Vodafone PLC Financial Performance Evaluation: Ratio & Trend Analysis

This presentation provides a financial analysis of Vodafone PLC, focusing on ratio calculations derived from the company's financial statements, including the balance sheet, cash flow statement, and income statement. Key ratios such as current ratio, quick ratio, gross profit margin, operating profit margin, ROCE, receivable days, payable days, inventory days, gearing, dividend yield, earnings per share, and price-earnings ratio are analyzed to evaluate Vodafone's financial position. The presentation highlights a revenue of £43.6 billion, a decrease of 1.9%, and a decrease in EBITDA margin by 1.1 percentage points. The profit for the financial year increased by £58.8 billion due to pre-tax gain on the disposal of interest in Verizon Wireless and recognition of deferred tax assets, resulting in higher earning per share. The analysis concludes that Vodafone appears profitable for shareholders, with adequate profits for distribution and potential stock price increase, presenting opportunities for new investors as the company adapts to evolving market dynamics. Desklib provides more solved assignments.

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.