Task 3 - Make financial decisions based on financial information

- Company is Vodafone, for balance sheet, cash flow, income statement please use the link i have sent on the assignment brief. - Analyse budgets and make appropriate decisions - Explain the calculation of unit costs and make pricing decisions using relevant information - Assess the viability of a project using investment appraisal techniques - Fill in the attached sheet called Formula sheet with showing all the Calculation. - Calculate and Interpret a. Profitability b. Liquidity c. Efficiency d. Gearing e. Investor Ratios all the relevant information is Attached.

TASK 7
PRESENTATION

Introduction
 Financial information produced from the financial statements is of
great importance for the company. It helps in taking many crucial
monetary decision related to the business. The purpose of this report
is to analyse the financial performance of Vodafone PLC on the basis
of ratio calculation and annual statements

Financial statements
 Balance Sheet
 Cash flow statement
 Income statement

Ratio analysis of Vodafone
 Current Ratio
 Quick ratio
 Gross Profit Margin
 Operating Profit Margin
 ROCE (Return on Capital Employed)

 Receivable Days
 Payable Days
 Inventory Days
 Gearing
 Dividend Yield –
 Earnings Per Share
 Price Earnings Ratio

Financial position of Vodafone

 The revenue was recorded at 43.6 bn. According to the annual reports
the revenue has decreased by 1.9%. The EBITDA margin was fell by
1.1pp percentage points.
 The profit for the financial year has increased by £58.8 billion
because of pre-tax gain on the disposal of interest in Verizon Wireles
of recognition of deferred tax assets.

Earning per share of Vodafone

Conclusion
 Vodafone is looking profitable on a shareholder basis
 Company is having adequate profits to be distributed among the
shareholders
 Higher earning per share can increase the stock price.
 This can be an opportunity for the new investors
 Their business is constantly evolving to adapt to changes in the
customer behaviour, technology, regulation and the competitive
landscape.