Analysis Of Telstra's Financial Figures From The Previous Three Years Annual Reports

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

1.0 IntroductionTelstra Corporation is a telecommunications and information services company. It provides a range of services including fixed line services, Internet access, and business services. Telstra is the market leader in the telecommunication industry in Australia, with one of the most prominent brand names. However, its products and operating services face an increasing threat from competitors. An analysis with recommendations of Telstra marketing is necessary in order to improve its performance.

The customer turnover rate for Telus is quite low. This is because it has managed to increase its subscribers in TV, wireless and internet (Donnelly, 2016). Consequently, Telus is expected to grow because of these factors. Furthermore, the aspect of high dividends makes Telus an attractive investment. On December 11, 2015 Telus’ quarterly dividend was $0.44/share (Telus Investor Information, 2015), which provides a safe, stable cash flow.

As of January 20, 2017 the current market quote for Comcast Corp is at 73.57 per the NASDAQ exchange. Over the past 10 years the market for Comcast Corp grew significantly. The 31st of January in 2007 the stock market value was at a low 29.57. So, what trends and or events made the stock market activity change so significantly in the last 10 years? Analysts that are researching this and keeping track of the stock market activity are stating as of January 10th of 2017 the shareholder returns and stock trends were trading at $70.92. Comcast’s stock was trading at 6.4% above its normal 20-day and 50-day moving averages of around $65. Comcast has been maintaining a steady dividend payout ratio of 30.0%-35.0%. Since 1963, Comcast has developed,

When combining the figures for ROE, ROA and the DuPont analysis it appears that the company is using leverage favourably. ROE is greater than ROA and assets are greater than equity. This is a positive sign for shareholders as it suggests a good investment return in a company that is managing its shareholder equity well (Evans & McDowell, 2009).

Telstra shares have shown itself to have a generally upward trend. While the share price is veering to its highest. Telstra could possibly continue on this rise. With this in mind one of Australia’s high profile stockbrokers has decided to upgrade the price target of $6.40 which has been met already to $7. With these evidence purchasing shares in Telstra could be a high risk that could be worth taking.

This shows that the company is looking to benefit their stockholders, but their debt is the highest of three. Although their stockholder equity is the lowest, the biggest thing to consider is that the earning per share is substantially higher than the other two companies by more than half. This will most likely make it the riskiest investment, but will the most profitable.

An international communications technology company. The company was formerly known as Bell Atlantic Corporation and changed its name in June 2000. Operational in approximately 150 countries, and employs roughly 178,000 people. A fortune 500 company with hundreds of data centers, Verizon has 1,700 retail locations worldwide. In 2014, they attained Vodafone’s 45 percent interest in Verizon Wireless for $130 billion, turning them into a solely-owned entity. Their main competitors are AT&T and T-Mobile. Global industry revenues in 2016 reached $1.05 trillion, a figure that is projected to grow to $1.14 trillion by 2020, according to GSMA Intelligence.

Return on Total Assets was 4.43% which is below five percent. That indicates that the company is not accurately converting its assets into profit. The total for Return on Stockholders’ Equity was 8.89%, however financial analysts prefer ROE to range between 15-20 %. The company’s low ROE indicates that the company is not generating profit with new investments. Lastly, Debt-to-Equity ratio for the company was 1.01 which indicates that investors and creditors are equally sharing assets. In the view of creditors, they see a high ratio as a risk factor because it can indicate that investors are not investing due to the company’s overall performance. The totals of these three ratios demonstrate that the company’s financial state is not as healthy as it should be.

After reviewing Telus’ liquidity ratios its clear from their current ratio that they will be able to meet their short term obligations which is a major key in moving forward as they have just acquired a lot of debt from capital expenditures. However, there is some room for concern as their cash ratio is very low at 0.009 which hints that the company is having some cashflow problems, if the problem is not dealt with major problems can arise from this. Also their financial leverage ratio is higher than all their competitors indicating that they have the most debt out of all of the companies, with cashflow problems and the amount of debt they have just borrowed this raises more concerns if Telus would be able to repay its debt. In addition, their capital investments to upgrade its network infrastructure to remain competitive Telus also had high debt to EBITDA ratio of 3.4 over its competitors by almost 2.0 shows red flags that default warnings may be a concern in the coming future. In comparison to other companies in the industry, Telus’ ROE is 6.5% which is significantly

Alliance Pty Ltd requested Tafey Financial Services to analyse the financial performance of certain public companies listed on the Australian Stock Exchange (ASX) with a view to invest in one of these companies. The details of the scope of work are contained in the signed letter of engagement.

The BHP Billiton is second biggest mining company in the world based on income. The Australian mining company earned a massive $68 billion dollars in sales in year 2013 from selling products such as iron ore, cooper, aluminium, coal, silver, nickel, uranium and manganese according to Spence (2014). Broken Hill Proprietary’s history began in a mine in Broken Hill, Australia. BHP was founded in year of 1885. The company participated in variety of activities such as finding, developing, producing and marketing of iron ore, copper and a range of other natural resources. According to BHP Billiton Chronology (n.d.), Billiton was a mining company and its history found back to year of 1860, when the documents of association were accepted by a meeting of investors in the Groot Keizerhof hotel in The Hague, which is in Holland. In year 2001, Broken Hill Proprietary and Billiton Company have decided to merge into BHP Billiton Company which had positive reactions from certain individuals such as then Australian Prime Minister John Howard who believed this merging of companies is very beneficial for Australia (O’Brien, 2001). BHP Billiton is a Dual Listed Company (DLC) which involves BHP Billiton Public limited company and BHP Billiton Limited. BHP Billiton was established through the Dual Listed Company fusion of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Public limited company), which was finished on June 2001. The head office of BHP Billiton,

This report analyses the financial performance of BHP Billiton, a diversified natural resources group, for a potential investor. It uses the financial ratios to analyse the company’s profitability, liquidity, efficiency and investment potential.

Telstra has a long history in Australia, starting together with Australia Post as an administration division, the Postmaster-General 's Department. Telstra is now completely privatized and has been going through a change to become more client oriented under its late CEO, David Thodey. New CEO Andy Penn is required to expand the attention on development in universal markets. The central government 's National Broadband Network (NBN) is making changes in the business and will see the organization logically offer its copper and HFC systems to NBN Co.