We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Finance and Accounting - Essay Example

Comments (0)
Summary
Finance and Accounting
The companies chosen for the financial analysis are Vodafone Qatar and Qatar Telecom (Qtel) also known as Ooredoo. Vodafone and Ooredoo are the only two telecommunication service providers within Qatar…
Download full paper
GRAB THE BEST PAPER

Extract of sample
Finance and Accounting

Download file to see previous pages... Both these ratios address the bankruptcy issue. According to the calculated ratios, Qatar Telecom’s liquidity position seems to be strong as compared to Vodafone in both the years 2010 and 2011. Qatar Telecom’s personal liquidity ratios have deteriorated in 2011, compared to 2010, but then even the company has a stronger position as compared to Vodafone, which almost has balanced proportion between its current liabilities and its current assets. Vodafone’s personal current and acid test ratio has reduced in the year 2011 and it currently has a ratio of 0.49:1 and a 0.48:1 current and acid test ratio. Gearing Ratios Gearing ratios analyze the proportion of debt to equity within the financing of a company. These ratios illustrate as to how much a company is financed via and how much via equity. A company having more loans and less equity is said to be highly geared and is considered to be more risky but having said that, it can never be stated that a low geared company is good, since it is considered to be taking less initiative, hence a balance is to be maintained. According to the calculated ratios, Qatar Telecom is highly geared as compared to Vodafone. The ratios clearly illustrates that the Qtel’s debt financing is 1.59 times its equity financing. Qtel has reduced its debt financing by paying off some of its debt as compared to the year 2010 but this has not been a significant reduction. Qtel’s debts almost amount to 61% (0.61) of their total assets, hence it can be seen that the company has heavily relied upon debts. Vodafone on the other hand has too little debt financing and it can be seen from the ratios that the company prefers equity financing over debt financing. As...
By June 2008, Vodafone received was awarded telecom operating license within the country, making the company as the second mobile phone service provider within the country. Vodafone started its services within Qatar on 1st March 2009.
This ratio provides an idea to the investors as to the return that that would extract from the company. The return on investment for Qtel has improved and has increased by 1.79% (5.82-4.03). Vodafone’s return on investment has also improved but the company’s losses would not be able to make them give any good to their investors.
Since both the companies operate within the same sector, a fair comparison between the performances of the two would be more fruitful. The best technique available to analyze the financial performance of both the companies would be to use ratio analysis. There are various ratios which can be used to evaluate the performance. Following are the ratios which have been calculated to assess the financial performance of both the telecom service providers.
From the ratios, it can be derived that the financial performance of Qtel is way better than Vodafone but it can be argued that Vodafone is still within its early and growing phase and that the company has shown good prospects, hence it can improve with the passage of time. ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Finance And Accounting
The realized return of a stock consists of two major components which are i) dividend and ii) capital gain or loss (Navarro, 2005). The dividend is referred to a portion of the earnings of a company. It is usually distributed to the shareholders as per the direction that is given by the board of directors of the company.
2 Pages(500 words)Essay
Finance and accounting
Finance and accounting Name: Course name: Course instructor: Date: Introduction According to Judge Holmes presentation on finance and accounting, accounting is a type of business function which basically involves recording and also reporting financial information for the internal and the external users.
3 Pages(750 words)Essay
Health Finance and Accounting
Indirect costs, also termed as overhead, are merged with direct costs in this model. Concurrently, traditional costing is the process of allocating manufacturing overhead to products in accordance to a volumetric metric (Lal, 2009). The volumetric metric is measurable in hours of production machine or direct labor.
3 Pages(750 words)Essay
Finance and Accounting Concepts
Finance and Accounting Concepts Introduction Accounting concepts play an important role in recording the financial transactions and is a discipline that provides certain information related to financial transactions. Accounting provides important financial information to a wide range of potential users who are able to make several economic decisions for the allocation of economic resources.
8 Pages(2000 words)Essay
Finance and Accounting Essay
Secondly, the fact that the enhanced disclosure is as well not enough and finally, there is the objective of realizing an improvement in the quality and the comparability of the financial reporting. During the analysis of the lessee’s financial position, it is evident that many users tend to want to capitalize operating leases through adjustments made to the reported financial information.
4 Pages(1000 words)Essay
Finance and Accounting
The analysis will be based on the annual reports for both companies for the year ended December 31, 2005 and December 31, 2006. The financial statements of Nestle Company and Hershey Company provide the accounting picture in terms of the financial position known as the balance sheets and usually taken as the snapshots at a point in time including the operations of Nestle and Hershey Company known as the income statement serving as the movie over a time period.
8 Pages(2000 words)Essay
Finance and Accounting
The decision makers of both the private companies and public bodies do not recognize the economic significance of the natural resources and the need of environmental performance. Apart from market reputation, there exist few incentives to
11 Pages(2750 words)Essay
Finance and Accounting
The author of the essay illustrates the peculiarities of finance and accounting. Besides, it is stated that according to the COSO framework, internal controls are normally based on five main components, which include the control environment, information and communication, monitoring, control activities and risk assessment.
1 Pages(250 words)Essay
Finance and Accounting
k financial institutions, employees and government agencies especially the tax department., Potential investors, shareholders and any other interested party. Finance and accounting professionals determine how, when, and why a business should invest its resources (Ryan, 2004,
8 Pages(2000 words)Essay
Finance and Accounting
As tyhe report stresses adjusted present value approach is a capital budgeting technique that is used to value a firm that borrows debt. The technique starts with computing the value of the firm without the debt. Secondly, the technique values the firm with debt then considers the effect of the debt value both cost of borrowing and benefits.
2 Pages(500 words)Essay
Let us find you another Essay on topic Finance and Accounting for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us