B716 Tma03 Task 2

Diego Rendon
F1785379
Diego Rendon
F1785379
The Open University
BXFT716 MBA Stage 1: Management Perspectives and Practice
The Open University
BXFT716 MBA Stage 1: Management Perspectives and Practice
Financial management
TMA 003 Task 2 Financial Analysis Report
Financial management
TMA 003 Task 2 Financial Analysis Report

Contents
Company overview 4
PROFITABILITY 5
Return on capital employed (ROCE) 5
Capital Employed Values 6
ROCE Values 6
Return on sales (ROS) 7
Return on Sales Values 7
Asset Utilization ratio (AUR) 8
Asset Utilization Values 8
Gross profit Margin 9
Gross Profit Margin Values 9
LIQUIDITY 10
Current Ratio 10
Current Ratio Values 10
Quick Ratio 11
Working Capital 12
Working Capital Values 12
SOLVENCY 13
Leverage 13
Leverage Values 13
GEARING 14
Gearing Values 14
Interest Cover 15
Interest Cover Values 15
EFFICIENCY 16
Inventory days 16
Inventory Days Values 16
Trade and other receivables 17
Receivable Days Values 17
Trade and other payables days 18
INVESTOR 19
Return on Equity Consolidated 19
ROE Consolidated Values 19
ROE Attributable to Owners Values 20
References 21


Company overview

Orange (formerly France Telecom) is a world leading telecommunications operator with revenues of 39 billion euros in 2014. Employing over 156,000 employees worldwide, and operating in 29 countries. Orange has been listed since 1997 on Nyse Euronext Paris (symbol: ORA) and on the New York Stock Exchange (symbol: ORAN) (Orange, 2014).

Business in 2014.
Source: (Orange, 2014)

The following is a financial analysis from Orange’s financial statement from 2012- 2014. It shows how Orange rose to the challenge of the ever changing telecommunications industry, defending their ‘position and strengthening their operational efficiency’ (Orange, 2013, p. 29)

PROFITABILITY
Return on capital employed (ROCE)
Orange experienced an increase in ROCE from 6.42% to 8.38% between...