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Ratio Analysis

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Liquidity Ratios 2012 2011 Current Ratio 20,025/24,025=0.83 17,003/27,075=0.63

Quick Ratio (7,138+10,744)/24,025=0.74 (6,252+9,259)/27,075=0.57

Activity Ratios Receivable Turnover 46,417/((10,744+9,259)/2)=4.6 45,884/((9,259+8,784)/2)=5.1

Inventory Turnover 31,546/((486+537)/2)=61.7 30,814/((537+433)/2)=63.5

Profitability Ratios Rate of Return on Assets 7,003/((139,576+151,220)/2)=4.8% 7,870/((151,220+156,985)/2)=5.1%

Rate of Return on (7,003-56)/((78,202+87,561)/2)=8.4% (7,870-58)/((87,561+90,810)/2)=8.8%
Common Stock Equity

Coverage Ratios Debt to Assets (24,025+37,349)/139,576=0.44 (27,075+36,584)/151,220=0.42

Times Interest Earned** (9,549-25)/25=381 (9,498-138)/138=67.8 …show more content…

The pace of decline nearly doubled from the previous quarter.
Vodafone has been reeling primarily because its growing mobile businesses in countries such as India and Turkey have failed to offset exposure to challenged European markets that comprise the bulk of its empire.
More than two thirds of Vodafone 's service revenue comes from Europe, where a drawn-out decline has been led by hemorrhaging businesses in Italy, Spain, Greece and Portugal.
Service revenue for the quarter in Vodafone 's Southern Europe region—which includes those four countries, as well as Albania and Malta—dropped to £2.34 billion, a 17% decline from the prior year.
Chief Financial Officer Andy Halford declined to say whether Vodafone would log another write-down on its businesses in hard-hit European regions. "In markets that have been on a progressive downward slide, it is not easy to call the bottom on all of those," he said.
The company announced a £5.9 billion write down on the value of its Spanish and Italian businesses in November because of challenging market conditions. The move came after Vodafone booked £10.2 billion in impairment charges in the 2011 and 2012 fiscal years because of struggling European markets.
"We don 't see a dramatic change in economic conditions in Europe in the coming quarters, so we expect headwinds," Mr. Colao said.
Vodafone also struggled in European markets with better macroeconomic

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