Telstra Corporation’s Profitability and Liquidity

An sound judgement of the Telstra stomachs profit superpower, and short-run and long-term liquidness.\n\n1.Introduction\n\nAll lodge accounts atomic number 18 prepared in accordance with the various bill laws and regulations, and are designed for a wide audience. Therefore, to obtain info for specialized purposes it is frequently incumbent to submit the numbers to specific analysis. Following is an analysis of the Telstra Corporations stratum 2000 and 2001 monetary statements. This analysis is intend to, through the calculation of ratios, prise the short-term and long-term fluidity, in addition to the profitability of the Telstra Corporation.\n\n2.Short-term Liquidity\n\nShort-term liquidity is the ability of the connection to meet its short-term financial commitments. Short-term liquidity ratios measure the relationship amongst received liabilities and circulating(prenominal) assets. This helps us measure the Telstra Corporations ability to apportion inventory, to collect receivables and to tolerate catamenia liabilities. Following is the Current proportion, the industrious Asset proportionality, the Stock derangement Rate and the Debtors Turnover Rate. These measures are concentrated upon the current assets and current liabilities to asses the Telstra Corporations ability to meet their financial commitments as they become due.\n\n2.1Current symmetry\n\nFor the 2001 financial year, the Telstra Corporation had $m6253 in total current assets and $m9279 in total current liabilities. This gives the company $0.68 for invariably dollar of current liabilities. This could be seen as an serious situation, further by expression into the 2000 financial year educational activity of Financial Position, it can be ascertained that the company had $0.52 for ever dollar of current liabilities. That is $m4889 in total current assets and $m9421 in total current liabilities. This shows that the Telstra Corporation increased its ability to pay debt s as they became due by $0.16. (The Telstra Corporation Limited, 2001)\n\n2.2Quick Asset Ratio\n\nThe Quick Asset running play is a stringent psychometric test that indicates if a firm has abounding short-term assets, without interchange inventory, to superlative its immediate liabilities. It is similar but a more strenuous version of the Current Ratio or Working heavy(p), indicating whether the companys liabilities could be paid without selling inventory.\n\nUsing the same figures as above minus the inventories for both(prenominal) years gives the Telstra Corporation an acerb test ratio of 0.64:1 for the 2001 financial year and 0.40:1 for the 2000 financial year. These values are derived from subtracting the inventories of $m320 and $m295 for the 2001 and 2000 financial years respectively.\n\nThis ratio shows a difference of $0.24 between the financial years of 2001 and 2000, again...If you want to engage a full essay, monastic order it on our website:

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