Accounting Report Analysis
Corporate Financial Report Analysis
Telstra Corporation Ltd.
Team Members:
Chak Wai Ting 2084619
Christopher Nichol 7383479
Jono Gelbart 9697926
Shehani Lokeswara 2051060
INDEX
Corporate Financial Report Analysis 1
Executive summary 3
Introduction 4
Business Background 4
Trend Analysis - Transition from 2011 5
Ratio Analysis 6
Executive summary
The purpose of this report is to evaluate the financial performance of Telstra Corporation Limited from a trend analysis and ratio analysis composed of profitability, efficiency, liquidity and capital structure ratios.
Overall, Telstra is an influential and leading telecom company in Australia and experiencing a middle-term transition in products and infrastructure period to better cope market needs and development of technology. Overall it realized a moderate business growth and the effects of investment for transition are now apparent. Low economic environment also slow down Telstra’s growth, however, trend analysis showed unfavorable changes in net profit, current liability and equity provisions over time. And the company showed improvement spaces in profitability and liquidity analysis- insufficient profit growth and a high liability rate. Efficiency and capital structures ratios do not reflect other problems. Several suggestions, including cost control in financial fee/overheads/account receivable, enhance sales ability and customer loyalty and unproductive asset disposal are listed at the end of this report.
Introduction
Telstra Corporation Limited (ASX:TLS, listed in 1997, “the business” in below context) is one of the Australia’s leading telecommunications and information services companies. Below report analyzes its financial data from 2009 to 2012 from trend and ratio analysis and gives recommendation at the end, aiming to provide useful perspectives for investor’s decision making.
Business Background
Telstra’s leading role and influence were reflected by
Telstra Corporation Ltd.
Team Members:
Chak Wai Ting 2084619
Christopher Nichol 7383479
Jono Gelbart 9697926
Shehani Lokeswara 2051060
INDEX
Corporate Financial Report Analysis 1
Executive summary 3
Introduction 4
Business Background 4
Trend Analysis - Transition from 2011 5
Ratio Analysis 6
Executive summary
The purpose of this report is to evaluate the financial performance of Telstra Corporation Limited from a trend analysis and ratio analysis composed of profitability, efficiency, liquidity and capital structure ratios.
Overall, Telstra is an influential and leading telecom company in Australia and experiencing a middle-term transition in products and infrastructure period to better cope market needs and development of technology. Overall it realized a moderate business growth and the effects of investment for transition are now apparent. Low economic environment also slow down Telstra’s growth, however, trend analysis showed unfavorable changes in net profit, current liability and equity provisions over time. And the company showed improvement spaces in profitability and liquidity analysis- insufficient profit growth and a high liability rate. Efficiency and capital structures ratios do not reflect other problems. Several suggestions, including cost control in financial fee/overheads/account receivable, enhance sales ability and customer loyalty and unproductive asset disposal are listed at the end of this report.
Introduction
Telstra Corporation Limited (ASX:TLS, listed in 1997, “the business” in below context) is one of the Australia’s leading telecommunications and information services companies. Below report analyzes its financial data from 2009 to 2012 from trend and ratio analysis and gives recommendation at the end, aiming to provide useful perspectives for investor’s decision making.
Business Background
Telstra’s leading role and influence were reflected by