Home > Free Essays > Business > Financial Management > Saudi Telecom Company’s Financial Modeling
Rate

Saudi Telecom Company’s Financial Modeling Research Paper

Exclusively available on IvyPanda Available only on IvyPanda
Updated: Jul 7th, 2021

The financial projections of Saudi Telecom Company (STC) are developed for the next three fiscal years including 2019, 2020, and 2021 on an annual basis. The company’s stock symbol is STC, and its last reported financial statements were for the year ended on December 31, 2018. The financial projections are prepared by calculating the growth rates of different elements of the three financial statements including balance sheet, cash flow statement, and income statement based on the last three-year data including 2016, 2017, and 2018 (Saudi Telecom Company – consolidated financial statements 2017; STC – condensed consolidated financial statements 2018).

In this financial modeling, annual growth rates are used for estimating the financials of each year. For this purpose, simple annualized rates were used, and in some cases, average growth rates were also used. The projected income statements are developed by estimating the revenue growth rate and the proportion of costs and expenses to the company’s sales. The annual values of assets, liabilities, and equity are estimated as the closing values of the year. The company’s total assets are projected based on the historical growth rate, and other financial elements are estimated based on their proportion to assets. Similarly, annual operating, financing, and investing cash flows are calculated, and the net change in cash is reported as the sum of the three types of cash flow. The current stock price of STC is SAR107.6 (Saudi Telecom Co. – overview 2019), and it is noted that the future estimated price will range between SAR90 and SAR95.

It is indicated that the net profit of the company is expected to increase in 2019 and then decline in 2020 and 2021. The netbook value is estimated to decrease in 2019 and then increase in the next two years. Moreover, the cash flow statement shows that the company will have negative net cash flow in the first two quarters of 2019 and then there will be positive cash flows. The company’s cash position is expected to improve in the next years. The sensitivity analysis has been carried out based on different growth rates of revenue, gross profit margin, SG&A expenses, and other income. It is estimated that the company will remain profitable in all three scenarios that are base, best, and weak.

Reference List

Saudi Telecom Co. – overview 2019, Web.

Saudi Telecom Company – consolidated financial statements 2017, Web.

STC – condensed consolidated financial statements 2018, Web.

This research paper on Saudi Telecom Company’s Financial Modeling was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda.
Request the removal

Need a custom Research Paper sample written from scratch by
professional specifically for you?

Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar

certified writers online

Cite This paper
Select a referencing style:

Reference

IvyPanda. (2021, July 7). Saudi Telecom Company's Financial Modeling. Retrieved from https://ivypanda.com/essays/saudi-telecom-companys-financial-modeling/

Work Cited

"Saudi Telecom Company's Financial Modeling." IvyPanda, 7 July 2021, ivypanda.com/essays/saudi-telecom-companys-financial-modeling/.

1. IvyPanda. "Saudi Telecom Company's Financial Modeling." July 7, 2021. https://ivypanda.com/essays/saudi-telecom-companys-financial-modeling/.


Bibliography


IvyPanda. "Saudi Telecom Company's Financial Modeling." July 7, 2021. https://ivypanda.com/essays/saudi-telecom-companys-financial-modeling/.

References

IvyPanda. 2021. "Saudi Telecom Company's Financial Modeling." July 7, 2021. https://ivypanda.com/essays/saudi-telecom-companys-financial-modeling/.

References

IvyPanda. (2021) 'Saudi Telecom Company's Financial Modeling'. 7 July.

More related papers
Psst... Stuck with your
assignment? 😱
Hellen
Online
Psst... Stuck with your assignment? 😱
Do you need an essay to be done?
What type of assignment 📝 do you need?
How many pages (words) do you need? Let's see if we can help you!