Managing Financial Resources and Performance

Running head: MANAGING FINANCIAL RESOURCES AND PERFORMANCE
Managing financial resources and performance
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1MANAGING FINANCIAL RESOURCES AND PERFORMANCE
Table of Contents
Introduction................................................................................................................................2
Company background................................................................................................................2
Task 1.........................................................................................................................................3
Ratio computation for Vodafone............................................................................................3
Task 2.........................................................................................................................................3
Financial analysis...................................................................................................................3
Possible reasons for differences in performance....................................................................7
The reason why Vodafone shall be concerned regarding Deutsche Telekom.......................7
Reference....................................................................................................................................9
Appendix..................................................................................................................................11

2MANAGING FINANCIAL RESOURCES AND PERFORMANCE
Introduction
The report will be focussed on extracting the applicable financial information of
Vodafone Group Plc. those will be used to compute various financial ratios for the year ended
2016 and 2017. Vodafone’s performance will be then compared with its competitor Deutsche
Telekom. The report will further explain the possible reasons for the differences in the
performances and the implication for the Vodafone. Based on the analysis it will also be
mentioned in the report that whether Vodafone shall be concerned regarding the performance
of Deutsche Telekom (Vodafone.com 2018).
Company background
Vodafone Group Plc. That was incorporated on 17th July 1984 is engaged in
telecommunications business. Business of the organization is into 2 geographic regions –
Europe and Africa, Middle East and Asia pacific. It is engaged in acquiring licenses and
spectrum for using radio frequencies for delivering mobile services. On the other hand, the
core business of Deutsche Telekom is sale and operation of connections and networks. It is
the 3rd largest telecommunications company in world and in Europe it is in number 1
(Vodafone.com 2018).

3MANAGING FINANCIAL RESOURCES AND PERFORMANCE
Task 1
Ratio computation for Vodafone
Task 2
Financial analysis
Various ratios have been calculated in part 1 for assessing the performance of
Vodafone Group Plc for the year ended 2016 as well as 2017. These are as follows –
 Return on capital employed – it is the financial ratio used for measuring the
profitability of the company and the efficiency with which the capital of the
organization is employed. It is calculated through dividing the EBIT by capital
employed. This ratio is significantly useful while comparing the entities from capital-