Financial Research Methods and Vodafone PLC: A Project Report

This project report delves into the financial research methods used to evaluate the performance of Vodafone PLC. It begins with an executive summary outlining the research's objectives: to analyze Vodafone's financial position and performance using various financial tools. The report includes a comprehensive literature review covering financial research methods, Vodafone's overview, and key performance indicators like profitability, liquidity, and efficiency. The methodology section details the approach taken, including variable definitions and measurement techniques. The results and discussion sections present the findings, likely involving ratio analysis and other financial statement analyses. The report concludes with a summary of the research, drawing conclusions about Vodafone's financial health and performance. The report aims to provide insights into Vodafone's financial standing for investors and analysts, offering a detailed examination of the company's financial data and strategic implications.

Running Head: Financial Research Methods
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Project Report: Financial Research Methods

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Executive summary
This research paper has been prepared to analyze the financial research methods to
identify and determine the financial position and the performance of a company through the
help of various financial tools. This research paper has been prepared over the Vodafone plc
to analyze and investigate the performance of the company. In this research paper, literature
review has been done over the financial research methods and further, the study has been
done over a company to justify the literature study and analyze that how the tools and
methods of financial research help a company to make better decisions about the
performance, strategy planning, process and various other terms. In this research paper, firstly
the study has been done over various articles, books and the newspaper to do literature study
and further, the methodology have been performed over the Vodafone plc to identify and
found that how would the financial research tools could be conducted to analyze the
performance and the position of a company. this research paper would offer the knowledge
about the financial research methods and their use to the readers.

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Contents
1.0.....................................................................................................................................5
1.1.................................................................................................................................5
1.2.................................................................................................................................6
1.3.................................................................................................................................6
1.4.................................................................................................................................6
1.5.................................................................................................................................6
2.0 LITERATURE REVIEW........................................................................................7
2.1 Introduction.............................................................................................................7
2.2 Overview of Vodafone...........................................................................................8
2.3 Firm performance...................................................................................................8
2.4 Non financial performance.....................................................................................9
2.5 Financial performance..........................................................................................10
2.5.1 Profitability performance...................................................................................10
2.5.2 Liquidity performance.......................................................................................11
2.5.3 Efficiency performance.....................................................................................12
2.6 Ratio analysis........................................................................................................12
3.0 METHODOLOGY................................................................................................13
3.1...............................................................................................................................13
3.2...............................................................................................................................14
3.3Variables Definition and Measurement.................................................................15
3.4...............................................................................................................................16
3.5...............................................................................................................................17
3.6...............................................................................................................................17
3.7...............................................................................................................................17

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4.0 RESULTS AND DISCUSSION OF RESULTS...................................................18
5.0 CONCLUSION......................................................................................................21
REFERENCE.................................................................................................................23
APPENDIX.....................................................................................................................26

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1.0 INTRODUCTION
1.1 Background:
Financial research methods are used by the companies and the investors to analyze
and investigate over the performance of a company in terms of the finance. Financial
methods must be performed over the company while taking any decision about the
performance and the future changes in the company. Various tools are available to conduct a
study and evaluation program over the financial data of the company. So that a good strategic
plan could be prepared and the planning could be implemented over the company to achieve
the goals of the company (Fulin, 2011).
Further, it has been found that it is requisite for the analyst, investors and the top level
management and financial management of a company to analyze and investigate the financial
statement of the company to make a better decision about the performance and position of the
company (Deegan, 2013). These techniques help the company to make a better decision so
that the goals could be achieved timely. Further, it has been investigated that it becomes
mandatory for the finance managers to identify the problems and conduct a research over the
performance to reach over a conclusion and ratifies the error in the company in financial
terms.
For this research paper, Vodafone plc has been taken into the consideration. Vodafone
plc is a telecommunication company which is mainly based in the British market.
Headquarter of the company is in London. This company has been awarded by 5th revenue
generating company. This is the 8th largest company in the London stock exchange. Various
competitors of the company are INMARSAT, AVANTI COMMUNICATIONS GROUP
PLC, MONITISE PLC, GAMMA COMMUNICATIONS PLC and PEOPLES OPERATOR
PLC.
Further, for this research paper, literature review has been done over the financial
research methods and further, the study has been done over a company to justify the literature
study and analyze that how the tools and methods of financial research help a company to
make better decisions about the performance, strategy planning, process and various other
terms. In this research paper, firstly the study has been done over various articles, books and
the newspaper to do literature study and further, the methodology have been performed over

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the Vodafone plc to identify and found that how would the financial research tools could be
conducted to analyze the performance and the position of a company (Lacalle, 2017).
1.2 Research aim and objectives:
This research paper has been prepared to analyze the various financial methods which
could be used by the analysts and the companies to evaluate the performance and the position
of the company. The main aim and the objective of this research paper are to identify the
financial performance and the financial position of Vodafone plc in the market. The main
objective of this research paper is to depict the investors and analyst about the position of
Vodafone plc so that a better decision could be made by the investors regarding the
investment in the organization or divest the amount from the organization.
1.3 Rationale:
For this research paper, literature study has been done so that, the importance of
financial research could be analyzed. And further, it could also be found that what the
methods to analyze the financial research are. More, it has been found that how is the position
of the Vodafone plc in the industry. The financial statement of last 10 years of the company
has been analyzed and various method such as horizontal analysis, vertical analysis and ratio
analysis have been done to investigate the financial performance, stability performance and
profitability position. This study and literature review has been conducted to make a better
research paper about the performance and the position of the company.
1.4 Scope and Limitations:
Further, scope and limitations of the research paper has been evaluated. The main
scope of this research paper is the assistance which could be used by the investors and
analysts to make a better decision about investment in the organization or divest the amount
from the organization. This would help the investors to identify the changes in the
organization from last 10 years. Further, the limitation of this research paper is various
assumptions and various external aspects which have not been considered while preparing
this research paper. More, the time was limited while conducting this research paper. This has
impacted over the main conclusion and recommendation of this research paper.
1.5 Project Outline:

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In this research paper, firstly, introduction of the research paper and the organization
has been done. Further, literature review study has been done over the financial research
methods and further, the study has been done over a company to justify the literature study
and analyze that how the tools and methods of financial research help a company to make
better decisions about the performance, strategy planning, process and various other terms
Further, the methodology have been performed over the Vodafone plc to identify and found
that how would the financial research tools could be conducted to analyze the performance
and the position of a company
2.0 LITERATURE REVIEW
2.1 Introduction:
Elmuti & Kathawala, (2001) has depicted into his study that financial research methods
are the best way to analyze the changes and the performance of the company. Further, it has
been added by Du and Girma, (2009) that the techniques and methods of financial research
are quite wider and it depends over the financial analyst or the organization to choose the best
method to perform the study. De Haan and Amtenbrink, (2011) express that if the best
strategy would be chose than it becomes easy for the organization to analyze the changes and
the performance of the company on the basis of those changes.
Further, Deegan (2013) express that financial research methods age quite wider and
thus it becomes difficult for an organization to choose the best method according to their
nature and operations. If the best strategic plan and method would be chose by the company
than it would be perfect for the betterment and the analysis of the company (Davies and
Crawford, 2011). More, it has been found through these studies that an organization must
look over the competitor financial research methods and must opt for the financial research
method accordingly (Brigham and Michael, 2013).
Though, Ahmed, Neel and Wang, (2013) has depicted that analyzing the financial
performance of a company is not easy, various assumptions are required to be taken before
considering and taking a decision about the position and performance of the company. More,
financial research method only takes the concern of the financial data which affect the
conclusion of the research paper. Further, Bertomeu, Darrough and Xue, (2017) depicted that
an analyst and researcher must take the concern of the non financial data as well before

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making a decision about financial performance, position, profitability and stability of a
company.
If an organization fails into analyzing the best financial method then it becomes very
typical for the organization to reach the goals and make a better decision about the
performance and the operations of the company (Brealey, Myers and Marcus, 2007). More, it
has been added by the Brigham and Ehrhardt, (2013) that all the financial research methods
are their own way, all the methods express about the different point of the organization such
as the study of ratio analysis would allow the manager to make a decision about the current
performance of the company in context of various financial figures. Kaplan and Atkinson,
(2015) depict that various studies are available for the financial research such as ratio
analysis, vertical analysis, horizontal analysis, dividend growth model, capital asset pricing
method, efficient market hypothesis etc.
2.2 Overview of Vodafone:
Vodafone group plc is an international organization which has been started in British
market. Currently, the head office of the company is in London. Mainly, the services of this
comapny are provided into the Asian countries, Europe, Africa and Oceania. According to a
current study, in mobile industry, this company has fallen into the fifth rank in terms of the
revenue and the performance of the company. This company has a connection in around 26
countries and around 50 partners are hold by this company to manage and administer the
functions and the operations in a well manner. Further, it has been found that the revenue of
the company is enhancing rapidly which depict about the great performance of the company.
This company has listed itself in the London stock exchange and it recognized as FTSE 100
Company. This company has a market capitalization of around £ 52.5 billion (Home, 2017).
Further, through the study over the financial statement and the performance of the
company, it has been found that the financial research methods are used by the Vodafone plc
and the investors to analyze and investigate over the performance of the organization in terms
of the finance. Ratio analysis study and horizontal analysis have been perform over the
company for making a better decision about the performance and the future changes in the
company. Various tools have also been analyzed to conduct a study and evaluation program
over the financial data of the Vodafone plc to make a better decision about the performance
of the company.

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2.3 Firm performance:
Through the evaluation and performance analysis of Vodafone Plc, it has been found
that the performance of the company is enhancing rapidly. Though, some changes have faced
by the company in the last 10 years but current position of the company depicting about the
better position and stability level of the company. More, it has been found that it becomes
important for the company to make some changes into the strategies and policies timely to
enhance the position and performance of the company in the industry (Higgins and Robert,
2012).
Through the evaluation over the industry, it has been found that various changes have
taken place into the industry as well. The financial and economical position of the industry
has been better from last years as well as the market share of the industry has been enhanced
and it had directly impacted over the position and the performance of the company. Further, it
has been analyzed that the current market share of the company is highest in the industry
(Engle and Hunton, 2015). The global financial crisis has impacted over the position of the
company but the current changes are expressing that the impact of financial crisis have been
lowered in the company.
More, through the evaluation over financial and non financial performance of the
company, it has been found that the changes are depicting about the better future of the
company as well as higher return would be provided by the company to its shareholders
(Everett, Neu, Rahaman and Maharaj, 2015). More, it has been found that these changes
would assist the company to diversify the business into new market to enhance the market
share and enhance the profitability position of the company (Guan, 2014).
According to the study over the Vodafone plc, it has been found that the financial and
non financial performance of the company evaluates the performance and the operations of
the company. Through the analysis, it has been found that the performance of the company
has been better according to the current scenario (Fang, Haw, Yu and Zhang, 2014). More, it
has been found that all the financial research methods and non financial research methods
express about the different point of the organization such as the study of ratio analysis would
allow the manager to make a decision about the current performance of the company in
context of various financial figures (Deegan, 2017).

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2.4 Non financial performance
Non financial performance of the company depict that various changes have taken
place into the industry as well. The environmental, social and economical position of the
industry and the company depict that various better changes have taken place into the
industry and the company and it had directly impacted over the position and the performance
of the company. Further, it has been analyzed that the current market share of the company is
highest in the industry (Deegan, 2017). The recent crisis has impacted over the position of the
company but the current changes are expressing that the impact of crisis have been lowered
in the company (Brigham and Ehrhardt, 2013).
More, through the evaluation over non financial performance of the company, it has
been found that the changes are depicting about the better future of the company as well as
the market share of the company has also been enhanced (Brigham and Houston, 2012).
More, it has been found that these changes would assist the company to diversify the business
into new market to enhance the market share and enhance the profitability position of the
company (Li, 2015).
According to the study over the Vodafone plc, it has been found that the non financial
performance of the company evaluates the performance and the operations of the company.
Through the analysis, it has been found that the performance of the company has been better
according to the current scenario (Fang, Haw, Yu and Zhang, 2014).
2.5 Financial performance:
Further, the financial performance of the company has also been analyzed. Further,
through the analysis, it has been found that following changes have taken place into the
position of the company is last 10 years:
2.5.1 Profitability performance
According to this study, it has been analyzed that the profitability position of the
company has been lowered from 2008 in 2017. This has taken place due to various changes
into the market, economical position etc. through this study, it has been found that company
is required to focus over the performance again to manager and enhance the profitability
position (Zimmerman and Yahya-Zadeh, 2011).

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2.5.2 Liquidity performance
Further, from this study, it has been analyzed that the liquidity position of the company
has been enhanced from 2008 in 2017. This has taken place due to various positive changes
into the market, economical position etc (Radebaugh, Gray and Black, 2006). Through this
study, it has been found that company has managed the current assets and the liabilities in
such a manner that the best output could be got (Weston and Brigham, 2015).

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2.5.3 Efficiency performance
. Further, efficiency ratios and the investment ratios express that the company is
required to make some changes into the working capital management and the dividend and
the pricing of the company Klemstine and Maher, (2014).
(Ward, 2012)
2.6 Ratio analysis
It has been said by Bui et al, (2016) that ratio analysis is a study which is performed by
the financial analyst and financial manager to identify the position and the performance of the
company. This study helps the analyst to make a better decision about the condition, stability
and performance of the company. More, it has been expressed by Madhura, (2011) that ratio
analysis study takes a concern of various positions such as liquidity position, solvency
position, profitability position, capital position etc. More, Borio, (2014) express in his article
that if the study of ratio analysis would be performed in the business than it would allow the
manager to make a decision about the current performance of the company in context of
various financial figures.
If an organization fails into analyzing the best result through ratio analysis method then
it becomes very typical for the organization to reach the goals and make a better decision
about the performance and the operations of the company. More, it has been added by the
Arnold (2013) that all the financial research methods are their own way, all the methods
express about the different point of the organization such as the study of ratio analysis would