Financial Analysis of JB HI FI and Telstra Corporation

This report evaluates the financial performance of JB HI FI and Telstra Corporation through ratio analysis, stock price analysis, beta value and cost of equity, dividend policies and recommendation letter.

Running Head: Finance for business – Masters
1
Project Report: Finance for business – Masters

Finance for business – Masters 2
Contents
Introduction.......................................................................................................................3
1.Company descriptions...................................................................................................3
a.Telstra limited............................................................................................................3
b.JB HI FI.....................................................................................................................3
2.Performance ratio analysis.............................................................................................3
3.Analysis of stock price.................................................................................................11
4.Analysis on changes into stock price...........................................................................12
5.Beta value and cost of equity.......................................................................................13
6.Dividend policies.........................................................................................................14
7.Recommendation letter................................................................................................15
References.......................................................................................................................17
Appendix.........................................................................................................................18

Finance for business – Masters 3
Introduction:
Financial analysis is a process which explains the performance of a business on the
basis of analysis on the financial statements of the company. Financial analysis process takes
the concern of financial statements and other financial activities of the business to identify the
overall position of the business. It evaluates the position through technical analysis and the
fundamental analysis to create a better base for the investors to make decision about the
investment into the company (Higgins, 2012). Ratio analysis, cost of equity, weighted
average cost of capital, horizontal analysis, vertical analysis etc are few evaluation methods
to measure the financial performance of a company. In the report, financial performance of
JB HI FI and Telstra Corporation has been evaluated to identify the best company for the
purpose of the investment.
1. Company descriptions:
a. Telstra limited:
Telstra limited is a telecommunication company in the Australian market. It offers the
telecommunication solution and the services to the business people and the Australian
individuals. The main services of the business are network solution which also includes the
global IP private networks, global Ethernets, international private line, security solution,
managed store, customer control centre. It is the largest company in the telecommunication
sector of the business (Bloomberg, 2018). It has been founded 43 years before at 1st July
1975. Total number of employees of the company is 32000 and 150 subsidiaries are running
by the company to run the business.
b. JB HI FI:
JB HI FI is an Australian company which deals in the consumer goods. The company
specializes in electronic products, blu rays, video games, CDs, DVDs, mobile phones,
electronic home appliances etc. It has been founded in 1974. The company is operating its
services through 303 stores. The company is operating its operations and activities under the
retail industry. The company has expanded its business in New Zealand market as well. The
main competitive advantage of the business is its products and various outlets which make it
convenient for the customers to reach over the store and purchase the products from the
company.
2. Performance ratio analysis:

Finance for business – Masters 4
Performance ratio analysis is a financial evaluation method which is used by the
companies to measure the operating and financial performance of a business. It measures the
liquidity, profitability, solvency, efficiency and capital structure level of the business to
identify the position of the business. This evaluation process makes a base for the investors to
identify the investment level of the business and the risk position to make decision about the
investment into the company (Gibson, 2011). In the report, performance ratios of JB HI FI
and Telstra have been calculated to measure the overall performance of the business. The
performance ratios of the business are as follows:
Profitability ratios:
Profitability ratios depict the profit generation ability of a business. It measures the
total profit of the business through assets, equity, sales revenue etc to identify that how much
profit has been generated by the business through the available resources.
Figure 1: Profitability Ratios
Return on equity measures the net profit of the business against the available equity of
the business. It explains the profit generation capability of the business. ROE of JB HI FI
explain that the profitability level of the business has been lower from last 3 years in 2017.
The current ROE of the business is 20.2%. On the other hand, the Telstra Corp’s ROE
explain about the reduced level as well. The changes in both the companies have occurred
due to the external factors.
Rate of return on
ordinary equity JB HI FI
Net profit / 136,511 152,181 172,400

Finance for business – Masters 5
Total equity 343,479 404,702 853,500
Answer: 39.7% 37.6% 20.2%
Rate of return
on ordinary
equity
Telstra Corporation
Net profit / 4,231,000 5,780,000 3,891,000
Total equity 14,103,000 15,871,000 14,541,000
Answer: 30.0% 36.4% 26.8%
Return on assets measures the net profit of the business against the available resources
of the business. It explains the profit generation capability of the business. ROA of JB HI FI
has been reduced in 2017 because of lower profits from last 3 years. The higher expenses
have led to lower profitability (Morningstar, 2018). On the other hand, the Telstra Corp’s
ROA has also been reduced. The changes in both the companies are quite similar.
Return on Total assets JB HI FI
Net profit / 136,511 152,181 172,400
Total Assets 895,013 992,381 2,452,300
Answer: % 15.25% 15.33% 7.03%
Return on Total
assets
Telstra Corp
Net profit / 4,231,000 5,780,000 3,891,000
Total Assets 40,445,000 43,286,000 42,133,000
Answer: % 10.46% 13.35% 9.24%
Further, the gross profit margin and net profit margin of both the companies have
been calculated and it has been measured that the gross profit of the business is similar in last
3 years while the level of the net profit has been fluctuated. The current net profit level of
JBH is lowest in all the three years. On the other hand, the gross profit and net profit level of
TLS brief reduction in both the levels. It led to the conclusion, that both the organization has
faced the lower profitability position in current year. The main reasons behind it are changes
in the economical performance.

Finance for business – Masters 6
Gross profit margin
JB HI FI
Gross profit / 798253 865408 1230500
Sales Revenue 3652136 3954467 5628000
Answer: 21.9% 21.9% 21.9%
Net profit margin
Net profit / 136,511 152,181 172,400
Sales Revenue % 3,652,136 3,954,467 5,628,000
Answer: 3.74% 3.85% 3.06%
Gross profit
margin Telstra Corporation
Gross profit / 18975000 18587000 14954000
Sales Revenue 25845000 25834000 25912000
Answer: 73.4% 71.9% 57.7%
Net profit
margin
Net profit / 4,231,000 5,780,000 3,891,000
Sales Revenue % 25,845,000 25,834,000 25,912,000
Answer: 16.37% 22.37% 15.02%
(Morningstar, 2018)
Liquidity ratios:
Liquidity ratios depict the ability of a business to manage all the short term debt
through the available short term assets of the business. It measures the total debt payment
position of the business through measuring the level of current assets and current liabilities of
the business.

Finance for business – Masters 7
Figure 2: Liquidity ratios
Current ratio measures the current assets of the business against the current liabilities
of the business. It explains the short term debt capability of the business. Current assets of JB
HI FI explain that the current liquidity level of the business has been lower from last 3 years
in 2017. The current liquidity ratio of the business is 0.35 in 2017 (Morningstar, 2018). On
the other hand, the Telstra current liquidity ratio explains about the reduction level as well.
The changes in both the companies have occurred due to lower current assets than current
liabilities.
JB HI FI
Liquidity Ratios 2015 2016 2017
Current Ratio
Current Assets / 616,898 702,518 1,170,700
Current liabilities 380,336 446,833 885,800
Answer: 1.62 1.57 1.32
Current Ratio Telstra Corp
Current Assets / 6,970,000 9,340,000 7,862,000
Current liabilities 8,129,000 9,188,000 9,159,000
Answer: 0.86 1.02 0.86

Finance for business – Masters 8
Further, quick ratio measures the quick assets which could instantly convert into cash
to the current liabilities of the company. It explains the liquidity risk level of the business.
Quick ratio of JB HI FI has been similar in all the three years. On the other hand, the Telstra
Corp’s ROA has been reduced. The evaluation on both the companies express that the
liquidity position of JBH is better. The risk level is lower in JBH.
JB HI FI
Quick ratio
Current Assets -
Inventory / 138,027 156,081 310,800
Current Liabilities 380,336 446,833 885,800
Answer: 0.36 0.35 0.35
Telstra
Quick ratio
Current Assets -
Inventory / 6,479,000 8,783,000 6,969,000
Current Liabilities 8,129,000 9,188,000 9,159,000
Answer: 0.80 0.96 0.76
Capital structure ratios:
Capital structure ratios depict the capital management ability of a business. It
measures the total assets, equity, debt, liabilities etc to identify that how the capital level has
been managed by the business.
Figure 3: Capital structure ratios

Finance for business – Masters 9
The debt to assets ratios measures the total debt against the total assets to identify the
performance level of the business. The ratio of JBH express the company has improved the
level through reducing the debt level against the assets of the business. In case of TLS, the
level has also been improved because of lower assets level.
JB HI FI
Capital Structure ratio 2015 2016 2017
Debt to asset ratio
Total debt 171,198 140,846 713,000
Total assets 895,013 992,381 2,452,300
Answer: 0.191 0.142 0.291
Telstra
Capital Structure
ratio 2015 2016 2017
Debt to asset ratio
Total debt 18,213,000 18,227,000 18,433,000
Total assets 40,445,000 43,286,000 42,133,000
Answer: 0.450 0.421 0.437
The interest coverage ratio further explains about the ability of the business to repay
the interest amount. On the basis of the evaluation, the performance of JBH is negative
because of negative profits while the performance of TLS is better (Morningstar, 2018).
Further, the gearing ratio has been calculated and it has been identified that the gearing
position of TLS is better because of the management of optimal capital ratio.
JB HI FI
Capital Structure ratio 2015 2016 2017
Interest cover ratio
EBIT /
-
302,309
-
322,029 -485,600
Interest expenses 5,927 3,857 10,700
Answer:
-
51.005
-
83.492 -45.383

Finance for business – Masters 10
Gearing ratio
Long term liabilities / 171,198 140,846 713,000
Capital employed 514,677 545,548 1,566,500
Answer:
0.33
3
0.25
8 0.455
Telstra
Capital Structure
ratio 2015 2016 2017
Interest cover ratio
EBIT / 7,729,000 7,110,000 2,067,000
Interest expenses 846,000 796,000 729,000
Answer:
9.
136
8.
932
2.8
35
Gearing ratio
Long term liabilities / 18,213,000 18,227,000 18,433,000
Capital employed 32,316,000 34,098,000 32,974,000
Answer:
0.
564
0.
535
0.5
59
On the basis of liquidity, profitability and capital stricture ratios, it has been measured
that both the companies are operating the business in the same manner but the financial
strategies of TLs is better because the risk level of the business is lower.
3. Analysis of stock price:
The stock price level of both the companies has been calculated against the all ordinary
stock prices to identify the changes and the overall performance of the business. The graph of
JBH and TLS are as follows which have been presented against the return of AORD.

Finance for business – Masters 11
Figure 4: JB HI FI
Figure 5: TLS
Introduction:
The report has been presented to identify the performance of stock price of JBH and
TLS against the stock price of AORD. It focuses that how much changes have occurred in the
stock price against the index prices.
Analysis:
Through measuring the stock price of JBH, it has been measured that the stock price
is depicting the positive changes mostly. It brief that the company has managed to improve
the stock prices against the AORD prices. The correlation of JBH is -13% which explains that

Finance for business – Masters 12
the changes into one stock don’t lead to other stock. Both are operating individually (Yahoo
finance, 2018). The graph brief improved changes in JBH stock than AORD which lead to
the conclusion that the overall performance of the business is better and the company could
be a better choice for the investment.
Further, the stock price of TLS has been studied. Through the study, it has been
measured that the stock price of TLS is reducing than the stock price of AORD. It briefs the
stock price of the company is reducing against the AORD prices. The correlation of TLS is
38.49% which explains that the changes into one stock highly lead to other stock. The
changes into TLS would lead to AORD as well (Yahoo finance, 2018). The graph brief
reduced changes in TLS stock than AORD which lead to the conclusion that the overall
performance of the business has been lowered and the management is required to look over
the issues.
Conclusion:
To conclude, the average stock return of JBH, TLS and AORD are 0.73%, -1.94%
and 0.34% which explains that the stock price of JBH is way better in the industry and the
investment into the company would lead to better returns.
4. Analysis on changes into stock price:
The performance of stock price of JBH and TLS has been studied and it has been
found that huge changes have occurred into the stock price of both the companies. The stock
price of a business could be changed because of various internal and external aspects such as
changes into the internal policies or impact of economical issues on the business. In case of
JBH and TLS, the reasons behind the changes have been evaluated.
In case of JBH, on 31 Dec 2015, the stock price of the company has been improved
from $ 19.28 to $ 23.13. It was a huge change which has been occurred due to the new
project proposal of the business which has been leaked (AFR, 2018). In addition, in the year
of 2017, the stock price of the business has also been improved due to the acquisition of
“Good Guys” (CRN, 2018). The internal and external factors have helped the business to
improve the performance.
In case of TLS, on 31 July 2016, the stock price of the company has been lowered
from $ 4.97 to $ 4.53. It was a huge change which has been occurred due to the leaked news
from the company about the changes into board of directors (AFR, 2018). In addition, on 31
July 2017, the stock price of the business has also been lowered due to the impact of the

Finance for business – Masters 13
government regulations on the company (Bloomberg, 2018). It express that the business is
required to focus on all the internal and external aspect to evaluate the performance of the
business.
5. Beta value and cost of equity:
Beta:
Beta values explain the systematic risk of a business which is calculated on the basis
of the changes into the stock price against the index stock price (Madhura, 2014). Beta values
make it easier for the stockholders to identify the related risk with the stock. The beta values
of JB HI FI and Telstra has been found at Reuters (2018) which are as follows:
JBH TLS
Beta 0.36 0.66
(Reuters, 2018)
It explains that the risk level of both the companies is lower to level 1 which explains
that the stock price is less volatile against the index stock price. The stock price of both the
companies is less volatile.
CAPM:
CAPM is a financial evaluation method which is used to identify the cost of equity of
a business. It measures that how much return could be expected from a business against the
investment into the equity of the business (Lord, 2007). The CAPM evaluation method has
been applied on both the companies which are as follows:
JBH
CAPM (Cost of equity)
Risk free rate 5.00%
RM 6.00%
Beta 0.360
Required rate of return 7.16%
TLS
CAPM (Cost of equity)
Risk free rate (Rf) 5.00%
RM (Rp) 6.00%
Beta 0.660
Required rate of return Rf* (Rp)*Beta 8.96%
The required rate of return from JB HI FI is 7.16% whereas the return from TLs is
8.96%. It explains that the TLS is offering higher return to the company.

Finance for business – Masters 14
6. Dividend policies:
The dividend policies are of two types which explains the companies about the
dividend payout rules. There are two theories of dividend payment. One is relevant dividend
policy and other is irrelevant dividend policy. Relevant policy brief the business to pay most
of the net profit to stockholders as return while irrelevant brief to not to distribute to the profit
among the stockholders and use it for further investment of the business.
In case of evaluation on the JB HI FI, it has been found that the dividend per
shareholder of the company has been improved in the year of 2017. However, the company
has reduced the dividend payout ratio by a bit in 2017 (Lord, 2007). The overall dividend
payout ratio of the business is 62.6% which is higher and explains that out of $ 100 net profit
$ 62.6 has been paid by the business as dividend amount. It brief company is following
relevant dividend policies which would attract more investment towards the company.
JB HI FI
2015-06 2016-06 2017-06
Dividends AUD 0.87 0.93 1.09
Payout Ratio % * 66.6 62.8 62.6
(Morningstar, 2018)
Further, in case of Telstra Corporation, it has been found that the dividend per
shareholder of the company has been similar in last 3 years. However, the company has
improved the dividend payout ratio to 108.7%. The overall dividend payout ratio of the
business is 108.7% which is higher and explains that out of $ 100 net profit $ 108.7 has been
paid by the business as dividend amount. It brief company is following relevant dividend
policies which would attract more investment towards the company
Telstra Corp
2015-06 2016-06 2017-06
Dividends AUD 0.3 0.31 0.31
Payout Ratio % * 79.3 88.1 108.7
(Morningstar, 2018)
The evaluation on both the company brief that the performance of Telstra is better as
Telstra is offering higher dividend to the stockholder in comparison with Telstra.
7. Recommendation letter:

Finance for business – Masters 15
To,
ABC (Client name),
Address.
Subject: For recommendation about the investment
Dear Client,
The evaluation on JB HI FI and Telstra corporation has been done on the basis of your query.
Various financial analysis techniques have been applied on both the companies to reach over
a conclusion that which company is best for the purpose of investment. The various analysis
tools such as ratio analysis, stock price evaluation, CAPM, beta, dividends etc has been
evaluated and it has been found that the performance of both the companies are quite similar.
However, the financial strategies and performance of TLS is better because the company has
made all the required changes along with the time to manage the performance of the business.
The profitability ratio analysis on both the companies brief the level has been reduced
because of changes into net profits. Further, the liquidity level explain about better
performance of JB HI FI. And the capital structure analysis lead to the conclusion that the
position of Telstra is better in terms of managing the capital level and risk level of the
business.
The stock price evaluation brief that position of JBH is better in terms of overall return. But
the correlation and the volatility of Telstra is lower. As well, the beta of TLs is lower than
JBH and the return of TLS is higher. the dividend payout ratio of TLS is also higher.
It recommends you to invest in the TLS stock because the stock would offer more return
rather than the JBH stock.

Finance for business – Masters 16
References:
AFR, JB HI FI, Viewed August 31, 2018, https://www.afr.com/research-tools/JBH/share-
prices
AFR, Telstra corporation, Viewed August 31, 2018, https://www.afr.com/business/how-to-
spot-the-next-company-doing-a-telstra-20180627-h11y2l
Bloomberg, Telstra corporation, Viewed August 31, 2018,
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=105289728
CRN, JB HI FI, Viewed August 31, 2018, https://www.crn.com.au/news/jb-hi-fi-revenue-
skyrockets-after-good-guys-acquisition-470774
Gibson, C.H., 2011. Financial reporting and analysis. South-Western Cengage Learning.
Higgins, R.C., 2012. Analysis for financial management. McGraw-Hill/Irwin.
Lord, B.R., 2007. Strategic management accounting. Issues in Management Accounting, 3.
Madura, J. 2014. Financial Markets and Institutions. Cengage Learning.
Morningstar, JB HI FI, Viewed August 31, 2018,
http://financials.morningstar.com/ratios/r.html?t=JBH&region=aus&culture=en-US
Morningstar, Telstra corporation, Viewed August 31, 2018,
http://financials.morningstar.com/ratios/r.html?t=TLS&region=aus&culture=en-US
Reuters, JB HI FI, Viewed August 31, 2018,
https://www.reuters.com/finance/stocks/overview/JBH.AX
Reuters, Telstra corporation, Viewed August 31, 2018,
https://www.reuters.com/finance/stocks/overview/TLS.AX
Yahoo Finance, JB HI FI, Viewed August 31, 2018,
https://finance.yahoo.com/quote/JBH.AX/history?p=JBH.AX
Yahoo Finance, Telstra corporation, Viewed August 31, 2018,
https://finance.yahoo.com/quote/TLS.AX/history?p=TLS.AX&.tsrc=fin-srch

Finance for business – Masters 17
Appendix:
JB HI FI LTD (JBH) CashFlowFlag INCOME STATEMENT
Fiscal year ends in June. AUD in thousands except per share
data. 2015-06 2016-06 2017-06
Revenue
365213
6
395446
7
562800
0
Cost of revenue
285388
3
308905
9
439750
0
Gross profit 798253 865408
123050
0
Operating expenses
Sales, General and administrative
102602
4
110781
9
158690
0
Other operating expenses 74538 79618 129200
Total operating expenses
110056
2
118743
7
171610
0
Operating income -302309 -322029 -485600
Interest Expense 5927 3857 10700
Other income (expense) 503768 543725 755500
Income before income taxes 195532 217839 259200
Provision for income taxes 59021 65658 86800
Minority interest
Other income
Net income from continuing operations 136511 152181 172400
Other
Net income 136511 152181 172400
Net income available to common shareholders 136511 152181 172400
Earnings per share
Basic 1.36 1.51 1.54
Diluted 1.35 1.5 1.53
Weighted average shares outstanding
Basic 100193 100187 111700
Diluted 101261 101257 112724
EBITDA 240583 262597 323800
JB HI FI LTD (JBH) CashFlowFlag BALANCE SHEET
Fiscal year ends in June. AUD in thousands except per share
data.
2015-
06
2016-
06 2017-06
Assets
Current assets
Cash
Cash and cash equivalents 49131 51884 72800
Total cash 49131 51884 72800

Finance for business – Masters 18
Receivables 81480 98073 196600
Inventories
47887
1
54643
7 859900
Prepaid expenses 3943 29800
Other current assets 3473 6124 11600
Total current assets
61689
8
70251
8
117070
0
Non-current assets
Property, plant and equipment
Fixtures and equipment
24081
9
25901
3 310600
Other properties
14369
1
16036
5 173900
Property and equipment, at cost
38451
0
41937
8 484500
Accumulated Depreciation
-
20830
2
-
23580
8 -276300
Property, plant and equipment, net
17620
8
18357
0 208200
Equity and other investments 3
Goodwill 35517 36566 736300
Intangible assets 49024 49024 290300
Deferred income taxes 17363 20703
Other long-term assets 46800
Total non-current assets
27811
5
28986
3
128160
0
Total assets
89501
3
99238
1
245230
0
Liabilities and stockholders' equity
Liabilities
Current liabilities
Accounts payable
25371
2
30214
1 583700
Deferred income taxes 9474 10920 9000
Deferred revenues 141800
Other current liabilities
11715
0
13377
2 151300
Total current liabilities
38033
6
44683
3 885800
Non-current liabilities
Long-term debt
13946
1
10973
6 558800
Deferred taxes liabilities 8200
Deferred revenues 99600
Pensions and other benefits 4323 4881 7300
Other long-term liabilities 27414 26229 39100

Finance for business – Masters 19
Total non-current liabilities
17119
8
14084
6 713000
Total liabilities
55153
4
58767
9
159880
0
Stockholders' equity
Common stock 56521 49264 438700
Other Equity 16555 22144 28300
Retained earnings
26932
2
32829
8 381600
Accumulated other comprehensive income 1081 4996 4900
Total stockholders' equity
34347
9
40470
2 853500
Total liabilities and stockholders' equity
89501
3
99238
1
245230
0
JB HI FI LTD (JBH) Statement of CASH FLOW
Fiscal year ends in June. AUD in thousands except per share
data.
2015-
06
2016-
06
2017-
06
Cash Flows From Operating Activities
Cash Flows From Investing Activities
Investments in property, plant, and equipment -42466 -52343 -49100
Property, plant, and equipment reductions 496 342 200
Acquisitions, net -2400
-
83660
0
Net cash used for investing activities -44370 -52001
-
88550
0
Cash Flows From Financing Activities
Long-term debt issued
45000
0
Long-term debt repayment -40113 -30000
Common stock issued 3125 5955
39590
0
Repurchases of treasury stock -4994 -13225 -9200
Cash dividends paid -87174 -93205
-
11910
0
Other financing activities -484 -90 -1700
Net cash provided by (used for) financing activities
-
12964
0
-
13056
5
71590
0
Effect of exchange rate changes -200 179 -100
Net change in cash
-
17421
0
-
18238
7
-
16970
0

Finance for business – Masters 20
Cash at beginning of period 43445 49131 51900
Cash at end of period
-
13076
5
-
13325
6
-
11780
0
Free Cash Flow
Capital expenditure -42466 -52343 -49100
Free cash flow
13743
0
13279
7
14150
0
Supplemental schedule of cash flow data
Cash paid for income taxes 59886 66246 98500
Cash paid for interest 5689 3657 9300
TELSTRA CORP LTD (TLS) CashFlowFlag INCOME STATEMENT
Fiscal year ends in June. AUD in thousands except per share
data. 2015-06 2016-06 2017-06
Revenue 25845000 25834000 25912000
Cost of revenue 6870000 7247000 10958000
Gross profit 18975000 18587000 14954000
Operating expenses
Research and development 2000
Sales, General and administrative 6936000 6974000 8100000
Other operating expenses 4308000 4503000 4787000
Total operating expenses 11246000 11477000 12887000
Operating income 7729000 7110000 2067000
Interest Expense 846000 796000 729000
Other income (expense) -810000 -714000 4309000
Income before taxes 6073000 5600000 5647000
Provision for income taxes 1787000 1768000 1773000
Net income from continuing operations 4286000 3832000 3874000
Net income from discontinuing ops 19000 2017000
Other -74000 -69000 17000
Net income 4231000 5780000 3891000
Net income available to common shareholders 4231000 5780000 3891000
Earnings per share
Basic 0.34 0.47 0.33
Diluted 0.34 0.47 0.33
Weighted average shares outstanding
Basic 12264000 12202000 11968000
Diluted 12264000 12214708 11968000
EBITDA 10902000 10551000 10817000
TELSTRA CORP LTD (TLS) CashFlowFlag BALANCE SHEET

Finance for business – Masters 21
Fiscal year ends in June. AUD in thousands except per share
data. 2015-06 2016-06 2017-06
Assets
Current assets
Cash
Cash and cash equivalents 1396000 3550000 938000
Total cash 1396000 3550000 938000
Receivables 3438000 3343000 3635000
Inventories 491000 557000 893000
Deferred income taxes 9000 8000 11000
Prepaid expenses 346000 426000 531000
Other current assets 1290000 1456000 1854000
Total current assets 6970000 9340000 7862000
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 65329000 64960000 64312000
Accumulated Depreciation
-
44879000
-
44379000
-
42962000
Net property, plant and equipment 20450000 20581000 21350000
Equity and other investments 338000 565000 486000
Goodwill 1652000 1346000 1269000
Intangible assets 7680000 7883000 8289000
Deferred income taxes 66000 54000 44000
Prepaid pension benefit 296000 15000 142000
Other long-term assets 2993000 3502000 2691000
Total non-current assets 33475000 33946000 34271000
Total assets 40445000 43286000 42133000
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1403000 2537000 2369000
Capital leases 93000 118000 107000
Accounts payable 1256000 1465000 1185000
Deferred income taxes 291000 176000 161000
Deferred revenues 1113000 1118000 1236000
Other current liabilities 3973000 3774000 4101000
Total current liabilities 8129000 9188000 9159000
Non-current liabilities
Long-term debt 13887000 14378000 14574000
Capital leases 251000 269000 234000
Deferred taxes liabilities 1558000 1493000 1539000
Deferred revenues 837000 1022000 1161000
Pensions and other benefits 268000 173000 166000
Minority interest 407000 36000 19000

Finance for business – Masters 22
Other long-term liabilities 1005000 856000 740000
Total non-current liabilities 18213000 18227000 18433000
Total liabilities 26342000 27415000 27592000
Stockholders' equity
Common stock 5198000 5167000 4421000
Other Equity 195000 -95000 -147000
Retained earnings 8533000 10642000 10225000
Accumulated other comprehensive income 177000 157000 42000
Total stockholders' equity 14103000 15871000 14541000
Total liabilities and stockholders' equity 40445000 43286000 42133000
TELSTRA CORP LTD (TLS) Statement of CASH FLOW
Fiscal year ends in June. AUD in thousands except per share
data. 2015-06 2016-06 2017-06
Cash Flows From Operating Activities
Cash Flows From Investing Activities
Investments in property, plant, and equipment -2845000
-
3051000 -3725000
Property, plant, and equipment reductions 94000 470000 679000
Acquisitions, net -980000 1248000 -63000
Purchases of investments -120000 -105000 -82000
Sales/Maturities of investments 4000 56000 285000
Purchases of intangibles -2257000
-
1143000 -1596000
Other investing activities 412000 318000 223000
Net cash used for investing activities -5692000
-
2207000 -4279000
Cash Flows From Financing Activities
Debt issued 1793000 4987000 4710000
Debt repayment -3413000
-
3954000 -4571000
Common stock issued 121000
Common stock repurchased -1004000 -68000 -1502000
Dividend paid -3700000
-
3787000 -3736000
Other financing activities -679000 -955000 -1005000
Net cash provided by (used for) financing activities -6882000
-
3777000 -6104000
Effect of exchange rate changes 132000 5000 -6000
Net change in cash
-
12442000
-
5979000
-
10389000
Cash at beginning of period 5527000 1396000 3550000
Cash at end of period -6915000
-
4583000 -6839000
Free Cash Flow

Finance for business – Masters 23
Capital expenditure -5102000
-
4194000 -5321000
Free cash flow 3209000 3939000 2454000
JB HI FI Telstra Corp AORD
Date
Adj
Close Return
Adj
Close Return Adj Close Return
30/06/2015 19.0766 5.288109 5681.7
31/07/2015 18.7704 -1.61% 4.701447
-
11.09% 5222.1 -8.09%
31/08/2015 18.8692 0.53% 4.694837 -0.14% 5058.6 -3.13%
30/09/2015 17.7429 -5.97% 4.519094 -3.74% 5288.6 4.55%
31/10/2015 19.0766 7.52% 4.48562 -0.74% 5218.2 -1.33%
30/11/2015 19.2841 1.09% 4.694837 4.66% 5344.6 2.42%
31/12/2015 23.1369 19.98% 4.711575 0.36% 5056.6 -5.39%
31/01/2016 21.8625 -5.51% 4.393564 -6.75% 4947.9 -2.15%
29/02/2016 23.295 6.55% 4.460513 1.52% 5151.8 4.12%
31/03/2016 21.7045 -6.83% 4.622081 3.62% 5316 3.19%
30/04/2016 23.0382 6.14% 4.820416 4.29% 5447.8 2.48%
31/05/2016 23.8087 3.34% 4.794547 -0.54% 5310.4 -2.52%
30/06/2016 25.6265 7.64% 4.975635 3.78% 5644 6.28%
31/07/2016 29.3312 14.46% 4.535848 -8.84% 5529.4 -2.03%
31/08/2016 28.97 -1.23% 4.596639 1.34% 5525.2 -0.08%
30/09/2016 28.39 -2.00% 4.419163 -3.86% 5402.4 -2.22%
31/10/2016 27.68 -2.50% 4.48128 1.41% 5502.4 1.85%
30/11/2016 28.04 1.30% 4.525649 0.99% 5719.1 3.94%
31/12/2016 27.65 -1.39% 4.436911 -1.96% 5675 -0.77%
31/01/2017 26.82 -3.00% 4.277182 -3.60% 5761 1.52%
28/02/2017 24.7 -7.90% 4.1352 -3.32% 5903.8 2.48%
31/03/2017 24.69 -0.04% 3.869176 -6.43% 5947.6 0.74%
30/04/2017 23.12 -6.36% 4.034212 4.27% 5761.3 -3.13%
31/05/2017 23.37 1.08% 3.942525 -2.27% 5764 0.05%
30/06/2017 26.01 11.30% 3.759152 -4.65% 5773.9 0.17%
31/07/2017 23.13
-
11.07% 3.364899
-
10.49% 5776.3 0.04%
31/08/2017 22.92 -0.91% 3.334458 -0.90% 5744.9 -0.54%
30/09/2017 22.9 -0.09% 3.382229 1.43% 5976.4 4.03%
31/10/2017 23.61 3.10% 3.277132 -3.11% 6023.5 0.79%
30/11/2017 24.94 5.63% 3.468218 5.83% 6167.3 2.39%
31/12/2017 29.23 17.20% 3.506435 1.10% 6146.5 -0.34%
31/01/2018 25.95
-
11.22% 3.200697 -8.72% 6117.3 -0.48%
28/02/2018 25.81 -0.54% 3.065943 -4.21% 5868.9 -4.06%
31/03/2018 25.7 -0.43% 3.105 1.27% 6071.6 3.45%

Finance for business – Masters 24
30/04/2018 23.99 -6.65% 2.733962
-
11.95% 6123.5 0.85%
31/05/2018 22.52 -6.13% 2.558208 -6.43% 6289.7 2.71%