September 14, 2016 at 3:19 pm
@iq2k16 – in principle that sounds fine. You will need to justify your choice and show that you are using the data to make useful comparisons setting out the limitations of your approach. You might need to use the group data when it comes to share price and earnings per share (also possibly gearing too) as you should try to have some investor ratios but briefly explain the basis behind your calculations. It is often the trends in the data that are important and of course what has driven the ratios. As these underlying reasons behind the figures are what are really important focus on strengthening the links with models when doing the evaluation of the main company.
Noted!Thanks 🙂September 18, 2016 at 6:26 am
I am not sure if this question has been answered before so if it has, please guide me to the link.
I am comparing Delta Airlines with United and using 10K reports. There are two types of Financial Statements in the Annual Reports of United. One type has (in millions, except share data) under the heading and the other type only has (in millions). I want to know what is the difference between these two and is the (except share data) one is acceptable for basing ratios on? I have already done half ratios and now I am thinking if it would affect my passing the RAP.
I would be really grateful for any help as I believe I still have time to correct if needed.
Also, I could not find only (in millions) type of statements for Delta. Thoroughly confused
Any help or clarification would be appreciated.
Thanks in advance!
Regards.September 18, 2016 at 8:19 am
There are two types of Financial Statements in the Annual Reports of United. One type has (in millions, except share data) under the heading and the other type only has (in millions). I want to know what is the difference between these two and is the (except share data) one is acceptable for basing ratios on?
I don’t understand your question – something seems to be missing in your explanation here. So one has share data and the other doesn’t – but how does that affect the revenue and profit?? Surely data about shares is only required for the investor ratios section so what is the problem???
Remember as pointed out dozens of times in Using an Airline for Topic 8, you need to get away from the notion that your analysis should be all about calculated ratios and adopting a textbook approach. KPIs actually used in the industry for measuring efficiency are just as important and should not be ignored.September 22, 2016 at 11:23 am
is it ok to use two companies in different countries for topic 8?September 23, 2016 at 7:11 pm
Hello, I wouldlike toknow if Telecoomunications can be network providers rather than mobile phone providing company
for example, iwould like to know can i use MTN Uganda Ltd as my organisation??September 24, 2016 at 1:52 pm
my mentor suggested me to draft 4 years financial statements of both the competitor and my main company.
I have already done so, and have calculated ratios through formulas plus the graphs as well.
I just want to confirm whether what my mentor guided me to do is right or not?
Your help will be really appreciated.
ThanksSeptember 24, 2016 at 3:47 pm
When doing the financial analysis against the competitor is it necessary to compare the results throughout the 3-year period or would it suffice to do a comparison on the latest FY only? I was advised that given the word count limit, a comparison of a single FY (being the latest FY) to be enough. Thank you.September 24, 2016 at 3:54 pm
@paidah Giving my 2-cents. I guess the compatibility of financial statements for comparison purpose (such as UK vs US or UK vs EU IFRS) rather than geographic issue will be more of a concern. Although you should also consider if the geographic issue affects the comparability of the financial results which may be particularly relevant for certain industry as such telecommunication.October 2, 2016 at 8:02 pm
which ratios do you recommend for topic 8 airline industry?October 2, 2016 at 11:51 pm
@farhana001 – please see our forum topic Using an Airline for T8 (currently only.2 of our forum topic list) as I have made suggestions there. I try to keep all relevant questions and answers on the appropriate forum topic. This then makes it easier for everyone to find them so please look for the forum topic most suited to your query going forward.October 3, 2016 at 12:05 pm
HI, Is Astrazeneca a competitor of GSK?October 16, 2016 at 11:56 pm
@trephena – I am using AT&T, but the problem is that it is hard for me to get enough information about the mobile segment of the company. In other words, it is hard for me to segregate and make the comparison with Verizon because there is not much information online about the mobile segment of AT&t. I almost finish PART 3 of my project, but it is merely information from the group company on the whole. I received tonnes of information online from the experts, financial analyst, the annual reports, articles….but all related to the group on the whole. The only good thing is that AT&T published their financial about the different segment. How best can I approach this situation given that OBU requested to report on the Mobile Telecommunication Industry?October 17, 2016 at 11:44 am
@Hamasah – really do not like recommending particular companies – as it depends on availability of information and many other factors (and I just do not have the time to do the research!) – discuss it with your mentor as that is what you are paying them for!
@kennard – Go for the group level then and discuss the issues in the Limitations. You have GOT to use external info otherwise your report is unbalanced and you will be failed on Evaluation &Analysis and Information Gathering. If more info /better data is available for Verizon why not make that your main company?October 17, 2016 at 6:18 pm
Thanks Trephana, I think it’s best that I use Verizon Wireless because they are indeed more focus on the mobile side and I saw more external info about it. It’s going to take a lot of my time but it worth it.October 22, 2016 at 12:54 am
Please i need some help. Should i do an in depth analysis for my comparator as i have for my main company?October 27, 2016 at 7:01 am
It won’t be quite so in depth but a etailed understanding of the comparator. coompany is desirable so that the commentary does not just describe increases and decreases as this is not adequate analysis.October 28, 2016 at 2:22 am
thanks so much TrephenaNovember 1, 2016 at 10:48 pm
My business analysis I am using the PESTEL and SWOT models
1)Am I supposed to evaluate these or this has to be done for the financial analysis? Most of these are self-explanatory from the CEO’s statements for example “An increase in airport taxes has resulted in Ryanair closing bases in Spain. If many governments were to raise their taxes, this would affect the profitability of Ryanair and its growth prospects” will that be a good explanation?
2) Some of the external factors and threats are very related to save word count is it okay for me to say that rise in taxes been discussed on the PESTEL analysis?
3) The definitions for the SWOT and Pestel were sometimes too small to paraphrase, I have referenced them, but will be in trouble if most of them have been not exactly copied and pasted but close to but properly referenced.
4) A copied a diagram for the PESTEL on google pictures, how do I reference it?
5) When using Annual report is that okay if I cite as (Ryanair,2016) or it should be (Annual Report,2016). If I have cited it many times I should only put on the reference list once?November 2, 2016 at 1:09 am
1. Start Part 3 with the models -the tax thing is a threat and your explanation is fine (although I would probably word it differently as ‘uncertainty over governments raising local airport taxes’
2. Don’t do this – give proper referenced reasons all the time and cut out all the superfluous stuff about why you chose the topic and the difference between primary and secondary data if you need to save words.
3. You should always try to express things in your own words if you can’t you must use quotation marks as well as a reference
4. Probably no need to reference if just a template
5′ Either of these in the text (preferably with page number) is acceptable and only one reference in the list (see my Golden Rules artcle on our homepage http://www.opentuition.com/obuNovember 2, 2016 at 4:02 pm
Thank you for your responses they have been really helpful.
Two other question, If I do ratios, is it allowed for me to compare them to analyst reports, likeThompson Reuters and Morningstar.
When they request us to look at journal article are they the same as Wall Street Journal? I also had a look at analyst reports, they mainly focus on future forecast and ratios?November 11, 2016 at 10:24 pm
Shall I upload the balance sheet and profit and loss of the main company in pdf and of competitors also another one, can I unite them in 1pdf ?
Because I have to upload 3 appendices :
1) first -Ratio calculation with FS extracts of both companies
2) second-One pdf with Balance Sheet and Income Statemenst of my chosen company
3) third- second pdf with Balance Sheet and Income Statement of my competitor
Furtermore, as Take INc . stat. and balance sheet from the annual report 2015 which is about 300 pages, I think I will print only that pagesof financ. statements, print and then scan as pdf seperately or together of both companies ???????November 12, 2016 at 8:30 am
If you can get them in one file this would be better. You only need the relevant pages (income statements and balance sheets).December 14, 2016 at 9:08 pm
I am currently doing my evaluation and analysis project for topic 8.
I am working on Excel with ratios (do the ratios been referenced in the Excel, i mean where i found them) or i can use whatever ratios under lets say profitability, liquidity, capital and efficiency? I used 12 ratios which i developed the graphs from my main company and also for benchmarking!
I saw that some ratios that i calculated had different results as from websites as FT and morningstar, is it going to have any effect that? Roce i used= earnings before interest and tax/total assets – current liabilities!
Also, every graph which i will include in my project need to say below eg. Profitability Ratios (Appendix 1)?
Thank you, i hope you understand what i mean!December 16, 2016 at 11:00 am
Sorry but your query is not very clear so I am having difficulty in understanding the main issues here….
If your ratios,are different from published ratios then mention this in the limitations section. Sometimes the differences are only minor and therefore not really significant.
Do your calculations in the Excel spreadsheet and load it as,an appendix on submission. Reference the figures you use to either the original source or your appendix Excel worksheet.February 19, 2017 at 1:38 pm
Dear Trephena, Can you please refer me to the post where there is discussion about companies Using GAAP rather than ifrs and how different the approach will be for using FS prepared as per GAAP.
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