FInancial Analysis

Essay by distractingsamUniversity, Master'sB, October 2012

download word file, 16 pages 0.0

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Financial Statement Analysis of IDEA Cellular

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Table of Contents

Title Page No.

Executive Summary………………………………………………........3

Company Overview……………………………………………………….3

Time Series Analysis…………………………………………………...4-9

Cross sectional Analysis………………………………………………9-18

Du-Pont Analysis…………………………………………………….…18-20

Common Size Statement………………………………………….20-21

Introduction to Working Capital…………………………………...22

Working Capital Cycle……………………………………………….23-25

Recommendation………………………………………………………….25

Bibliography…………………………………………………………………..26

In today's world cutthroat competition prevails everywhere. These days, the management has to perform variety of functions and responsibilities. Theoretical knowledge of such function and responsibilities can be obtained in the institute. But practically when this knowledge is applied in the corporate world, the managers face many difficulties. The project deals with an overview of the different aspects of the Financial Analysis of IDEA Cellular, by comparison of its ratios with those of its competitors like Airtel and Reliance Communications and interpretation of its data with respect to the profitability or investor-friendliness of the organisation with suggested remedial measures of further improving the financial condition. We have analysed the financial statements using Time Series Analysis, Cross-Sectional Analysis, and Common Size Statement Analysis.

The IDEA Cellular is one of the largest wireless telephony companies in India operating in about 22 telecom circles in India and is ranked the third in India in terms of the number of subscribers after Airtel and Vodafone.

IDEA has a subscriber base of about 58 million. It is the first organisation to offer most customer-friendly and competitive prepaid offerings in the country ranging from basic voice & Short Message Service (SMS) services to high-end value added & GPRS services such as Blackberry, Datacard, Mobile TV, Games etc

"IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007.

IDEA Cellular is a leading GSM mobile services operator in India with over 53 million subscribers, under brand IDEA. It is a pan India integrated...