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Financial Statement Analysis- Telstra Corporation Ltd- 2012 to 2017

   

Added on  2021-05-30

16 Pages2490 Words210 Views
Financial Statement Analysis- TelstraCorporation Ltd- 2012 to 2017Name-Student Number-Name of Tutor-Time of Tutorial-1 | P a g e

Table of ContentsCompany Overview.....................................................................................................................................3Mission statement- Telstra..........................................................................................................................3Financial Statement Analysis Telstra- 2012-17............................................................................................3Balance Sheet Analysis............................................................................................................................3Profit and Loss Analysis...........................................................................................................................4Cash Flow Analysis.......................................................................................................................................5Liquidity Analysis.........................................................................................................................................6Income analysis...........................................................................................................................................6Capital structure analysis.............................................................................................................................7Coverage......................................................................................................................................................8Growth and Risk Analysis............................................................................................................................9Observations.............................................................................................................................................10Bibliography...............................................................................................................................................11Appendices:...............................................................................................................................................12Appendix A- Balance sheet common size analysis.................................................................................12Appendix B- Common size analysis of Profit and Loss...........................................................................13Appendix C- Horizontal Analysis Balance Sheet.....................................................................................14Appendix D- Horizontal Analysis Profit and Loss...................................................................................152 | P a g e

Company OverviewThe company Telstra Corporation Ltd. has started its journey since 1901 with its erstwhile nameas Post Master General. The company was named as Telstra Corporation Ltd in 1993 with itsshare listed in ASX with ASX code TLS. The company is engaged in the field of telecom, dataservice and domestic signal provider for home television channels. [ CITATION Jac13 \l 1033 ]The company provides 17.6 million retail mobile services, 5.1 million retail fixed voice servicesand 3.5 million retail fixed broadband services. [ CITATION Tek18 \l 1033 ]Mission statement- TelstraVision- to ensure improvement as per the way of live and work of peopleMission- the company builds simple technology and content solutions with simplicity, easy forusing and acknowledged by customers. Telstra strives hard to serve and understand customers ina better way than the competitors. [ CITATION GPS12 \l 1033 ]Financial Statement Analysis Telstra- 2012-17Balance Sheet AnalysisBalance sheet analysis showed following features:3 | P a g e

Current Assets- Total current assets are comprised of cash, receivables, prepaid expenses,inventories, investments-short term, NCA held sale and others. Out of them cash isshowing significant variance from 2012 to 2017. Receivables are also showing high in2017. Prepaid expenses and inventories are in increasing trend. Investments arefluctuating during the period. Overall current assets are going up and down as per theitems.Non-Current Assets- NCA is comprised of receivables, inventories, investments, PP&E,intangibles excluding goodwill, goodwill, future tax benefit and others. Receivable isincreasing denoting that recovery of long term receivable is not as per expectation during2012-2017. Long term investments are increasing. Intangible assets except goodwill areincreased. Overall trend of NCA is trending towards increase during the period. Current Liabilities- Current liabilities are comprised of payable, short term debt,provision, NCL held sale and other. All the current liabilities are with generalized trendof status quo maintained with no significant variance found. Non-current liabilities- Non-current liabilities had shown insignificant variance indifferent items except long term debt with increasing trend. Profit and Loss AnalysisRevenue and operating expenses are showing standard increasing trend as per inflationfactor. EBIT had not shown significant increase during the period. Tax expense increasedin 2017 comparing other years. NPAT had reached highest in 2016 due to impact ofabnormal factor. Earnings per share considering abnormal effect had rose to peak in2016, too.4 | P a g e

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