Financial Ratio Analysis - Activity 7 - Vodafone ROTA

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.

You can now attempt an additional question or move on to the next topic.

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