Telstra Financial Analysis Assignment

Telstra Financial Analysis
Assignment 2 - Financial Analysis Project

Contents
1 Executive Summary...........................................................................................................................3
2 Organisation's Business Profile..........................................................................................................4
3 Financial reports for 2015-2016........................................................................................................5
4 Financial ratio analysis......................................................................................................................8
4.1 Profitability................................................................................................................................8
4.2 Efficiency...................................................................................................................................9
4.3 Liquidity and Solvency.............................................................................................................10
4.4 Share market performance.....................................................................................................11
4.4.1 Stock Price.......................................................................................................................11
4.4.2 Dividend..........................................................................................................................12
5 Conclusions and Recommendations...............................................................................................13
6 References......................................................................................................................................14
A. Appendix.........................................................................................................................................15
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1 Executive Summary
This report examines financial results of Telstra’s late performance and more specifically, focuses on its
investment performance, shareholders returns in dividends and share prices growth. Furthermore, it
presents the comparison of the strategies between past performance and future expectations, by
identifying the business profile and analysing financial ratios.
Telstra is an established mature and slow growth company in terms of the use of their capital, margins
and inventory management. The competitive insensitive in the market across all communication
companies and the NBN returns did lead to the share price decline for all Telstra’s core business units.
After all the company still has a good yield, dividend payment is secure and Telstra is winning more
customers in the various categories of the telecommunication markets including mobile broadband
and the NBN.
Telstra's future focus is investing in innovation and trying to engage more with the clients rather than
only trying to have attractive and competitive prices. As a telecommunication provider and due to the
increase of the data volumes and faster connectivity demands, Telstra should still be a strong hold for
all the existing investors and a buy for all the potential investors.
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