Vodafone Qatar Company’s Accounting and Finance Coursework

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Introduction

Financial statements are reports of an organisation’s budgetary operations. These statements display the outcome of accounting exercises during a fiscal year. They display the income and financial position of an organisation. Financial statements are prepared to demonstrate profit and loss operations and to evaluate the monetary position and income status on specific dates (Alcouffe & Gibassier 2018). Budgetary explanations or financial statements report the aftereffects of exercises (Aderemi 2017). In this manner, they are called the authentic records of an organisation. As a result, the statements furnish entrepreneurs with the essential information for deciding how well their investments perform. These announcements are brief reports intended to condense budgetary exercises for particular periods (Alcouffe & Gibassier 2018). Investors and stakeholders can utilise financial statement examination to assess the past and current financial operations of their business, analyse an existing money related issues, and gauge future patterns in the firm’s budgetary position (Aderemi 2017).

This paper will analyse the financial statement, financial objectives, and how it satisfies personal objectives. Consequently, the paper will appraise the accountant’s role in achieving the financial goals. Armed with this analysis, the paper will use Vodafone Qatar as its case study. The financial statement of the telecommunication company will be assessed to ascertain its performance. As a result, Vodafone’s financial performance will be tested using accounting ratios and investment appraisal methods. Finally, the paper will discuss the firm’s performance and its share price.

Vodafone Qatar is a telecommunication service provider with regional branches in the Arab Emirate. The telecommunication corporation provides mobile services and landline communication channels to millions of subscribers. It offers mobile products and postpaid services, voice and information transfer, call conferencing, and mass SMS transfer. The organisation provides convenient Internet, broadband subscriptions, which support new service-based client recommendations, and income flow. Vodafone Qatar was established in 2008 with its head office in Doha Qatar. It important to note that Ooredoo telecommunication is a rival service provider in Qatar.

Vodafone’s capital structure is based on its products, shareholders percentage, and innovation. For example, the demand for wireless data is a major source of revenue generation. The firm’s goal and objectives stretch beyond its services. The organisation believes in genuine investment in corporate social responsibility as it affects financial, natural, and social value (Alcouffe & Gibassier 2018). Vodafone’s commitment includes child safety, women empowerment, and public service. Vodafone’s central goal is to help clients and groups to adjust and flourish as new patterns and innovation reshape the world. Based on these assumptions, the company provides valid accounting reports in accordance with full disclosure standards (Alcouffe & Gibassier 2018). As a result, the firm’s financial statement shows detailed accounts of its stewards.

Vodafone’s capital structure describes how it funds its operations and expenditures using different avenues of income. Thus, shareholders consider short-term and long-term debts during payments. Despite challenging monetary conditions and expanding job insecurity, telecommunication investments seem to be appealing. Although revenue generated from its services is expanding, there is a market drive for wireless data technology.

Importance of the Financial Statement

Evaluate Business Operations

Financial reports cannot be inspected in a vacuum; however, they are contrasted with past articulation to decide changes to the organisation’s operations. Authentic survey permits the proprietor to categorise its success in the right context. Therefore, comparing present and past events enables its management to survey what has enhanced or declined, distinguish issues or regions of quality or shortcoming, and decides why income or costs might not have changed as expected (Alcouffe & Gibassier 2018).

Create Objectives for Future Projections

Vodafone’s past and present financial reports create indicators for future projections. In the event that Vodafone Qatar shows 10 percent growth in profit, the management could utilise that figure as a benchmark for resource allocation.

Aid Staff Assessment

The monetary statement gives a target device to evaluate staff productivity. Entrepreneurs frequently compensate representatives for their commitments to expand income and revenue (Bebbington & Thomson 2013). Regardless of whether the organisation provides incentives for staff performance, changes to employee remuneration should be considered based on performance (Avakmovic & Avakumovic 2016). Thus, financial reports provide an indicator for wage increase, staff rewards, and compensation.

An indicator for Decision-Makers

Vodafone’s financial statement can be used to examine business operations. However, the ratio analysis is a complicated process. By extension, financial ratios need to be incorporated with numerous monetary proportions, including approaches that enhance similarity with a goal to comprehend conceivable components (Bebbington & Larrinaga 2014). There are two issues in utilising financial reports for business analysis. Ratio procedure is a challenge in performance evaluation. Consequently, the subjective alternative of financial ratios to evaluate the firm’s performance is another challenge (Bebbington & Thomson 2013). This comprehension is vital because a single ratio analysis may invalidate the firm’s evaluation. Therefore, ratio analysis provides a comprehensive method for cross-examination.

Importance of Financial Statement Analysis

Financial statement analysis is imperative for various reasons, which include the shareholding, operational decisions, credit expansion and investment decision.

Shareholding

Based on the assumptions that investors are proprietors of the organisation, they may have to take choices, whether to end that agreement or provide additional funding. As a result, financial analysis is imperative, as it gives important data to support the investor’s decision-making process (Bebbington & Larrinaga 2014).

Operational Decisions

The company’s management control activities and operations of each transaction. By extension, they require regular evaluation of operations to assess its status. Thus, money related examination is essential to the firm’s management.

Credit Expansion and Investment Decision

Lenders are the suppliers of credit cash flow to the company. Therefore, lending institutions take decisions based on the firm’s financial analysis (Bebbington & Thomson 2013). By implication, financial statement examination gives critical data for loan approval. Potential investors are individuals who have surplus cash flow to put resources into different investments (Bebbington & Larrinaga 2014). They are required to choose whether to contribute their capital in the organisation’s offer. The financial statement investigation is imperative since they gather valuable data to assist the decision-making process.

Financial Objectives of Vodafone Qatar

Vodafone’s financial plan is a set of objectives that are measured in monetary value. Revenue generation is as important as service quality. Therefore, the organisation seeks to be a leading name in the Qatar telecommunication market. As a result, the financial objectives are designed to improve its overall performance. The organisation’s financial objectives are based on four principles. Vodafone’s financial objective includes revenue maximisation, capital maximisation objective, value maximisation and “others” maximisation objectives (Caron & Fortin 2014).

Revenue Objectives

Revenue is a theory in monetary hypothesis (Bebbington & Thomson 2013). In line with the economic theory, profit minimization is an objective for a competing firm. Ooredoo telecommunication is a major competitor in Qatar. Thus, Vodafone’s management should create conditions that would strengthen its financial base. Under these conditions, revenue maximisation as profit becomes a source of dividend for shareholders (Bebbington & Thomson 2013). Consequently, the power of rivalry enforces revenue maximisation for a firm to survive. Since profit is the distinction amongst income and expenses, once income and expenses are distinguished the supposition of profit objective empowers expectations to be made on daily operations and investment transactions. Additionally, given recognisable profits, the methods of traditional optimization facilitate the decision-making process. The conduct of the firm can be displayed as though the firm was amplifying profit (Bebbington & Thomson 2013). It has customarily been contended that the goal of an organisation is to generate revenue; therefore, the aim of financial management is to reduce losses and increase profit.

Capital Maximisation Objective

Capital maximisation objective enhances the net value of the firm’s investment (Caron & Fortin 2014). The net value of an investment is the contrast between the past and present estimation of its profit and expenditures. A business transaction that has a positive net value generates revenue for the organisation (Caron & Fortin 2014). However, a business transaction that has a negative net value should be rejected. Therefore, management should adopt operations that generate positive net value. Capital maximisation is conceivable by settling on choices that generate income, which surpasses its costs (Varley 2014). Since income is the contrast amongst revenue and expenses, profit maximisation promotes capital maximisation. The detachment of possession of service and the expansion in rivalry has prompted the redefinition of profit maximisation of Vodafone Qatar. As stated earlier, the essential budgetary target of corporate finance is profit maximisation for shareholders.

Since investors get their investment returns through profits and dividends, investor’s income will increase by expanding the estimation of profits and dividends (Avakmovic & Avakumovic 2016). Investor’s capital maximisation objective states that management should increase the present estimation of future investments. The present estimation is characterised as the current value of future cash inflow at a discount rate. The firm’s discount rate considers revenues accessible from elective venture openings during one fiscal year. Capital minimization objective also consider the risk alternatives for business investments. In the event that additional risk is associated with future monetary profit, higher rebate rate is embraced (Varley 2014). Since an organisation is a coalition of gatherings, which includes proprietors, managers, workers, providers, clients, income expansion should be shared based on their proportions. Thus, capital maximisation objective is based on the firm’s growth, shareholders welfare, dividend payment, risk valuation, future payments, earnings per share, and stock value (Avakmovic & Avakumovic 2016).

Value Maximisation Objective

Value maximisation objectives describe the firm’s goal to expand its shareholder’s equity. Vodafone’s shares traded in the stock market represent shareholders’ value. Thus, the objective is to amplify the market value of its shares. Therefore, the share price represents the company’s performance index. By extension, the firm’s capital increases when its share value is maximised. Based on this analysis, Vodafone’s corporate strategy is to improve its financial objectives, which generate profit and income. Thus, the management seeks to increase its share value.

Others Maximisation Objectives

Vodafone’s “others” maximisation objectives include sales, growth, return on investment, and social objectives.

The interests of the organisation are enhanced by its sales, which come with growth and development. Consequently, the firm’s size, brand differentiation, and innovation are associated with sales maximisation objective. The company’s administrators look for targets that give them fulfilment, for example, wage compensation, professionalism, income status, and security (Avakmovic & Avakumovic 2016). However, Vodafone’s shareholders are worried about the stock market price, ROI, and profit maximisation.

These contrasting arrangements of goals are accommodated by focusing on the company’s growth, which brings higher pay rates for directors, income, and share price for investors. The key point of a business venture is to generate returns on investment (ROI). Estimating verifiable performance on investment requires an evaluation of the revenue earned by capital utilised. The rate of return is dictated by partitioning net benefit or salary by the capital utilised or investment made to accomplish that income (Robinson et al. 2015). ROI analysis gives a solid motivating force for effective resource allocation (Avakmovic & Avakumovic 2016). It encourages administrators to acquire resources that will generate a positive ROI. In choosing among business investment and capital projects, the ROI gives an appropriate measure for appraisal of income of every proposition (Robinson et al. 2015). Vodafone Qatar is an essential industry of the nation (Avakmovic & Avakumovic 2016). The company returns the benefits and rights by encouraging child safety, women empowerment, and corporate social responsibility (Varley 2014). This analysis reveals the firm’s desire to sustain its role in the telecommunication industry.

Financial and Personal Objective Appraisal

Financial objectives are goals created by the business arm of an organisation. They contain numerical estimates with timelines for execution (Varley 2014). The financial objectives are based on four cardinal points. The firm considers cost minimization, cash flow, return on capital, and shareholders’ returns. Financial objectives improve coordination, efficiency, decision-making tool, evaluation tool, and benchmark for success. Based on this premise, Vodafone’s financial objectives align with other sectors of the organisation. Finance, human resources, operational factors, corporate objective, resource allocation, products, and services influence the financial objective (Caron & Fortin 2014). Consequently, suppliers, market factors, and competitors influence the firm’s objectives externally. It satisfies my personal objectives because it aligns with investments frameworks. Business sustainability relies on an effective management system. The system is controlled by resource allocation, which is the goal of the financial objective (Caron & Fortin 2014).

Roles played by Accountants to Achieve Financial Objectives

The responsibility of accountants in guaranteeing financial disclosure cannot be over emphasised. Accountants regularly put their jobs on the line in defending the honesty of financial reports (Caron & Fortin 2014). Vodafone’s auditors and accountants are responsible for the budgetary data created by the organisation. In summary, accountants in organisations subsequently have the errand of safeguarding financial reports where the numbers and figures are created. By extension, the accountants in Vodafone Qatar contribute to its financial objectives. Like their partners in tax assessment or evaluation, accountants in business assume critical part that improves stability and performance (Caron & Fortin 2014).

A skilled accountant in business is a priceless resource for the organisation (Weribgelegha & Egoro 2017). They employ an inquisitive personality to their work established on the premise of their insight into the organisation’s financial operation (Solovida & Latan 2017). Utilising their capacities and understanding of the firm’s financial environment, accountants make testing inquiries (Robinson et al. 2015). Their preparation in bookkeeping empowers them to embrace a businesslike and objective approach in analysing issues. It is an advantage in Vodafone where accountants align with international reporting standards. Accountants in business help with corporate procedure, advice, and enable organisations to diminish costs, enhance their best line, and alleviate risk (Cho & Kang 2017).

As board executives, accountants in business represent the interest of the proprietors of the organisation. Their parts conventionally include, administering the association, for example, endorsing yearly spending plans and bookkeeping to investors and deciding administration’s remuneration (Endrikat, Hartmann & Schreck 2017). Accountants have oversight over all issues identifying with the organisation’s monetary status (Cho & Kang 2017). This incorporates making and driving the fundamental bearing of the business to examine, create, and convey financial information. As auditors, accountants provide affirmation to the administration that the risk plan and management process are efficient and effective (Maas, Schaltegger & Crutzen 2016).

Defenders of Public Interest

One of the financial objectives of the organisation is to protect its shareholder’s interest. A description of the multifaceted roles of accountants includes the obligation to defend the firm’s investors (Weribgelegha & Egoro 2017). As a discipline that has been offered a position in the public arena, an accountant manages an extensive variety of issues that has public interest (Robinson et al. 2015). Based on this premise, accountants should be confident and trusted to create public value. By implication, accountants could lose their integrity as defenders of public interest if they operate on personal interest (Cho & Kang 2017). Thus, public confidence in the financial statements prepared by accountants forms the core principle of the firm’s financial objective (Endrikat, Hartmann & Schreck 2017).

Components of the Financial Statement

The data found in the financial reports of a company are the basis of business accounting. Financial specialists and loan institutions assess the organisation’s level of monetary strength using information from the financial statement (Weribgelegha & Egoro 2017). The components of the financial statement include the balance sheet, cash flow, and income statement. Information found in the financial statement is utilised to ascertain essential budgetary ratios that give understanding into how the organisation’s funds are being overseen and issues to address (Endrikat, Hartmann & Schreck 2017). Financial statements are reports of an organisation’s budgetary operations. These statements display the outcome of accounting exercises during a fiscal year. They display the income and financial position of an organisation. Financial statements are prepared to demonstrate profit and loss operations and to evaluate the monetary position and income status on specific dates. The balance sheet, cash inflow and income statement provides valid information concerning the firm’s performance and profit margin (Weribgelegha & Egoro 2017). Therefore, an investor can decide when to invest in the stock market.

The Balance Sheet

The balance sheet displays information concerning the firm’s worth (Endrikat, Hartmann & Schreck 2017). The statement reveals aggregates of the organisation’s profit, liabilities, and investors’ value.

Mathematically, the balance sheet = Liabilities + equity. The balance sheet shows all transactions approved by the organisation. As a result, the organisation can acquire assets using its equity or liability. The liability comes as loans and receivables. Rather than indicating single operations, the balance sheet displays at the end of one fiscal year. An increase or loss in asset is recorded in the firm’s balance sheet.

The Income Statement

An organisation’s income statement displays the level of income earned and the costs identified with generating that income. An organisation identifies net income from item or services and after that deducts anticipated costs from discounts (Endrikat, Hartmann & Schreck 2017). Expenses incurred during sales are subtracted from net income to achieve the gross benefit. Consequently, the firm’s operating expenditures are subtracted from the gross benefit, which gives the operating income (Robinson et al. 2015).

The Cash Flow Statement

The cash flow statement displays money inflow and outflow throughout the accounting period. This monetary statement features the change in net income of the organisation (Endrikat, Hartmann & Schreck 2017). By extension, the profit and loss values are records in the statement of profit and loss, which is the income statement.

Vodafone’s Ratio Analysis

Ratio analysis is a technique, which can be utilised to assess the record of business (Varley 2014). It is an imperative part of the examination because it gives quick and simple analysis. The analysis assists investors to decide if the association is accomplishing its objectives and likewise assesses how its rivals are performing.

Profitability Ratios

Vodafone’s profit margin can be assessed by utilising the profitability analysis. The firm’s profitability ratio proposes the ability to deliver positive returns for shareholders and investors, which can be appropriated as profit and some portion can be held for future tasks (Oliver, Vety & Brooks 2016). By extension, profitability ratios are the result of effective and successful strategy management. For an association’s growth and expansion, profit and efficiency are vital indicators (Endrikat, Hartmann & Schreck 2017). In this manner, Vodafone’s profitability ratio can be surveyed utilising its gross margin, operating margin, asset turnover, Return on Capital Employed (ROCE), Return on Shareholders’ Funds (ROSF), gross profit margin, operating margin, and net profit margin.

Vodafone’ Qatar Gross Profit Ratio

Gross profit margin is processed by taking net benefit. It reveals the level of gross profit achieved by the organisation on net transactions (Endrikat, Hartmann & Schreck 2017). Higher gross margin prompts productivity and growth (Journeault 2016). For this analysis, we will use the financial statements for four consecutive years. The fiscal report for 2014, 2015, 2016, and 2016 will be adopted for the performance evaluation.

Mathematically, Vodafone’s gross profit margin = Income – cost of income/income.

It is found that Vodafone’s gross profit margin dropped significantly, which indicates poor growth index. The profit margin in 2014 was 55.99%. However, it started dropping in 2015, 2016, and 2017. Gross profit margins for these years were 54.05, 29.41, and 37.32. In synopsis, high cost of operations influenced its crumbling gross profit ratio. The association should lessen its operating costs to have higher gross net revenue.

Operating Profit Ratio

The operating profit is the generated income for a fiscal year it describes the company’s profit after settling the production costs. On the average, the firm’s operating cash flow is 498 million.

Mathematically, the operating profit margin = Operating income/Total revenue

Vodafone operating profit for 2014, 2015, 2016, and 2017 were -11.12, 43.9, -19.57, and -11.81. The value demonstrates dwindling income before tax deductions and interest. This approach is more suitable than the gross ratio as the outcomes are precise.

Vodafone’s Net Profit Margin

The most utilised estimation for evaluating an association’s financial strength is the net profit margin. Net profit margin represents the value after subtracting the firm’s expenses and operating costs (Endrikat, Hartmann & Schreck 2017). The cost of operations includes all immediate and aberrant consumption gathered during the financial year (Robinson et al. 2015).

Vodafone’s Net profit margin = (Net profit /net sales) x 100

The organisation’s net profit margin was -12.41 in 2014, -9.36 in 2015, -21.97 in 2016, and -13.08 in 2017. Vodafone net margin indicates poor financial strength. The values indicate poor financial returns for four consecutive years. This has affected the dividend rate for shareholders and investors.

Liquidity Ratios

These proportions are acquired from the balance sheet report and tell how effectively Vodafone can pay its obligation. Financial institutions such as banks and capital fundraisers are especially keen on these proportions. A company’s liquidity proportion portrays its capacity to meet every money related commitment (Endrikat, Hartmann & Schreck 2017). By suggestion, Vodafone’s liquidity proportion exhibits the administration’s ability to finance its working expense. Along these lines, liquidity is central to the proficient running of a business (Weribgelegha & Egoro 2017). In the event that the association has poor liquidity, it is hard to repay loans over short and long-term investment. An association’s liquidity ratio can be surveyed utilising its debt to equity ratio, financial ratio, solvency ratio, quick ratio, and current ratios (Endrikat, Hartmann & Schreck 2017).

Vodafone Qatar Current Ratio

A company’s current ratio is the value between the present assets and current current liabilities. The firm’s assets and liabilities are essential components of the operating capital. A positive current ratio indicates the company’s willingness to meet all financial obligations during the current fiscal year.

Mathematically current ratio = Current asset/ current liabilities

Based on the analysis, Vodafone’s current ratio was 0.56 in 2014, 0.44 in 2015, 0.51 in 2016, and 0.66 in 2017. The value demonstrates a progressive increase from 2014 to 2017. It infers that Vodafone Qatar has a higher number of liabilities to pay than its income.

Quick Ratio

A vital indicator of a firm’s financial strength is their ability to meet short-term obligations. The company’s capacity to turn liquid assets into cash for short-term obligation or stress represents its quick ratio (Weribgelegha & Egoro 2017). Assets that are not changed into liquid cash are deducted from the association’s assets and liabilities.

Vodafone’s quick ratio = (Cash + marketable securities + receivables – inventories) / current liabilities

Based on the calculations, Vodafone’s quick ratio was in 2014 0.54, 0.41in 2015, 0.14 in 2016, and 0.64 in 2017. As earlier stated, the firm’s may not meet short-term obligations because of its fixed inventories. It explains Vodafone dwindling operating revenue.

Vodafone’s Degree of Financial Ratio

The capacity to use fixed assets and equity measures a firm’s liquidity ratio. It represents the degree of change in preferred equity. Based on the analysis, the financial ratio was 1.3 in 2014, 1.34 in 2015, 1.42 in 2016, and 1.41 in 2017.

Vodafone’s Efficiency Ratios

An association’s efficiency proportion is assessed using a standard estimation. The efficiency ratio is an income over the normal estimation (Endrikat, Hartmann & Schreck 2017). Therefore, the association makes a standard estimation for its investment and operations. Accounts receivable turnover, return on investment, operating expense ratio, total asset turnover, accounts payable turnover, inventory turnover, and average collection period are components of the efficiency ratio.

Receivable Turnover

Receivable turnover is the time allowed to account holders to meet their obligations. By implication, it measures the efficiency of asset utilisation. The receivable turnover can be computed by separating net operations from aggregate assets.

Mathematically receivable turnover = Total net sales/Average receivables

Vodafone’s receivable turnover was 7.61 in 2014, 8.91 in 2015, and 5.77 in 2017. The report indicates efficient asset utilisation. In 2017, Vodafone can collect its receivables in in 6 days.

Vodafone Asset Turnover Margin

Asset turnover margin measures a firm’s capacity to utilise its assets to generate money for the organisation (Endrikat, Hartmann & Schreck 2017). The firm’s asset turnover was 0.25 in 2014, 0.3 in 2015, 0.29 in 2016, and 0.3 in 2017. It was found that the asset turnover margin is 0.31 (Table 1).

Investment Appraisal

The agency and feedback theories suggest that performance affects a firm’s liquidity (Bebbington & Larrinaga 2014). There are numerous hypothetical reasons in accepting that liquidity influences the execution of the organisation. A firm’s securities provide liquidity and voting to mention a few. Based on these assumptions, Vodafone’s performance has not been encouraging in the last four years. The liquidity outlook has been deteriorating, which shows poor management and fierce competition. Investment strategies are built on the company’s stock value. Thus, the firm’s P/E ratio describes the firm’s growth rate. The P/E ratio when compared with S&P 500 is 20.8%. Vodafone’s stock share price was 9.30 QAR as at 20 April 2018. The firm’s share earnings data showed poor performance. The basic earnings per share were -0.29 in 2014, -0.26 in 2015, -0.55 in 2016, and -032 in 2017 (Vodafone Qatar QSC 2018). Consequently, the dividends per share were 0.17 in 2014 and 0.21 in 2015. The firm did not declare dividends in 2016 and 2017. The firm’s stock value can describe its performance.

Recommendations

Vodafone Qatar has been operating in the telecommunication industry for years. However, the firm’s financial strength has not been convincing. The firm’s balance sheet for four consecutive years shows poor performance. It indicates ineffective coordination and aggressive marketing. Although the organisation has a fierce business environment with competitors, brand differentiation should be a competitive advantage (Kock 2015). The organisation met its obligations in short-term investments. However, a new strategy for generating profit and returns of investment should be considered. This low financial status has affected the firm’s investment drive. Investors are not confident in the stock and may not encourage new lines to invest in Vodafone’s stock. Therefore, past performance may not give valid information about its future yield.

Vodafone’s forward strategy is a business procedure that includes a vertical integration whereby business exercises are extended to incorporate control of the immediate circulation or supply of the firm’s product and services. The Forward strategy is an operational procedure executed by an organisation that needs to expand control over its providers, producers, or wholesalers, so it can build its market control (O’Dwyer & Unerman 2016). For a forward strategy to be effective, an organisation needs should acquire or merge an alliance with small firms in the telecommunication industry (Kock 2015). Based on the analysis, it is recommended that investors hold their decision to invest in the organisation. In summary, the firm’s business operations need ideas and innovation. The market capitalization drive should be strengthened with effective strategies.

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Appendix

Table 1: Growth Profitability and Financial Ratios for Vodafone Qatar QSC. (Vodafone Qatar QSC 2018).

Financials
2014-032015-0320162017TTM
Revenue QAR Mil1,9822,3072,1192,0591,998
Gross Margin %5654.129.437.337.1
Operating Income QAR Mil-2201,013-415-243-224
Operating Margin %-11.143.9-19.6-11.8-11.2
Net Income QAR Mil-246-216-466-269-256
Earnings Per Share QAR-0.29-0.26-0.55-0.32-0.31
Dividends QAR0.170.21
Payout Ratio % *
Shares Mil845845845845844
Book Value Per Share * QAR7.056.666.045.595.29
Operating Cash Flow QAR Mil516650294407498
Cap Spending QAR Mil-344-404-263-248
Free Cash Flow QAR Mil172246294143249
Free Cash Flow Per Share * QAR0.010.340.170.39
Working Capital QAR Mil-330-493-463-277
Key Ratios -> Profitability
Margins % of Sales2014-032015-032016-032017-03TTM
Revenue100100100100100
COGS44.0145.9570.5962.6862.91
Gross Margin55.9954.0529.4137.3237.09
SG&A
R&D
Other67.1210.1548.9849.1348.31
Operating Margin-11.1243.9-19.57-11.81-11.22
Net Int Inc & Other-1.29-53.06-2.4-1.27-1.61
EBT Margin-12.41-9.16-21.97-13.08-12.83
Profitability2014-032015-032016-032017-03TTM
Tax Rate %
Net Margin %-12.41-9.36-21.97-13.08-12.83
Asset Turnover (Average)0.250.30.290.30.31
Return on Assets %-3.12-2.85-6.45-3.97-3.96
Financial Leverage (Average)1.31.341.421.411.39
Return on Equity %-4.07-3.76-8.88-5.62-5.57
Return on Invested Capital %-3.47-3.25-8.88-5.62-5.57
Interest Coverage-14.56
Key Ratios -> Growth
2014-032015-032016-032017-03Latest Qtr
Revenue %
Year over Year29.8116.4-8.12-2.86-1.03
3-Year Average28.4623.611.551.28
5-Year Average833.2144.8717.7811
10-Year Average
Operating Income %
Year over Year-25.03
3-Year Average
5-Year Average
10-Year Average
Net Income %
Year over Year
3-Year Average
5-Year Average
10-Year Average
EPS %
Year over Year
3-Year Average
5-Year Average
10-Year Average
Key Ratios -> Cash Flow
Cash Flow Ratios2014-032015-032016-032017-03TTM
Operating Cash Flow Growth % YOY57.8926.04-54.8238.42
Free Cash Flow Growth % YOY43.1819.39-51.19
Cap Ex as a % of Sales17.3617.5212.7912.42
Free Cash Flow/Sales %8.6710.6713.866.9712.47
Free Cash Flow/Net Income-0.7-1.14-0.63-0.53-0.97
Key Ratios -> Financial Health
Balance Sheet Items (in %)2014-032015-032016-032017-03Latest Qtr
Cash & Short-Term Investments1.272.031.872.573.19
Accounts Receivable
Inventory0.180.360.20.57
Other Current Assets3.942.884.925.424.85
Total Current Assets5.395.276.788.198.62
Net PP&E14.7617.7617.8618.7419.31
Intangibles79.7476.6972.6871.67
Other Long-Term Assets0.120.2975.360.390.4
Total Assets100100100100100
Accounts Payable6.092.57
Short-Term Debt
Taxes Payable
Accrued Liabilities
Other Short-Term Liabilities9.6711.8913.46.319.92
Total Current Liabilities9.6711.8913.412.412.48
Long-Term Debt12.36
Other Long-Term Liabilities0.9713.3416.1916.8715.68
Total Liabilities2325.2329.5929.2628.16
Total Stockholders’ Equity7774.7770.4170.7471.84
Total Liabilities & Equity100100100100100
Liquidity/Financial Health2014-032015-032016-032017-03Latest Qtr
Current Ratio0.560.440.510.660.69
Quick Ratio0.540.410.140.640.64
Financial Leverage1.31.341.421.411.39
Debt/Equity0.16
Key Ratios -> Efficiency Ratios
Efficiency2014-032015-0320162017TTM
Days Sales Outstanding47.9940.9863.2658.68
Days Inventory6.356.933.727.53
Payables Period293.7280.54113.27144.55
Cash Conversion Cycle-239.36-232.63-46.29-78.34
Receivables Turnover7.618.915.776.22
Inventory Turnover57.4752.6498.0148.49
Fixed Assets Turnover1.511.881.651.661.68
Asset Turnover0.250.30.290.30.31
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IvyPanda. (2020, December 10). Vodafone Qatar Company's Accounting and Finance. https://ivypanda.com/essays/vodafone-qatar-companys-accounting-and-finance/

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"Vodafone Qatar Company's Accounting and Finance." IvyPanda, 10 Dec. 2020, ivypanda.com/essays/vodafone-qatar-companys-accounting-and-finance/.

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IvyPanda. 2020. "Vodafone Qatar Company's Accounting and Finance." December 10, 2020. https://ivypanda.com/essays/vodafone-qatar-companys-accounting-and-finance/.

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