Analysis Of Telstra Corporation Limited ( Tls )

Debt to Equity ℎℎ ′ 9,771+1,885 Dividend Payout Inventory Turnover = 0.069 Working backwards from the income tax expense, we estimate income tax rate to be 34%. NOPAT is then Operating profit taxes, or 3,137*(1-0.34) = 0.319 Average

Telstra is Australia’s largest and most efficient telecommunications company, which provides one of the best-known brands in the country. They offer a full range of services and compete in all areas of telecommunications both domestically and internationally. Telstra’s vision is to enhance its position as the leading full service telecommunications and information Service Company in Australia as well as to expand its presence internationally. (Telstra Website, 2008)

Because we have not been notified of any substantial changes within the company’s financing agenda or asset acquisition goals, we find it safe to assume that Telus will continue to use the same financing weights in the near future. Another thing that we believe Telus should consider is avoiding the issuance of Preferred Stock in the future. Although this type of stock is less restricted, it can considerably affect the company’s overall cost of capital based on a higher after-tax cost and given that this type of stock is not tax

In this case, the Profit Before Tax (PBT) would have been higher by $200,000. Therefore, they would have paid 28% x $200,000 = $56,000 in taxes. The Net Income (NI) would have been increased by $144,000.

2.0 SWOT Analysis2.1 Strengths•Telstra is one of the biggest brands in Australia and dominates the leading business position of telecommunications and information services in this country.

Telstra have dominated the telecommunications market for over a century by providing integrated services with vast geographical coverage. Telstra’s main areas of expertise are providing telephone, mobile, internet services and its 3G network to households and businesses across Australia with 9.2 million fixed line services and 9.7 million mobile services. Telstra have strived to be number one in their industry and achieve ultimate customer satisfaction (Telstra website 2009).

The telecommunications coverage in rural and regional areas in Australia has monopolistic characteristics. Telstra has a competitive advantage over Optus with 99.3% coverage of the population compared to Optus with a 98.5%, this is equivalent to an estimated 192,000 more potential customers. Although Telstra has this competitive advantage they claim that the revenue received from their rural base stations does not cover the cost of development and maintenance.3.

8. Clarence Cazalot Jr., president and chief executive officer of Marathon Oil Corp., had the eighth highest CEO compensation in 2011. Cazalot has been CEO of Marathon, based in Houston, since 2002. Net income for Marathon dropped to $549 million in the fourth quarter as reported in Feb. 2012 from $706 million in the previous year. (Tim Boyle/Bloomberg/Getty Images)

To start, the centralised/vertical structure of Telstra is designed to accomplish the targeted goal. The organizations produce the products which travel through manufacturers to wholesalers then to customers. Also company follow the Telstra Business Principles which is the key component of corporate governance framwork. This framework helps to build the transparency and accountability for the long term performance and sustainability. Moreover, the CEOs as the board is responsible for the improvement and execution of policy and complete supervision and performance of the company. Then the middle mangers (Controller/director) follow the rules and policies set by CEO and control the first line mangers. Besides, they keep

According to the chairman’s statement in the 2015 annual report of Telstra: Telstra is committed to showing that they care in the way they respond to important economic, social and environmental challenges. They are also committed to minimizing
the environmental impacts and to working with the customers to achieve better environmental outcomes. This year, total carbon emissions decreased
by 1.3 per cent despite data loads on
our network increasing by 36 per cent. This meant our carbon emissions intensity reduced by 27 per cent (Chairman’s Telstra Annual Report, 2015, pp. 07). At Telstra, they believe that understanding and integrating stakeholder values and expectations into organizational decision making is important to help ensure the long-term

(Note: retained earnings information is irrelevant here) Part b. Total market value = debt + pref. equity + Common equity = 1,147,200 + 1,250,000 + 2,500,000 = $4,897,200

On 1 February 1992, it was merged with Australia's domestic telecommunications carrier, the Australian Telecommunications Corporation Limited ("Telecom"), to create the Australian and Overseas Telecommunications Corporation Limited (AOTC). The new organisation underwent a corporate identity review and was subsequently renamed Telstra Corporation Limited ("Telstra") for international business in 1993 and domestic business in

This report explores the issue of the pay that top executives make, and the reasons why they do. It also suggests improvements that can be made to make the system better. High Pay Seems Small When Compared To Company Profits Many companies pull in profits that are extremely high. When an employee of such a companies salary is compared to the amount of profit that the company earns, it starts to seem reasonable. It only makes sense that if the employee is directly responsible for the success of their company, then they deserve to get their payback. It seems ironic, but many salaries even look small once compared with a companies profits. Top Executives Are Under A Lot Of Pressure Being the CEO of a

Telstra is Australia’s largest and most efficient telecommunications company, which provides one of the best-known brands in the country. They offer a full range of services and compete in all areas of telecommunications both domestically and internationally. Telstra’s vision is to enhance its position as the leading full service telecommunications and information Service Company in Australia as well as to expand its presence internationally. (Telstra Website, 2008)

Table 1 shows that in the past three years, the top paid directors’ remuneration are mainly composed of fees and salaries. The retirement benefits scheme was available for a few executive directors but only formed a small part of their total emoluments. Unlike many other companies at present, there are no executive pay schemes connected with company’s share price. As there is no goal-based bonuses for the senior managers, the incentive for executives to perform better may be absent. The company’s net asset continued to decrease since 2010 and in 2014 it reached the lowest level. However, the 2014 pay level for top executives is similar to 2013, or even higher. In 2015, the company’s financial condition gets better and a huge increase in salary was seen for the same CEO and Company Secretary (GEM 2015). It seems that senior managers’ payment soars with better corporate performance but does not fall correspondingly when shareholder wealth are injured, which indicates that the remuneration scheme stands more for the executive’s benefits rather than the shareholders’.