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Vodafone is based in the United Kingdom. Selected data from Vodafone’s 2012 annu

ID: 2328403 • Letter: V

Question

Vodafone is based in the United Kingdom. Selected data from Vodafone’s 2012 annual report follows (pounds in millions).


In its 2012 annual reports, Vodafone states, " Our leading performance is based on 3 core strengths. The successful implementation of our strategy to generate liquidity or free cash flow from non-conrolled interest.'

(a) Compute the percentage change in sales, operating profit, net cash flow less capital expenditures, and net earnings from year to year for the years presented.

(b) Evaluate Vodafone's performance. Which trend seems most favorable? Which trend seems least favorable? What are the implications of these trends for vodafone's strategy? Explain.

2012 2011 2010 Revenues $46,417 $45,884 $44,472 Gross profit % 32.04% 32.84% 33.80% Operating profit 11,187 5,596 9,480 Net cash flow less capital expenditures 8,459 9,173 9,145 Net earnings 7,003 7,870 8,618

Explanation / Answer

Answer :-

(a).percentages:-

Given information,

1.16%

NOTE:-

Here, we need to use this formula for finding the percentages ,

percentages in 2012:-

(b).Performance of vodafone's:-

2012 2011 2010 Rrevenues $46,417 $45,884 $44,472 Gross profit % 32.04% 32.84% 33.80% Operating profit 11,187 5,596 9,480 Net cash flow less capital expenditures 8,459 9,173 9,145