Ratio Analysis Of Airtel

rising ratio is desirable, while the reverse is also true. Comparing Company G’s Rate of Return

The company currently has a current ratio of 14:1. This is bad because the company is not managing its assets properly.

This gross margin has seen an average decrease of 0.72% since 2011, spiking at 60.03% in 2013. Its operating margin of 14.9% held second to its peers, as Verizon led with 21.5%, followed by T-Mobile with 10.2% and Sprint with 4.0%. Contrasting gross margin, the operating margin of AT&T has increased by an average of 1.52% in the last five years, spiking in 2013 at 23.67. AT&T also played second fiddle to Verizon in terms of net profit margin as AT&T’s 7.9% margin fell short of Verizon’s 10.4%, though trounced T-Mobile (3.9%) and Sprint (-4.5%). Net profit margin also saw an average increase since 2011, jumping 0.96% and spiking at 14.17% in 2013. In the last five years, sales increased by $9.28 billion on average, a favorable growth. With this rise revenues came a rise in costs in the same timeframe as the company incurred an average cost increase of $4.41

This ratio is used to assess a company’s financial performance by revealing the money left over from the revenues. Gross Profit Margin also serves as the source for paying additional expenses and future savings.

The profitability ratio is a class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time (Investopedia, 2014). It is used to determine how profitable a company is over a period of time, generally one year. The profitability ratio for Grace Kennedy group is shown below for 2009 through to 2013.

This ratio outlines a company’s profits as they relate to their sales. This ratio will reflect changes in gross margin but also account for other expenses the company incurs. This ratio tends to be more consistent across multiple periods. Should there a significant swing between periods, it may trigger the need for additional reviews and

In addition, to that it is important to notice that their total expense represents 87% of their revenue in 2013 (See Exhibit 1). Moreover, if we look at the profit margin, it highlights the fact that the company is generating a low amount of profit compare to the amount of revenue. It is important to notice that it could reveal that the company profitability is not very

Operating profit margin figures in the table above show the return from net sales[13]. However profit margin ratios are high enough for the 3 years, there is a fall from 12.86% to 11.26% during 2011-12. Sales revenue increases with a higher rate than gross profit so there is a poor

This paper aims to examine the financial state of the AT&T Company. Through the analysis of comprehensive and consolidated financial statements, it appears that AT&T is in a ___ financial position. This is also supported through investigating the trends and variations in the financial statements and looking at a competitive and economic analysis. A SWOT analysis was also conducted to focus on the internal and external characteristics of AT&T and an industry analysis was conducted to assess the market share and how AT&T is performing relative to its competition.

Profitability Ratios: Reflect the ability of the organization to operate with an excess of operating revenue over operating expense.

A higher this ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues. Amazon performing better in this metrics.

Financial Ratios: What They MeanIn assessing the significance of various financial data, managers often engage in ratio analysis, the process of determining and evaluating financial ratios. A financial ratio is a relationship that indicates something about a company's activities, such as the ratio between the company's current assets and current liabilities or between its accounts receivable and its annual sales. The basic source for these ratios is the company's financial statements that contain figures on assets, liabilities, profits, and losses. Ratios are only meaningful when compared with other information.

Airtel’s strategy of outsourcing with Nokia Siemens and Ericson included buildup, maintenance and overhauling of network telecom equipment’s. Airtel’s contract was a two pronged outsourcing structure to its vendors. The vendors will provide network capacity requirements as mentioned in the agreement. Payment models were based on the customer utilization of the capacity, hence paying for only what is used. Ownership of assets rests with Airtel, maintenance responsibility with the vendors. Techniques were taken to check quality parameters. The contract was for 3 years and renewable under mutual consent. Airtel followed Dollar Per Erlang model which meant pay only for the Traffic that come out of the tower. Airtel’s contract with IBM was for 10 years and had complete, end-to-end management and wide-ranging services for supplying,

As professionals, we must constantly analyze our position. When we look at the company, we must evaluate the performance and make those comparisons of historical figures in-house and with the industry competitors. This analysis must not be taken lightly with easily attainable numbers such as sales, profits or total assets. As the adage goes, we need to “read between the lines” of the performance data looking past, the seeming inconsequential figures and develop them into figures that are accessible and comprehensible. Comparative analysis assist us to identify and quantify the strengths and weaknesses, take a decisive look at the financial position, understand the risk and develop a course of action if required. As with most things, ratio

This ratio is expressed in percentage. If the ratio is high it shows that the company is utilizing its assets in better way to generate its income. If the ratio is less it shows that the company is in difficult position to meet its debt. Formula to find the return on assets ratio is: - return on assets = net profit / total assets. Whereas net profit means the amount arriving after deducting all the expenses which includes taxes also. In addition to this he also explains about the profit margin ratio (PMR). PMR is the ratio which expresses the relationship between profit and sales. Formula used to find the PMR is: - Profit margin ratio = net profit/net