Reference no: EM133073290

State the section of 'Financial Analysis" of credit analysis report by using the report of Telstra Corporation Ltd.

Instructions:

For financial analysis, please use the company's financial reports in the most recent five years and perform all three types of financial analysis techniques:

• Ratio analysis
• Comparative analysis such as common-size and trend analysis
• Comparison to benchmarks.

The key ratios/measures covered under credit analysis can be classified into five groups:

1. Profitability ratios and cash flow measures: these ratios focus on the profitability and cash flow generation that a company uses to
service its debt.

2. Leverage ratios: indicators of a company's financing (capital) structure, how much is funded by debt/borrowings?

3. Coverage ratios: these ratios measure a borrower's ability to meet or cover its interest payments of existing debt obligations.

4. Liquidity ratios: indicators of how quickly a company can convert its assets into cash to meet its short-term obligations.

5. Efficiency ratios: indicators of how efficient a company uses its resources to generate sales or income.

Reference in comment box