Financial Ratio Analysis - Activity 7

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Activity 7 - Vodafone ROTA

Let's repeat these calculations, for Vodafone this time and see what we find for them.

Consolidated profit and loss account	31 Mar 2002	31 Mar 2001
	£m	£m
Profit before interest and taxation	-12,694	-6909
Total Fixed Assets	153,462	154,208
Total Current Assets	9,438	18,182

Fill in this table for Vodafone:

ROTA For Vodafone
31 March 2002	Profit before Interest and Tax Total Assets	____________	= _____%
31 March 2001	Profit before Interest and Tax Total Assets	____________	= _____%

Did you get this?

Our conclusions? Vodafone's interest and tax situations are not a major factor here but Vodafone's main problem is its operating costs - they eat up all and more of its operating profit. We need to keep an eye on this because they can't sustain this situation for too many years.

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