือ ในปี ค.ศ. 1986 Vodafone ได้เริ่มให้บริการเกี่ยวกับโทรศัพท์มือถือและหลังจากนั้น บริษัทก็สามารถกลายเป็นผู้นำของโลกในปี ค.ศ. 1999 ในที่สุด ด้วยการให้บริการครอบคลุมมากถึง 24 ประเทศ ผู้ใช้บริการ Vodafone มากถึง 31 ล้านรายหรือมากกว่า 960 ล้านคน บริษัทให้บริการที่ครอบคลุมทั้งการให้บริการด้านมือถือ และระบบสื่อสารอื่นๆ ทำให้ Vodafone มีสัดส่วน 7% ใน FTSE 100 index ในปี ค.ศ. 1988- 1993 ความต้องการด้านการใช้เทคโนโลยีที่ที่ขยายไปทั่วโลก ทำให้ Vodafone สามารถขยายธุรกิจไปสู่ประเทศอื่นๆ ทั่วโลก ในปี ค.ศ. 1999 Vodafone ได้เห็นความสำคัญของตลาดสหรัฐอเมริกา และได้รวมกับบริษัท AirTouch Communications และเปลี่ยนชื่อเป็น Vodafone AirTouch ในเดือนกันยายนปีเดียวกันได้ร่วมกันกับ Bell Atlantic Corporation เพื่อขยายระบบไร้สายให้ครอบคลุมยิ่งขึ้น โดยการบริหารงานร่วมกันนี้ 55% เป็นการถือหุ้นของ Bell Atlantic และอีก 45% เป็นการถือหุ้นของ Vodafone AirTouch โดยในเดือนตุลาคม Vodafone AirTouch/Bell Atlantic Alliance เป็นบริษัทผู้นำในการให้บริการระบบไร้สายในประเทศสหรัฐด้วยสัดส ่วนของตลาดมากถึง 15% ของทั้งประเทศ อย่างไรก็ดี Vodafone ก็ยังเน้นตลาดยุโรปด้วยสัดส่วนของตลาดมากถึง 62% ของตลาดทั้งหมด จากการขยายตัวนี้ ยุทธศาสตร์ของ Vodafone ได้เน้นไปที่การให้บริการทางระบบโทรคมนาคมด้วยโทรศัพท์เคลื่อนท ี่มากกว่าระบบอื่นๆ......

Words: 562 - Pages: 3

Ratio Analysis Under Different Accounting Rules

...Summary Comparing different companies under different rules, or comparing one company in different time period can be complicating and often misleading when differences in accounting methods are not captured. In this essay, I will start the analysis by examining each firm’s change in accounting methods compared to their previous year. Then I will move on to comparing the three companies’ ratios to conduct analysis of each company based on the DuPont Method. In addition, I will also look at how changes in accounting methods affected Seven and I holdings’ results in 2013 when compared to 2012. Finally, I will conclude my analysis on how comparable it was under different accounting methods based on above analysis. _____ Three Companies Chosen for Analysis For this ratio analysis assignment, I chose three companies from the UK, US and Japan: Walmart Country: US Industry: Supermarket Retail Accounting Standard: GAAP TESCO Country: UK Industry: Supermarket Retail Accounting Standard: IFRS Seven and I Holdings Country: Japan Industry: Supermarket Retail Accounting Standard: Japan Standard _____   Change/Amendments in Accounting Methods Walmart Even though there is a mention about recent accounting pronouncements and future adoption of those policies, there is and will be no effect in the firm’s net income, financial position or cash flows. Sainsbury Although there were two amendments effective from this annual reports, the firm has......

Words: 1255 - Pages: 6

Accounting Ratio

...Liquidity Ratios • Measures the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. • Ratios include the current ratio, the acid-test ratio, receivables turnover, and inventory turnover. Liquidity ratio = current asset___ current liabilities = 360042949 266476991 = 1.35 Asid test ratio = cash + short - long term investment + receivable (net) Current liabilities = 238446962+26656729+76692918____________________ 266476991 = 1.28 Receivable turnover = __Net credit sales____ Average net receivable = 574273012 (238446962+138220476)/2 = 3.049 : 1 365 days / 3.049 times = 119.71 days This means that receivables are collected on average every 217 days Inventory turnover = cost of goods sold Average inventory = 461246689 (18246340+2574857)/2 = 44.31 Profitability Ratios • Measures the income or operating success of a company for a given period of time. • Income, or lack of it, affects the company’s ability to obtain debt and equity......

Words: 391 - Pages: 2

Accounting Ratios and Monitoring Business Performance

...Task 11 (D2) Accounting ratios and monitoring business performance Ratio analysis can be used as a management tool to monitor and improve the performance of HSBC as well as being used by those outside of the organisation such as bank regulators, potential shareholders and suppliers to look at the performance of HSBC and compare it with other similar organisations. Information used for comparison must be accurate - otherwise the results will be misleading. There are four main methods of ratio analysis - liquidity, solvency, efficiency and profitability. If ratios of companies are to be compared it is important that the companies are in the same industry. It would be appropriate to compare HSBC ratios with other the ratios of other banks but not for example a construction company. Liquidity ratios These ratios should be used on a daily basis by management to monitor performance and manage cash flow risks. There are three types of liquidity ratio: * Current ratio - current assets divided by current liabilities. This assesses whether you have sufficient assets to cover your liabilities. A ratio of two for example shows you have twice as many current assets as current liabilities. * Quick or acid-test ratio - current assets (excluding inventory) divided by current liabilities. A ratio of one shows liquidity levels are high - an indication of solid financial health. * Defensive interval - liquid assets divided by daily operating expenses. This measures how......

Words: 1053 - Pages: 5

Financial Analysis Assigment-Vodafone

...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......

Words: 1901 - Pages: 8

Accounting Ratios

...CHAPTER 3 – ANALYZING FINANCIAL STATEMENTS Questions LG1-LG5 1. Classify each of the following ratios according to a ratio category (liquidity ratio, asset management ratio, debt management ratio, profitability ratio, or market value ratio). a. Current ratio – liquidity ratio b. Inventory turnover ratio – asset management ratio c. Return on assets – profitability ratio d. Accounts payable period – asset management ratio e. Times interest earned – debt management ratio f. Capital intensity ratio – asset management ratio g. Equity multiplier – debt management ratio h. Basic earnings power ratio – profitability ratio LG1 2. For each of the actions listed below, determine what would happen to the current ratio. Assume nothing else on the balance sheet changes and that net working capital is positive. a. Accounts receivable are paid in cash – Current ratio does not change b. Notes payable are paid off with cash – Current ratio increases c. Inventory is sold on account – Current ratio does not change d. Inventory is purchased on account– Current ratio decreases e. Accrued wages and taxes increase – Current ratio decrease f. Long-term debt is paid with cash – Current ratio decreases g. Cash from a short-term bank loan is received – Current ratio decreases LG1-LG5 3. Explain the meaning and significance of the following ratios a. Quick ratio - Inventories are generally the least liquid of a firm’s current assets. Further, inventory is the......

Words: 6484 - Pages: 26


...VODAFONE Vodafone Group is a global telecommunications company headquartered in London, United Kingdom It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers (behind China Mobile), with around 332 million proportionate subscribers as of 30 September 2010. It operates networks in over 30 countries and has partner networks in over 40 additional countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers. The name Vodafone comes from voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones". Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £92 billion as of November 2010, making it the third largest company on the London Stock Exchange. It has a secondary listing on NASDAQ. Vodafone have come a long way since making the first ever mobile call on 1 January 1985. Today, more than 359 million customers around the world choose vodafone to look after their communications needs. In 25 years, a small mobile operator in Newbury has grown into a global business and the seventh most valuable brand in the world. Vodafone now operate in more than 30 countries and partner with networks in over 40 more. In an increasingly connected world, it’s no longer just about being able to talk...

Words: 3611 - Pages: 15

Chinese Architecture 4 | 09.03.1800:17 Uhr Tomb Raider Soundtrack256 kbit/s 0 / 07.869 Hits VID P2P DDL 0 Kommentare | Disney JONAS – Die Serie