Tnt Company Report

4856 Words Jan 9th, 2008 20 Pages
Executive Summary
• TNT N.V. is one of four leading worldwide mail and express delivery companies with a 9% market share of the big four companies and a turnover of continuing business of €10.105 million in 2005 and profit after interest and taxes of €772 million.
• TNT N.V. decided in 2005 to dispose of its logistics division which accounted in 2005 for additional €3.542 million and a loss of €111 million.
• TNT N.V. 's profit, liquidity and efficiency are stable and around industry average but still leave room for improvement.
• TNT N.V. financial gearing is low compared to its competitors. The company could make better use of long-term debt opportunities.
• TNT N.V. developed strongly on the stock market in 2005 and outperformed
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The Company 's freight management business provides air and sea freight transportation by acquiring cargo space from airline and shipping firms. (Reuters.com, 2007) 3 The Literature Search
Most of the financial information on TNT can be found on the company 's website. The financial newspapers, particularly "De Financiële Telegraaf" were also very useful. The international website of Reuters is very useful for investors. The textbook ‘Accounting and Finance for non-specialists ' (Atrill, P. and McLaney, E., 2006) is a good guidance for calculating ratios for the financial analysis. The annual reports of the main competitors were used for a good comparison of the financial influence, market share and share price performance. A more detailed bibliography is outlined in appendix A. 4 The Data and its Analysis
To give a true and fair view of the financial strengths and weaknesses of TNT, the annual report will be judged on the basis of five aspects. Ratio analysis on profitability, efficiency, liquidity, financial gearing and the investment grade of the company will be used. The analysis comprises a comparison of TNT 's development from 2004 to 2005 as well as its relative performance against its competitors. In this analysis, except where stated otherwise, a forward-looking approach is used by excluding the logistics division.
The ratios can be found in paragraph 4.1 to 4.5. In paragraph 4.6 an overview will be given of TNT 's position on turnover

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