Financial Analysis of SingTel: Microeconomics Report and Findings

This report provides a microeconomic analysis of SingTel, focusing on its financial performance. It examines key financial ratios, including the current ratio and debt-to-equity ratio, over a five-year period. The analysis reveals insights into SingTel's liquidity, financial leverage, and overall financial hea...Read More

Running head: MICROECONOMICS
MICROECONOMICS
Name of the Student
Name of the University
Author Note

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Table of Contents
Microeconomics.........................................................................................................................2
Objectives and missions.............................................................................................................3

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Microeconomics
From the analysis of the current ratio of SingTel in the last 5 years it has been
observed that their current ratio is less than 1 which indicates their poor condition of liquid
assets to meet their short term obligation. The sharp fall in the current ratio is due to the
increase of their current liabilities of $9272.30 million in comparison to their liabilities in the
year 2016. In addition to the poor condition of the liquid assets the receivable turnover ratio
is also low which indicates the inefficiency of the management to recover the dues within the
stipulated time1.
Year SINGTEL
2015 0.83
2016 0.79
2017 0.64
2018 0.8
2019 0.8
By analysing the debt to equity ratio of the last 5 years it can be observed that
SingTel’s financial leverage remains constant this reflects that the company is not buying
assets by taking loan from the market. This is a good indicator, from this trend it can be said
that due to its less burden of debt the company can be treated as less risky in comparison to
the competitors whose debt to equity ratio is high. The debt burden of SingTel is low, as the
company has captured a large position of the equity market in Singapore and their customer
base is huge in the telecommunication sector2.
1P . & D Maya Nihayah, "The Causality of Economic Growth and Development of Telecommunications
Infrastructure in ASEAN", in KnE Social Sciences, vol. 3, 2018, 198.
2 F Hashim, E Ahmad Ries & N Teck Huai, "Corporate Social Responsibility and Financial Performance: The
Case of ASEAN Telecommunications Companies", in KnE Social Sciences, , 2019.

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As the debt portion in their capital structure is low it is safe for the investors to invest
in this company. The organisation can assure the investors that as the debt to equity ratio is
low the company does not have any financial obligation which can affect their cash flow if
any financial crisis occurs in the future.
Debt to
Equity Ratio
0.699 0.744 0.712 0.632 0.640
Objectives and missions
SingTel has been awarded as the top 100, most sustainable company in world in the
year 2020 it has also been listed in the Bloomberg gender equality index and it get the
recognition of the highest scoring telecommunication company in southeast Asia. The
management and the board of directors of the company always look forward to contribute in
the social, economic and environmental improvement of the country and achieve sustainable
growth3.
The mission and vision of their company is to focus on serving best quality products
to the customers and improve the excellence of their business activities by taking the support
of their efficient corporate governance policy and translucent corporate charter4.
Further, SingTel telecommunication also make a balance between their organisational
goal and the expectation of the society and the common people. The organisation give efforts
in excess of their business objectives in order to perform their social responsibilities and to
integrate sustainability, to build a strong relationship with their stakeholders.
3 M Faccio & L Zingales, "Political Determinants of Competition in the Mobile Telecommunication Industry",
in SSRN Electronic Journal, , 2017.
4 E Sutherland, "Corporate social responsibility: the case of the telecommunications sector", in info, vol. 18,
2016, 24-44.

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