Coroporate finance Research Paper Example | Topics and Well Written Essays - 1500 words

Coroporate finance - Research news typography publisher ExampleRatio abbreviation uses data from the financial statements to develop financial formulas that propose symmetrys. The purpose of this paper is to utilize ratio analysis to analyze the financial performance of Qatar telecommunication Q.S.C. and Vodafone Qatar Q.S.C. during the last two years. ac club profile Qatar Telecom Qatar Telecom is the leading telecommunications companionship in the small Persian Gulf solid ground of Qatar. The companys landline business operates in a monopoly market since the firm is the only company that provides that service. Some of the services that the company provides to its customers include landlines, wireless communication, internet, and cable television. The firm is a international toilet that operates in 17 countries. The studyity ownership of the company is held by the government of Qatar who owns 55% of the firm. The remaining 45% is owned by private investors who openly trade their stocks in the Qatar Exchange. Company profile Vodafone Qatar Vodafone is a multinational corporation in the telecommunication industry that operates in over 30 countries. The firm was founded in 1985. The company has over 403 million customers around the world. The firm has used strategic alliances and partnerships to expand its reach. Its global network of partners is still of 50 companies. The firm is considered the 7th most valuable brand within its industry. The organization has a change portfolio of products and services which includes mobile, business, and marketing solutions. Overview ratio analysis The use of ratio analysis can help companies prize the financial performance of an enterprise. The analysis is considered a quantitative tool. One of the advantages of applying ratio analysis is that it is easy to use. either person that has basic business knowledge can retrieve the financial statements of a company and calculate its ratios. Nine additional advantages o f the use of ratio analysis are listed below assistive in finale making Helpful in financial analysis and planning Helpful in communication Helpful in coordination Helps in control Helpful in shareholders decisions Helpful in creditors decisions Helpful in employees decisions Helpful in governmental decisions (Svtuition, 2011). Another virtue of the use of ratio analysis is its comparability. The ratios of different companies can be compare to evaluate which firm is the better investment alternative. The five major categories of ratios are liquidity, financial leverage, asset efficiency, profitability, and market value ratios. Ratio analysis Qatar Telecom A ratio analysis of Qatar Telecom for the years 2011 and 2012 is illustrated below. 2011 2012 Net margin 18.71% 13.79% Earnings per share QR 14.80 QR 9.88 buffet on assets 5.82% 4.93% Return on equity 15.09% 12.60% Current ratio 1.01 1.05 Acid-test ratio 1.00 1.03 Working capital QR 304908000 QR 975749000 Debt ratio 0.61 0.61 De bt to equity 1.59 1.55 Qatar Telecom generated total revenues of QR 33.71 one million million million in 2012. The sales of the company increase by 6.14% in comparison with the preceding year. The firms net income in 2012 was QR 5.94 billion. The organization was able to increase its net income by QR 1.3 billion since the previous year. The net margin of the company in 2012 was 13.79%. The net margin is a metric that measures the haughty profitability of the company. It is calculated by dividing net income by total sales.