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Accounting Decision Making

Autor:   •  December 17, 2017  •  830 Words (4 Pages)  •  863 Views

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As for this week Telstra share price are slowy going down there was no major increase or decrease with just a few point difference this week share price opened with

(A$ 5.88) on 24/08 . For the S&P/ ASX All Ordinaries has suffered its worst one day fall in 4 years this is because of the effect in the share market the Shangai composite has suffered a major turndown ( ABC ,2015).As a result Telstra share price was also not doing well this could be the impact of the S&P /ASX All Ordinaries the closing price on Friday 28/8 was (A$ 5.82 ).

WEEK 4 (31/08/2015 – 4/09/2015

The last week of observation , shows some rise and falls in the share price for Telstra , as for the S&P/ ASX and All Ordinaries has opened very low on the 1/09 this is due to the economic downturn as well for the share market which is impacted by China on the domestic economy ( The Age ). The share price for S&P and ASX All Ordinaries started 31/08 with 5207.00 closed with 5040.00 on 4/08.

[D] Calculation of the Gain/Loss

[pic 3]

Telstra Corporation Limited [pic 4]

Buy : A$ 6.11 x 818.33 = A$ 4999.99

Sell : A$ 5.61 x 818.33 = A$ 4590.83

Gain : A$4590.83 – A$ 4999.99 = A$(409.16)

[E] Recommendation for the company Shares

Telstra Corporation Limited

According the data from [C], Telstra has been going through a slump period. the positive sight here is with new CEO Andrew Penn Telstra is taking every move to improve . We recommend selling the share at the highest point and buying it back when it reaches at the lowest point to get more profit rather than waiting for dividend per-month as Telstra is a stable company.

Details

Qantas Airways Limited

Telstra Corporation Ltd

Revenue / Sales

A$ 13,722 m

A$ 25,320m

Interest Expense

A$ 272 m

A$ 957m

EBIT

A$ 468 m

A$ 7,185 m

Net Profit Before Tax

A$ 178 m

A$ 6,228m

Net Profit After Tax

A$ 116 m

A$ 4,549m

Current Assets

A$ 5,832 m

A$ 10,438 m

Total Assets

A$ 19,910 m

A$ 39,360 m

Current Liabilities

A$ 6.241 m

A$ 8,684 m

Total Liabilities

A$

A$ 25,400 m

Total Equity

A$

A$ 13,960 m

[B] Ratio Analysis

Liquidity Ratios

Telstra Corporation Ltd

Current Ratio

Current Asset

Current Liabilities[pic 5]

[pic 6]

[pic 7]

Financial Stability Ratios

Qantas Airways Limited

Telstra Corporation Ltd

Equity Ratio

Total Equity

Total Assets[pic 8]

Cant use this

[pic 9]

[pic 10]

13,960

39,360 [pic 11]

Debt Ratio

Total Liabilities

Total Assets[pic 12]

[pic 13]

[pic 14]

8,684[pic 15]

39,360

Interest Coverage [times]

EBIT[pic 16]

Interest Expense

[pic 17]

7185 [pic 18]

957[pic 19]

Profitability Ratios

Ratios

Qantas Airways Limited

Telstra Corporation Ltd

Return On Total Assets

EBIT[pic 20]

Total Assets

[pic 21]

7185[pic 22][pic 23]

39,360

Profit Margin

EBIT

Sales[pic 24]

[pic 25]

7185[pic 26]

25320 [pic 27]

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