Finance and Marketing Report - Vodafone

Introduction to Finance and
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Main activities and markets of Vodafone.............................................................................1
1.2 Basic principles, roles and purpose of financial statements..................................................1
1.3 Analysis of financial performance of Vodafone...................................................................2
1.4 Benefits and limitations of different ratios............................................................................7
1.5 Analysis necessary for short and long term financial decisions ..........................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

Index of Tables
Table 1: Ratio Analysis of Vodafone..............................................................................................3

INTRODUCTION
Financial statements helps an organisation to measure its performance in the market.
Analysis of financial statements is an efficient way to assess the position of the company in all
aspects of the business (Best, 2014). Ratio analysis is used to analyse and compare the data of
the company with its past performance. It also gives useful information about the liquidity,
solvency and efficiency of the company. These analysis form an important part in decision
making and strategies for the future (Boczko, 2016). The report includes the analysis of
Vodafone company and its performance in the last two financial years. Vodafone is a British
multinational telecom company with its networks across 50 countries (Vodafone Plc. 2015).
It is the second largest telecommunication company with its headquarters in London, UK. Along
with this, the benefits and limitations of ratios for Vodafone has also been included in the report.
TASK 1
1.1 Main activities and markets of Vodafone
Vodafone is a global company and it has variety of products in its portfolio. It is a world
famous telecommunication company has products like fixed lines, mobiles, internet services,
digital television, money transfers and mHealth services. The turnover and the customer base has
been growing at a good pace in the recent past. It has 7 billion mobile phone and 1 billion land
line customers around the world (Cheung and et.al., 2014). It also offers communication
solutions like cloud computing, unified collaborations and communications to various
companies (Vernimmen and et.al., 2014). Furthermore, mobile payment, mobile emails,
broadband, managed services and machine to machine services are provided by the company.
The profits and revenues has been constantly rising and it is a good sign for the future of the
company.
1.2 Basic principles, roles and purpose of financial statements
The purpose of financial statements is to provide information about the performance of
the company to its stakeholders and management to facilitate their decision making process
(Tugas, 2012). The stakeholders who rely on these statements are customers, suppliers, investors,
employees, management, lenders and government. All the credit decisions, investment decisions,
taxation decisions and union bargaining decisions are taken on the basis of these statements
(Hendrick and Crawford, 2014). The financial statements include Balance sheet, profit and loss
1