TELSTRA Student name – ID FIN600 TX YYYY Assignment – Company Executive Summary Contents Page Number 1 Introduction - Background and Business 2 2 Company Analysis - Current Financial performance,...

TELSTRA
Student name – ID
FIN600 TX YYYY
Assignment – Company
Executive Summary
Contents
Page Numbe
1
Introduction - Background and Business
2
2
Company Analysis - Cu
ent Financial performance, economic outlook
3
Ratio Analysis
3.1
Profitability ratios
3.2
Efficiency ratios
3.3
Liquidity ratios
3.4
Gearing ratios
4
Recommendations and overall assessment
5
References/Bibliography
Appendices – attached Excel Spreadsheet
1
Introduction
1.1
Background and Business
Discussion
2
Company Analysis
2.1
Financial statements, Cu
ent Financial performance, economic outlook
Discussion
3
Ratio Analysis
3.1
Profitability and Market ratios
    (see appendix for calculations)
    YYYY
    YYYY
    Industry average
    Return on assets
    %
    %
    %
    Return on equity
    %
    %
    %
    Net profit margin
    %
    %
    %
    Gross profit margin
    %
    %
    %
    Net Interest Income
    %
    %
    %
    Expense ratio/Cost to Income ratio
    %
    %
    %
    Cash return on sales
    %
    %
    %
    Earnings per share
    $ per share
    $ per share
    $
    Price earnings ratio
    times
    times
    times
    Earnings yield
    %
    %
    %
    Dividends per share
    $
    $
    $
Discussion
3.3
Efficiency ratios
    (see appendix for calculations)
    YYYY
    YYYY
    Industry average
    Asset turnove
    times
    times
    times
    Cash return on assets
    times
    times
    times
    Fixed Asset turnove
    times
    times
    times
Discussion
3.3
Liquidity ratios
    (see appendix for calculations)
    YYYY
    YYYY
    Industry average
    Cu
ent ratio
    xx:1
    xx:1
    xx:1
    Quick ratio
    xx:1
    xx:1
    xx:1
    Receivables turnove
    Days
    Days
    Days
    Average collection period
    Days
    Days
    Days
Discussion
3.4
Gearing ratios
    (see appendix for calculations)
    YYYY
    YYYY
    Industry average
    Debt to equity ratio
    %
    %
    %
    Debt ratio
    %
    %
    %
    Equity ratio
    %
    %
    %
    Cash debt coverage
    %
    %
    %
    Interest cover ratio
    times
    times
    Times
Discussion
4
Recommendations and overall assessment
Discussion
ENSURE YOU COVER THE BELOW IN YOUR DISCUSSION, USE EACH LINE AS A HEADING
Discuss all the below in relation to ratios and information from reports.
Has Year 1 been better than Year 2 for the company?
Will the company succeed in the future?
The likelihood of a merger or acquisition?
Consider the relevant ethical considerations if the organisation becomes insolvent
Suggest what should the company be doing help it succeed?
The impact of the political competitive environment on the business
External factors that need to be taken into consideration
Would you invest in this company?
5
References/Bibliography
Appendices – attached Excel Spreadsheet
Company
fin600 tX YYYY
name: XXXXXXXXXXStudent id:
PAGE
7

Profitability Ratios
    Profitability and Market Ratios - COMPANY ASX CODE
            YYYY    YYYY    Average for Industry    Industry average to be provided by facilitato
    Return on Assets    Profit / Average total assets    Profit / ((Year 1 Total A + Year 2 Total A)/2)    Profit /Year 2 Total A
            0    0
            0.00%    0.00%    result %
    Return on Equity    Profit / Average equity    Profit / ((Year 1 OE + Year 2 OE)/2)    Profit /Year 2 OE
            0    0
            0.00%    0.00%
    Net Profit Margin    Net profit / Sales or revenue    NP/ Revenue    NP/ Revenue
            0    0
            0%    0%    result %
    Gross Profit Margin    Gross profit / Sales or revenue    GP/ Sales    GP/ Sales
            0    0
            0%    0%    result %
    Net Interest Income    Net Interest Income / Average Earning Assets    NII / ((Year 1 earning A + Year 2 earning A)/2)    NII / Year 2 earning A
        for banks only    0    0
            0.00%    0.00%    result %
    Expense ratio    Expenses (excluding tax) / Net sales    Exp / Revenue    Exp / Revenue
        (using operating expenses/operating income)    0    0
            0%    0%    result %
    Cash return on sales    Net cash flow from operating activity / Sales or Revenue    $ op activities / REV    $ op activities / REV
            0    0
            0%    0    result %
    Earnings per share    Profit for shareholders / Number of ordinary shares    $xx per share    $xx per share
        EPS taken from annual report
    Price earnings ratio    Share price 30 June / Earnings per share    $XX / EPS    $XX / EPS
        share price 30 June taken from annual report    0.0000    0.0000
            XX times    XX times    result times
    Earnings yield    EPS / Share price 30 June    EPS / $XX    EPS / $XX
        share price 30 June taken from annual report    0    0
            0.00%    0.00%    result %
    Dividends per share    Dividends - Special dividends/ No of shares    $XX per share    $XX per share    $xx per share
    (determined)    DPS taken from annual report
EPS taken from annual report
DPS taken from annual report
Efficiency Ratios
    Efficiency Ratios - COMPANY ASX CODE
            YYYY    YYYY    Average for Industry    Industry average to be provided by facilitato
    Asset turnover    Sales / Average total assets    revenue / ((Year 1 Total A + Year 2 Total A)/2)    revenue / Year 2 Total A
            0    0
            xx times    xx times    result times
    Cashflow return on assets    Net cash from op activities / Average total assets    $ op activities/ A    $ op activities/ A
            0    0
            result times    result times    result times
    Fixed-Asset Turnover Ratio    Sales / Total non cu
ent assets    revenue / Total NCA    revenue / Total NCA
            0    0
            xx times    xx times    result times
Liquidity Ratios
    Liquidity Ratios - COMPANY ASX CODE
            YYYY    YYYY    Average for Industry    Industry average to be provided by facilitato
    Cu
ent Ratio    Total cu
ent assets / Total cu
ent liabilities    CA / CL    CA / CL
            0    0
            XX:1    XX:1    XX:1
    Quick Ratio    (Total cu
ent assets - Inventory) / Total cu
ent liabilities    (CA - INV) / CL    (CA - INV) / CL
            0    0
            result:1    result:1    XX:1
    Receiveables turnover    Credit sales rev / Avg receivables    (Credit sales rev/ ((Year 1 Acc rec + Year 2 Acc rec)/2)/100) *365    (Credit sales rev/Acc rec)/100*366
        (can only calculate if credit sales specified or provided)    0    0
            result days    result days    result days
    Average collection period    Average receiveables x 365 / Net credit sales rev    (Acc rec *365) / Rev    (Acc rec *365) / Rev
        (can only calculate if credit sales specified or provided)    0    0
            xx days    xx days    result days
Gearing Ratios
    Gearing Ratios - COMPANY ASX CODE
            YYYY    YYYY    Average for Industry    Industry average to be provided by facilitato
    Debt to Equity    Total debt / Total equity or Total liabilities / Total equity    Debt / Equity    Debt / Equity
        or Actual debt / Total equity    0    0
            - 0    - 0    result%
    Debt ratio    Total debt / Total assets    Debt / Total Assets    Debt / Total Assets
            0    0
            0%    0%    result%
    Equity Ratio    Total equity / Total assets    OE / A    OE / A
            0    0
            0%    0%    result%
    Cash debt coverage    Avg total liabilities / $$ from op activities    ((Year 1 Total L + Year 2 Total L)/2) / $ operating activities    Year 2 Total L / $ operating activities
            0    0
            0%    0%    result%
    Interest coverage ratio    EBIT / Interest expense    EBIT / Interest Exp    EBIT / Interest Exp
            0    0
            xx times    xx times    result times