Financial Analysis Report Of Telus Corporation

Part A:

a) Name of company:

TELUS Corporation

b) List the products sold or service performed

Products:

telecommunications products

Services:

-internet access

-voice

-entertainment

-healthcare

-video

-IPTV television

c) Date of the Financial Statement

2017 and 2016

d) A list of five key ratios.

Current Ratio = Current assets / Current Liabilities

2017 = 2,880,000,000 / 5,190,000,000

= 0.555

2016 = 2,470,000,000 / 4,950,000,000

= 0.499

Debt to total assets = Total Liabilities / Total Assets

2017 = 21,290,000,000 / 29,550,000,000

= 72.047%

2016 = 19,790,000,000 / 27,730,000,000

= 71.367%

Basic Earnings Per Share

2017 = $2.46

2016 = $2.06

Gross Profit Margin

2017 = 51.28%

2016 = 52.13%

Profit Margin

2017 = 7.73%

2016 = 2.25%

Part B

TELUS corporation is one of the biggest telecommunications company in Canada. This company provide telecommunications services and products. This company has a big name in industries and many accomplishments, we already know that TELUS is great at many things but in some areas it need improvement as well. There are always strength and weaknesses of the every single corporation, nothing can be perfectly fine. The main financial strength of this corporation is that it has a brand reputation which is a really big asset - goodwill. Also, they have sufficient funds and resources available to buy the latest phones. Moreover, the corporation also have nonfinancial strength as well, which includes their advertising, it is really appealing and it is a biggest strength, it attracts people to their side by having cute animals in their tv commercials. Also, they share a strong customer relationship with their customers by providing discounts and best services. When we come to weaknesses the greatest financial weakness this corporation is facing is lowest market share. We can see that in our financial reports that it only have 22% of market share of cell phones in Canada. Another big weakness of this corporation is there is low inventory. They don't have what people want nowadays, mostly people nowadays want to buy iPhones but TELUS does not keep much of those in stock. Furthermore, TELUS operations are highly depended on Canada only, and it has limited across the world. TELUS is focusing on some strategies to solve problems that they are facing. They are investing in internal capabilities to build on a high performance around the world. They are focusing on growth markets of data and partnering with other companies.

Part C

I would definitely like to invest my $10,000 in TELUS Corporation. This is because, I have learnt many great things about the company through research and come with the conclusion that this corporation has huge success in the market, even though there are some weaknesses but the company is following really good strategies to overcomes those financial and non financial weaknesses. Looking at the ratios of the company I can one can conclude that this company is doing really well. As comparing the current ratio of years 2017 and 2016, in 2017 corporation is improving because it has more current ratio in 2017 (0.555) than year 2016 (0.499) which shows that company has more ability to pay its current liabilities with its current assets. In addition, we can see that in year 2016 has less debt ratio compare to, 2017 which is a good indication because this difference between debt ratios says that company's assets that are financed with debt has decreased. We can also see that basic earnings per share has increased from 2016 to 2017 which means company’s share value is increasing. Moreover, there is an increase in profit margin in 2017 compare to 2016 which signals an improvement in both operational efficiency and profitability. So, overall looking at the analysis of the company I come to the point that spending my $10,000 will definitely lead me to success and provides benefit in future.