Financial Analysis For Telstra Corporation Limited
Company Description
Telstra is Australia's leading telecommunications and information services company; with one of the best know brands in the country. They offer a full range of services and compete in all telecommunications markets throughout Australia, providing more than 10.3 million Australian fixed line and more than 6.5 million mobile services.
Telstra is the descendant of a merger of Telecom Australia, the government-owned monopoly communications carrier, Telstra was partially privatised by the coalition government in the late 1990s, but it is still 51% owned by the government.
Based on their business mission statement and goal, Telstra kept a stable development in telecommunication services industry with continuing a revenue growth for the past 10 years, however, When we step further into analyzing, we know that face the uncertain risk, Telstra is not so far strong as before, here, we would try to find out the answers through analysis on its financial statements for the latest two to three years.
English: 2004 Toyota HiAce vans owned by Telstra.
English: Store in the in , New South Wales, Austra...
TL - Cabin1 PorchEvaluate cash flows
CASH FLOW
06/94 06/95 06/96 06/97 06/98 06/99 06/00 06/01 06/02 06/03
Receipts from customers (m) 12,810 13,691 14,526 15,068 16,709 17,603 18,533 21,023 22,291 22,511
Increased percentage of year 1994's 0 6.87% 13.40% 17.63% 30.44% 37.425 44.685 64.11% 74.01% 75.73%
Net Operating Cashflows (m) 4,197 5,286 4,511 5,254 5,635 6,574 6,547 6,599 7,098 7,057
Increased percentage of year 1994's CFO 0 25.95% 7.48% 25.18% 34.26% 56.64% 55.99% 57.23% 69.12% 68.14%
Net Investing Cashflows (m) -2,132 -3,109 -3,870 -4,171 -3,609 -4,064 -4,896 -6,370 -3,258 -2,492
Net Financing Cashflows (m) -2,530 -1,357 -1,337 -1,572 -1,808 -2,484 -1,881 94 -3,817 -4,317
One thing that's noticeable above all is the very strong operating cash flow that TLS generating. From year 1994 to 2003, cash flow from operation (CFO) is significantly increase, mainly contributed from revenue receipts from customers.