FINANCIAL STATEMENT ANALYSIS OF VODAFONE

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FINANCIAL STATEMENT ANALYSIS OF VODAFONE

Transcript of FINANCIAL STATEMENT ANALYSIS OF VODAFONE

FINANCIAL STATEMENT

ANALYSIS OF VODAFONE

Table of Contents

Introduction: Vodafone LLC .......................................................................................................................... 2

Environment analysis of Vodafone ............................................................................................................... 2

Innovative Key Performance Indicators of Vodafone ............................................................................... 2

Sustainable Business Approach of Vodafone............................................................................................ 2

Risk Management Approach of the company .......................................................................................... 3

Corporate Social Responsibility in Vodafone ............................................................................................ 3

Financial statement analysis of the company ............................................................................................... 3

Cash flow as a financial performance indicator ........................................................................................ 3

Major activities of cash flow statement ................................................................................................... 3

Cash flow statement ratio analysis as a financial performance indicator ................................................ 4

Cash adequacy ratio .............................................................................................................................. 4

Cash flow ratio ...................................................................................................................................... 4

Cash flow to sales ratio ......................................................................................................................... 4

Ratio Analysis as Financial Performance Indicator ................................................................................... 4

Profitability Ratio .................................................................................................................................. 5

Gross Profit Margin ............................................................................................................................... 5

Net profit margin .................................................................................................................................. 5

Liquidity Ratio ....................................................................................................................................... 5

Current Ratio ......................................................................................................................................... 5

Quick Ratio ............................................................................................................................................ 6

Turn Over Ratio ..................................................................................................................................... 6

Debtors Turnover Ratio ......................................................................................................................... 6

Asset Turnover Ratio ............................................................................................................................. 7

Return on Investment Ratio .................................................................................................................. 7

Return on Assets Ratio – ROA ............................................................................................................... 7

Conclusion: ................................................................................................................................................... 8

References .................................................................................................................................................... 9

Appendix ....................................................................................................................................................... 9

Introduction: Vodafone LLC Vodafone Group Plc is world's one of most promising driving cell phone administrator, gloating

more than 165 million endorsers and yearly offers of more than £31.5 billion. It is a big name

under name in the sector of telecommunication. It give mainly facilitates along with calls like

music, video, high speed internet etc .(Vodafone, 2015). As a telecommunication company,

Vodafone’s objective is to improving constructive social influence of mobile by reducing

illiteracy which is novel work. Other than that the company is giving more attention towards the

entrepreneurs by encouraging them and involving them in different segments. All this proves that

the company is doing enough for fulfilling their corporate social responsibility (Reference for

business, 2015). The company is giving more importance for increasing the using of smartphone

as the strategy of the company is if using of smartphone will increase then customer will buy

more data. The profit will be increased. The company is working more on increasing its mobile

network performance as it will open the door to experiencing more hassle free internet. In both

cases the company was aimed to using more data but in a customer centric way. That’s why it is

really good KPI.

Environment analysis of Vodafone An organizational strategy is defined as the summation of the total actions of the organization

which planned to implement for achieving long-term objectives of the organization. All these pre

planned arrangements together help to design framework of the establishment’s tactical

strategies. These strategic plans minimum take one year for requiring involvement from all levels

of the company. The key factors of organisational strategies for surviving in this environment of

competitive advantages are performance indicators, sustaining approaches, CSR strategies, risk

management approaches etc. (Vodafone, 2016).

Innovative Key Performance Indicators of Vodafone Innovation is become the key for sustaining in this competitive world. The company understood

it very well that’s why this company always win the battle with its pioneering customer

orientated strategies. Its red plan was become successful to generate 58% revenue from Europe

though the region was under macroeconomic pressure. That’s why it is one of the best KPI of the

company. The company is aiming for harmonization its operation of all sectors that’s why it is

giving more importance in standardizing all system. For fulfilling this company is heading for

integrating its billing process, customer relationship management process, company’s culture etc.

All these w helped to simplifying all the process and efficiency of the company increased.

Sustainable Business Approach of Vodafone The company gave emphasize on data protection by enforcing law as their main goal is to secure

customer’s privacy by securing information of the consumers. This is an important step for the

company which will help to sustaining in the business. The company had taken some steps to

recover the wellbeing of the society by helping the women, being supportive to all those

sufferers of domestic violence which administrate social welfare. Other than that the company

came up with the idea of instant education by launching instant network school which will give

access online contents of education via tablets (Vodafone, 2015).