nokia

Nokia
Financial Statement Analysis:
Measuring the performance through data

Billy Mckeown

29th April 2012

Review before submission
TABLE OF CONTENTS

Company Profile 3
Standing Against the Competition 4
The Cross Border Markets 5
The Financial Strategy 6
Building the Books – The Net of Sales 6
Charging the Revenue Lines – Analyzing the Costs 8
Building Assets Against Liabilities 11
Multiplying the Numerations 11
Managing the Liabilities 12
Understanding the Financials Through Ratios 13
Profitability Ratios 13
Liquidity Ratios 14
Conclusion 16
References 17

Company Profile
With headquarters in Keilaniemi, Espoo, Nokia Corporation is a Finnish multinational giant known for its major presence in the telecommunication and wireless devices industry. From mobile electronics to mobile devices and internet communication industries; Nokia employs over 130,000 staff across the borders of 120 nations worldwide. In 2011 Nokia lead the market with an overall market share of 23% in the global device market. The company is known to produce mobile device products for almost every segment of the market with every category of network connection (Laitinen, 2006).
A publicly listed company at the Helsinki, Frankfurt and NYSE Stock Exchanges, Nokia accounts for over 33% of the market capitalization at the Helsinki Stock Exchange alone. The brand value calculated by Interbrand for Best Global Brands list in 2011 was at approx $25 billion. With such immense market presence, the company is still in the swings of new product developments as the change in technology continues to stir the market (Bontis, Dragonetti, Jacobsen, Roos, 2001). However, for a company like Nokia with a presence in over 150 countries, it is incumbent that the company emancipates its future with collaborations into new technological and communication pathways. Without marking its presence in the new era of boundary-less pathways and

References: Back, B., Toivonen, J., Vanharanta, H., Visa, A., (2001), Comparing numerical data and text information from annual reports using self-organising maps, International Journal of Accounting Information Systems, Volume 2, Pages. 249–269. Bontis, N., Dragonetti, N.C., Jacobsen, K., Roos, G., (2001), The knowledge toolbox: A review of the tools available to measure and manage intangible resources, European Management Journal, Volume 17, Issue 4, Pages 391 – 402. Brown, P. R., (1998), A model for effective financial analysis, The Journal of Financial Statement Analysis, Volume 3, Issue 4, pages 60 – 63. Henman, S., (2001), Financial statement analysis and security valuation, Singapore: McGraw-Hill International Edition. Ihlwan, M., Webb, A., and Caragata, W.,(2000), Asia Gets Hooked on Wireless, Business Week, June 19, Pages 62-64. Johanson, U., Mårtenson, M., Skoog, M., (2001), Mobilizing change through the management control of intangibles, Accounting, Organizations and Society, Volume 26, Pages 715–733. Johnson, R. A. Wichern, D. W., (1997), Business Statistics: Decision Making with Data. USA: John Wiley & Sons, Inc. Karlsson, J., (2000), Financial Benchmarking of Telecommunications Companies, Unpublished Masters Thesis at the Department of Information Systems, Turko: Åbo Akademi University. Kevin,K., Kotler,P., (2008), Marketing Management Kloptchenko, A., Magnusson, C., Back, B., (2004), Mining textual contents of financial report, Universidad de Huelva. Moore, C., Rowe, B.J., Widener, S.K., (2001), HCS: Designing a balanced scorecard in a knowledge-based firm, Issues in Accounting Education, Volume 16, Issue 4, Pages 569–601. Mouritsen, J., Larsen, H.T., Bukh, P.N., Johansen, M.R., (2001), Reading an intellectual capital statement. Describing and prescribing knowledge management strategies, Journal of Intellectual Capital, Volume 2, Issue 4, Pages 359–383. Nissim, D., Penman, S., (2001), Ratio analysis and equity valuation: From research to practice, Review of Accounting Studies, Volume 6, Issue 1, Pages 109–154. Osborne, J.D., Stubbart, C.I., Ramaprasad, A., (2001), Strategic groups and competitive enactment: a study of dynamic relationships between mental models and performance, Strategic Management Journal, Volume 22, Pages 435–454. Paton, R., McCalman, J., (2008), Change Management: A Guide to Effective Implementation. USA: SAGE Publications Ltd. Pendlebury, J., Grouard, B., Meston, F Penman, S., (2001), Financial statement analysis and security valuation, Singapore: McGraw-Hill International Edition. Young-Hoon Kwak (2005), A brief history of Project Management, In: The story of managing projects. Elias G. Carayannis et al. (9 ed.), USA: Greenwood Publishing Group, 2005.