Financial Analysis of Vodafone and Comparison with Deutsche Telekom

FINANCIAL
ANALYSIS

FINANCIAL ANALYSIS 1
Contents
Introduction............................................................................................................... 2
Overview of the organisation.......................................................................................... 2
Task 1...................................................................................................................... 3
Task 2: Financial Analysis............................................................................................. 6
Compare to Deutsche Telekom.................................................................................... 6
Reasons of differences............................................................................................... 7
Impact of competitors............................................................................................... 8
Conclusion................................................................................................................ 9
Bibliography............................................................................................................ 11

FINANCIAL ANALYSIS 2
Introduction
Financial analysis is the process of evaluating the financial data to assess the performance of
an organisation. The position of the company is also analysed in order to expand the business
or to beat the competitors. There are different ways in which the company analyse its
financial performance such as vertical, leverage, growth, valuation, profitability, liquidity, etc
(CFI, 2019). The process helps the company to evaluate the growth rates in order to extend
the business in the different countries.
The main aim of this report is to understand the evaluation of financial ratio. In this report,
Vodafone has been taken into consideration in order to analyse the financial position of the
company. In this report, the financial ratio has been evaluated of the years of 2017 and 2016.
Deutsche Telekom has been taken into consideration in order to compare the financial
performance of Vodafone in the market.
Overview of the organisation
Vodafone Group plc is a British multinational company in England. The company operates in
the region of Asia, Europe, Africa and Oceania. The company have its own networks in the
different 25 countries and it also has the partner networks in 47 further countries. As the
company is operates in the different countries and have large business that is why; it is
required to evaluate the financial performance (Vodafone, 2018a). The company also have
the large number of competitors in the market. It is requires for the company to evaluate the
performance of Deutsche Telekom in order to evaluate the high threat of competition.
Deutsche Telekom is also a telecommunication company in German. It is one of the largest
telecommunication providers in the country of Europe (Deutsche Telekom, 2018). Deutsche