SHAREHOLDER the business organization is to maximize the

 

 SHAREHOLDER VALUE
1. What is the
goal of financial management for business organizations? Would this diminish
the organization’s willingness to meet social objectives and obligations?
 

The
main purpose of the business organization is to maximize the profit. The
financial management is the branch which deals with the money or fund
management of the organization properly so that the goal or the profit can be
achieved with minimal resource and effort utilization. The account shows the
money in terms of number but the role of finance manager is to allocate money
according to theme of business organization.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Social
objectives and obligation are the roles that need to be performed according to the
rules of the locality where organization is operating. Every business
organization nowadays has corporate social responsibility and they invest some
amount of money for this purpose. Financial management actually do not diminish
the organization’s willingness to meet social objectives and obligations
instead it can play a unique role so that both can go parallel without
colliding each other values.

 

 NON-PROFIT ORGANIZATIONS
2. Identify a
non-profit organization and state their mission statement. What kind of financial management goals would be appropriate,
and how would you measure success in fulfilling those goals?

 

One
of the not for profit organization operating in Canada is University of
Manitoba, and the mission is “To create, preserve, communicate and apply
knowledge, contributing to the cultural, social and economic well-being of the
people of Manitoba, Canada and the world.”

Unlike
for profitable organization increasing shareholder interest, financial
management for the nonprofit organization goal is to maximize the profit for
the society and stakeholder interest and provide socially desirable needs. They
need to utilize the money given to the organization by the donor and satisfy
them by investing that money on social interest. 

 

 

 

3.
Identify a publicly traded for-profit company approved by the instructor. Describe
the business using a maximum of four sentences.

Rogers Communications Inc. is
a leading telecommunication company operating in Canada and provide the
services like telephony, high speed internet, cable television for both
business and individuals. Shares for Rogers are traded in Toronto Stock
Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).

 

 

FINANCIAL
STATEMENT ANALYSIS

 4.  Using our lecture discussions and the textbook
Table 4.5 as a guide, select and prepare five (5) financial ratio calculations
to analyze the performance of your chosen company. Explain your findings using
a maximum of five (5) sentences to clearly convey your assessment of their
financial performance.

The
document used for the ratio analysis in available in this online link stored in

http://netstorage-ion.rogers.com/downloads/IR/pdf/annual-reports/Rogers-2016-Annual-Report.pdf

 

1.
Working Capital Ratio 

This
ratio measures the health of the organization and indicates how much an
organization is capable of meeting its liabilities or financial obligations..
The working
capital ratio is calculated by dividing current
assets by current
liabilities.

Working
Capital Ratio

 =

 = 0.5026

 

The
value 0.5026 indicates that there could be potential liquidity problems as the
ratio of 1.5 to 2 is considered as the solid financial condition.

2.
Quick Ratio

Also
known as the acid
test, this ratio subtracts inventories from current assets,
before dividing that figure into liabilities. It shows how well current
liabilities are covered by cash and by items with a ready cash value.
Inventory, on the other hand, takes time to sell and convert into liquid
assets, that is why we subtract them for the quick ratio.

Quick
Ratio=

 =

 = 0.4410

Higher
value of quick ratio means the company is in better liquid cash position and
not relying on sales of its inventory or other assets to pay its short term
liabilities. Here, the number 0.4410 is below 1 so that Rogers communication need
to sales its inventory quickly.  

3.
Return on equity (ROE)

            This ratio reveals how much profit
does organization made using the investment of the shareholder’s money.  This is also known as return on net
worth(RONW).

ROE=

 =

 = 0.1584

The
higher the value of ROE is preferred.

4.
Return on Assets ROA (Du Point Ratio)

This ratio tells how an organization is using its
assets efficiently.

ROA =

 =

% = 2.94%

The
company is generating its 2.94% of asset to generate profit.

 

5.
Debt-Equity Ratio 

The debt-to-equity is
calculated by dividing total liabilities by the shareholders’
equity and this is a leverage ratio that tells what amount of
debt and equity is being used to finance the company’s assets.

Debt-Equity Ratio =

 =

%= 437.9%

This
indicates that Rogers is adopting aggressive growth and with increasing profit
there are greater chances of loss for investors.

 

 

SWOT
AND BUSINESS PLANNING

5.         Conduct a SWOT analysis of the company
to help guide management on preparing the business plan financial statements.

Strengths

Weakness

1.     
Canada’s largest wireless
provider
2.     
One of the top companies
operating in media and mass communication field
3.     
Initiator and introducer of
latest technologies
 
 

1.     
Do  not have multinational operation
2.     
Dependent upon Canadian
clients only

Opportunities

Threats

1.     
Can grow telecommunication
sales and increase market in all regions
2.     
Launch new and latest
internet and GSM updated technology

1.     
Very high fluctuation in
technology and dynamic characters
2.     
Highly competitive market and
strong competitors
 
 

 

 

EXTERNAL
SUPPORT

6.         Identify an external source of support
for your SWOT analysis above as discussed in class.

For
Second Class: Gartner report

Name
of leader and find the Gartner report

Forrester
Research for finance

 

FORECASTED INCOME STATEMENT (p. 58(Income Statement))

7.  Prepare an income
statement for the fiscal year following the latest income statements available
online which reflects the outcome of your financial statement analysis, and
supported SWOT work above. Include a reproduction of the latest income
statement from the company that you used as a basis of your new fiscal year
forecast.

 

Rogers Communication

Projected Income Statement

For the year ending December 31, 2019

 

(In millions of dollars, except per share
amounts)

Full Year(2019)

Revenue

 

 

Wireless

8124

 

Cable

3533

 

Business Solutions

388

 

Media

2241

 

Corporate Items and Intercompany Eliminators

200

Total revenue

14486

Adjusted operating profit(loss)

 

 

Wireless

3312

 

Cable

1712

 

Business Solutions

120

 

Media

152

 

Corporate Items and Intercompany Eliminators

155

Adjusted operating profit

5451

Deduct(add)

 

 

Stock based compensation

65

 

Depreciation and amortization

2280

 

Impairment of assets and related onerous contract charges

480

 

Restructuring, acquition and other

175

 

Finance costs

780

 

Other expense(income)

180

Net income(loss) before income tax
expense(recovery)

 

Income tax expense(recovery)

 

Net income(loss)

 

Earnings per share

 

 

Basic

 

 

Diluted

 

Net Income

 

Add

 

 

Stock based compensation

 

 

Gain on acquition of mobility

 

 

Loss on non-controlling interest purchase obligations

 

 

Loss on repayment of long term debt

 

 

Loss on wind down of shomi

 

 

Net loss on divestitures pertaining to investments

 

 

Impairment of assets and related onerous contract charges

 

 

Income tax impact of above items

 

 

Income tax adjustment, legislative tax change

 

Adjusted net income

 

 

Basic

 

 

Diluted

 

Additions to property, plant and
equipment

 

Cash provided by operating activities

 

Free cash flow

 

Total service revenue

 

 

 

APPENDIX