Financial Health of Canadian Telecommunications Companies - Desklib

ACCOUNTING 1
ACCOUNTING

ACCOUNTING 2
Contents
About the companies chosen: 3
Current business conditions: 3
Financial health of the companies: 4
Industry sector and financial health of the companies and benchmarking: 10
Application of other financial techniques: 13
Conclusion and recommendations: 15
References 18

ACCOUNTING 3
About the companies chosen:
4 companies have been undertaken for review for the purposes of this assignment.
Rogers Wireless being the primary company which is a Canadian wireless telephone company and
has it’s headquarter in Toronto. The company is the largest wireless carrier with about 10.482
million subscribers and with the revenue of an amount of $8.3 billion as per the annual report of the
year 2017. The company is the wholly owned subsidiary of Rogers Communications (Rogers
Communications, 2018).
The second company is Bell Canada which is also known as the Canadian Telecommunications
company and has its headquarters in Montreal, Canada. It is the local exchange carrier for telephone
and also provides in the DSL services in the majority part of Canada. It has the major advantage of
being the local exchange carrier for the enterprise customers in the western provinces (BCE Bell
Canada Enterprises, 2018).
The third company is Telus Corporation which is again a Canadian national telecommunications
company which provides services in British Columbia (Telus, 2018).
The fourth company is Bell MTS Inc which is again a wholly owned subsidiary of BCE Inc which
operates in the telecommunication services in the Canadian province of Manitoba. The company has
its head office located in Downtown Winnipeg, Manitoba (Bell MTS, 2018).
All of these stated companies belong to the sector of mobile operating.
Current business conditions:
As far as the current business conditions are concerned, the industry is one of the greatest
innovations made by the Canadians. The city has revolved in and around many of its efforts when it
comes to the catering of needs of the customers along with many of such vertical industries. Each
and every sector of the city needs the wireless networks in order to function (Communications
Monitoring Report, 2018).
The industry employs about 138,000 people and adds on a great amount of money of investment
into the various different communities of the city each and every year. The demand for such of the
wireless network is immense and it has a record demand of about 500% (Roger communications,
2018).
The industry adopts the wireless services and entails a high penetration of the rates for all of the
latest version of the wireless devices and also caters in to the demand for the mobile network which
drives in the success story of the city. The leadership of the wireless did not happen overnight. It has
taken place due to a sustained investment and also due to innovation which was deployed in by the
use of an advanced wireless network.
Also, the industry witnesses a very stable regulatory environment which counts in the importance of
the facilities which is based on the competition which has made way for many of the investments so
that the city could be developed in terms of the wireless networks (Global news, 2018).
The company Rogers Canada is the largest wireless communication service provider along with the
largest publishing company of Canada (Femfort university, 2018). The company’s financial
performance has improved over the year and it also a huge base when it comes to the operations
and the customers. The company also undertakes many of the strategic activities such as the
introduction of the new services, diversification etc. it is also considered to be the topmost company

ACCOUNTING 4
which is based in Canada and which has over 9 million mobile and 4 million TV subscribers, which is
indeed commendable (Broad cast technology, 2018).
The company does have many release such s the sister o other team payers in the market. The
company is also dependent upon the Canadian market which is a peaking saturation (Market line,
2018). The opportunities of the company includes in the growth in the services pertaining with the
telecommunication all across the various different regions.
The company is exposed to threats from regulatory changes. The company also has wireless number
portability execution which causes in the customer flow. The company is exposed to rapid changes in
the technology with respect to the wireless telephones and also there is a high amount of pressure
from its competitors.
The competitors of the company include BCE-Bell Canada Enterprises, Telus and MTS.
Financial health of the companies:
The following table shows the calculated ratios of the various companies:
Rogers Canada Bell Canada
Enterprises
Telus MTS
(Amounts in $ in
millions)
(Amounts in $ in
millions)
(Amounts in $ in
millions)
(Amounts in $ in
thousands)
Particulars 201
7
201
6
Cha
nge
in %
201
7
201
6
Cha
nge
in
%
201
7
201
6
Cha
nge
in %
2017 2016 Cha
nge
in %
Current ratio: 0.43
558
55
0.50
264
03
13.
34
%
0.43
005
47
0.48
031
26
10.
46
%
0.55
568
4
0.49
969
7
-
11.
20
%
1.848
2996
41
2.037
1227
23
9.2
69
%
Current
Assets 2,97
2.00
2,57
0.00
4,63
9.00
4,85
5.00
2,88
4.00
2,47
4.00
4,57,
249.0
0
4,40,
265.0
0
Current
Liabilities 6,82
3.00
5,11
3.00
10,7
87.0
0
10,1
08.0
0
5,19
0.00
4,95
1.00
2,47,
389.0
0
2,16,
121.0
0
Return on
Assets
turnover
ratio:
0.49
000
45
0.48
345
21
-
1.3
6%
0.41
868
31
0.43
344
38
3.4
1%
0.45
025
04
0.10
094
13
-
346
.05
%
0.662
3184
82
0.547
2525
72
-
21.
026
%
Net sales
14,1
43.0
13,7
02.0
22,7
19.0
21,7
19.0
13,3
04.0
2,79
9.00
7,87,
955.0
6,50,
147.0