Telefonica Presentation and Financial Analysis
Telefonica
Index
Introduction……………………………………………………………………. 3
Company overview……………………………………………………………. 4
Company Markets and Performance……………………………………….......4
Stock Market…………………………………………………………………....4
Company Strategy………………………………………………………………5
Key performance Indicators…………………………………………………….5
Company Financial Ratios * Short-term Ratios………………………………………………………..7 * Activity Ratios…………………………………………………………..8 * Long-Term Ratios………………………………………………………10 * Profitability Ratios……………………………………………………...11
Company Trends Conclusion………………………………………………….12
Proposal of investment ………………………………………………………..13 * Discounted Payback…………………………………………………….14 * Payback…………………………………………………………………14 * NVP……………………………………………………………………..14 * PI………………………………………………………………………...15 * IRR………………………………………………………………………15
Conclusion……………………………………………………………………..16
Introduction
This paper work is made is made on the main criteria of the class of Strategic Business Finance, in order to apply topics taught as Financial Ratios, Investment’s Valuation and calculate Capital cost of a company.
The company than we will stress on is the well knows Spanish Telecommunication Company called Telefónica.
The paper work after the pretend financial analysis will make us understand the effects of than the global crisis had on a solid company as Telefónica between 2009 and 2011. And also the effects than an expansionist policy as telefónica has been making on the recent years can make on a company’s balance and financial statements.
Company overview
The company Telefonica was found in Madrid at 19 of April of 1924 whit the name of (translated) National Spanish Company of telecommunications (CTNE – Compañia Teléfonica Nacional de España). This was the first telecommunication company on Spain holding the monopoly per many years. It was owned by the government until 1997 when the decision to sell to the private sector was made and in January of 1999 they decide to change the
Index
Introduction……………………………………………………………………. 3
Company overview……………………………………………………………. 4
Company Markets and Performance……………………………………….......4
Stock Market…………………………………………………………………....4
Company Strategy………………………………………………………………5
Key performance Indicators…………………………………………………….5
Company Financial Ratios * Short-term Ratios………………………………………………………..7 * Activity Ratios…………………………………………………………..8 * Long-Term Ratios………………………………………………………10 * Profitability Ratios……………………………………………………...11
Company Trends Conclusion………………………………………………….12
Proposal of investment ………………………………………………………..13 * Discounted Payback…………………………………………………….14 * Payback…………………………………………………………………14 * NVP……………………………………………………………………..14 * PI………………………………………………………………………...15 * IRR………………………………………………………………………15
Conclusion……………………………………………………………………..16
Introduction
This paper work is made is made on the main criteria of the class of Strategic Business Finance, in order to apply topics taught as Financial Ratios, Investment’s Valuation and calculate Capital cost of a company.
The company than we will stress on is the well knows Spanish Telecommunication Company called Telefónica.
The paper work after the pretend financial analysis will make us understand the effects of than the global crisis had on a solid company as Telefónica between 2009 and 2011. And also the effects than an expansionist policy as telefónica has been making on the recent years can make on a company’s balance and financial statements.
Company overview
The company Telefonica was found in Madrid at 19 of April of 1924 whit the name of (translated) National Spanish Company of telecommunications (CTNE – Compañia Teléfonica Nacional de España). This was the first telecommunication company on Spain holding the monopoly per many years. It was owned by the government until 1997 when the decision to sell to the private sector was made and in January of 1999 they decide to change the