Corporate Finance System of Vodafone

Figure 10
Dividend payment of Vodafone as a percentage of net profit/loss (Source: Money.CNN.com)
Figure 11
Dividend payment of AT&amp.T as a percentage of net profit/loss (Source: Money.CNN.com)
Figure 12
Dividend payment of Verizon &amp. BT as a percentage of net profit/loss (Source: Money.CNN.com)
Figure 13
Total Current Assets of Vodafone (Source: CNN Money)
Figure 14
Total Current Liabilities of Vodafone (Source: CNN Money)
Figure 15
Current Ratio of Vodafone
Figure 16
Cash Ratio of Vodafone
Figure 17
Total Assets and Total Liabilities of Vodafone (Source: CNN Money)
Figure 18
Vodafone’s withdrawal from committed facilities in 2004, 2005 and 2006 (Source: Vodafone Annual Report 2008. pp57)
1.0 Executive Summary
This report is a comprehensive analysis of the corporate finance system of Vodafone. The analytics presented here is based on the published information by Vodafone on their corporate website and independent market information about the organisation from global financial analysis organisations.
Overall, Vodafone is a large group with multiple legal entities. However, the CEOs of all the legal entities report to the group Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) manages consolidated finance for the group. The analysis presented herewith is pertaining to the consolidated finance of entire group and not of their individual legal entities.
The entire analysis is divided into five chapters.
The first chapter deals with the background information about the company whereby their corporate objectives, details about finance division, sources of finance, shareholder analysis, and corporate governance have been presented in brief.
In the second chapter, the systematic and unsystematic risks associated with Vodafone and…
The first chapter deals with the background information about the company whereby their corporate objectives, details about finance division, sources of finance, shareholder analysis, and corporate governance have been presented in brief.
In the second chapter, the systematic and unsystematic risks associated with Vodafone and the global telecommunications industry as whole. The risk reports have been taken from Ernst and Young’s assessment of global telecommunications industry risks, Deloitte’s report on Vodafone’s risks (published on the website of Vodafone) and the 2008 annual report of Vodafone.
In the third chapter, the Capital Structure of Vodafone and have compared the same with old theories that have been accepted by accounting community largely. The Debt to Equity ratio of Vodafone is compared with similar companies in the telecommunications industry and the results are analyzed. The last part of this chapter deals with application of dividend payment theories in these companies.
In the fourth chapter, the empirical theories of Working Capital management of firms and the usage of Money Markets has been presented with the help of literature review. Thereafter, the working capital management of Vodafone and their usage of money market instruments have been analyzed.