Sky 2011 and 2012
Ratio Analysis, Chairman’s Statement & Share Price Review
Module Code: PAA207 – Financial Management
Student Name: Umme Haani
Student Code: 120898
Submission Date: 14th December 2012
Table of Content
Introduction
Ratio Analysis
1. PROFITABILITY RATIOS
1.1 Return on Capital
1.2 Return on Equity
1.3 Revenue growth
1.4 Operating Expense Ratio
1.5 Net Profit Margin
2. EFFICIENCY RATIOS
2.1 Fixed Asset Turnover
2.2 Current Asset Turnover
2.3 Total Asset Turnover
3. “Short-term Liquidity
3.1 Current Ratio
3.2 Acid Test Ratio
4. WORKING CAPITAL RATIOS
4.1 Inventory Days
4.2 Trade Receivables Days
4.3 Trade Payables Days
5. LONG TERM SOLVENCY
5.1 Interest Cover
5.2 Gearing
6. Investor ratios
6.1 Dividend Cover Ratio
6.2 Dividend Pay-out Ratio
6.3 Dividend Yield
6.4 Earnings Per Share Ratio
6.5 P/E Ratio”
Chairman’s statement Review
Share price movement over the two years period Review Annexure Bibliography
Introduction
British Sky Broadcasting Group PLC was incorporated in 1988, (hereafter referred to as BSY, its trading symbol) is a leading and ever growing retailer of TV, HD, Multi-room, Broadband, Telephony and Line rental services in the United Kingdom & Ireland. BSY derives its revenue from wholesale fees, retail subscription, advertising and hardware, installation, and servicing. British Sky Broadcasting Group PLC is know by Sky in every household and is most dominant in the market for its movies, entertainment, sports & news channels, and interactive services through its remote control.
BSY continues to expand its income generating capabilities by investing in products and expansion of customer base each year. BSY has witnessed an increase of £10 in ARPU (Average Revenue Per User) indicating that the existing customer base has rewarded sky with more business.
Despite the growth in revenue due to the above-mentioned reasons, the total shareholder return
Module Code: PAA207 – Financial Management
Student Name: Umme Haani
Student Code: 120898
Submission Date: 14th December 2012
Table of Content
Introduction
Ratio Analysis
1. PROFITABILITY RATIOS
1.1 Return on Capital
1.2 Return on Equity
1.3 Revenue growth
1.4 Operating Expense Ratio
1.5 Net Profit Margin
2. EFFICIENCY RATIOS
2.1 Fixed Asset Turnover
2.2 Current Asset Turnover
2.3 Total Asset Turnover
3. “Short-term Liquidity
3.1 Current Ratio
3.2 Acid Test Ratio
4. WORKING CAPITAL RATIOS
4.1 Inventory Days
4.2 Trade Receivables Days
4.3 Trade Payables Days
5. LONG TERM SOLVENCY
5.1 Interest Cover
5.2 Gearing
6. Investor ratios
6.1 Dividend Cover Ratio
6.2 Dividend Pay-out Ratio
6.3 Dividend Yield
6.4 Earnings Per Share Ratio
6.5 P/E Ratio”
Chairman’s statement Review
Share price movement over the two years period Review Annexure Bibliography
Introduction
British Sky Broadcasting Group PLC was incorporated in 1988, (hereafter referred to as BSY, its trading symbol) is a leading and ever growing retailer of TV, HD, Multi-room, Broadband, Telephony and Line rental services in the United Kingdom & Ireland. BSY derives its revenue from wholesale fees, retail subscription, advertising and hardware, installation, and servicing. British Sky Broadcasting Group PLC is know by Sky in every household and is most dominant in the market for its movies, entertainment, sports & news channels, and interactive services through its remote control.
BSY continues to expand its income generating capabilities by investing in products and expansion of customer base each year. BSY has witnessed an increase of £10 in ARPU (Average Revenue Per User) indicating that the existing customer base has rewarded sky with more business.
Despite the growth in revenue due to the above-mentioned reasons, the total shareholder return
Bibliography: BSkyB (2012). British Sky Broadcasting Group plc-Annual Report 2012. [ONLINE] Available at: http://corporate.sky.com/documents/the_bigger_picture_2012/pdfs/annualreport2012 [Last Accessed 4 Dec 2012]. BSkyB (2012). Sky chairman’s statement. [ONLINE] Available at: http://annualreview2012.sky.com/_assets/downloads/pdfs/Sections/Sky_AnRev12_Chair_State.pdf [Last Accessed 4 Dec 2012]. Reuters (2012). TEXT-Fitch affirms BSkyB at 'BBB+ ' outlook stable. [ONLINE] Available at: http://www.reuters.com/article/2012/10/18/idUSWLA494620121018?type=companyNews [Last Accessed 10 Dec 2012]. Financial Times (2012). British Sky Broadcasting Group PLC. [ONLINE] Available at: http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=BSY:LSE [Last Accessed 9 Dec 2012]. Peter Evans (2012). BSkyB Customer Growth Slows as Competition Heats Up. [ONLINE] Available at: http://www.euroinvestor.com/news/2012/11/01/bskyb-customer-growth-slows-as-competition-heats-up/12132155 [Last Accessed 10 Dec 2012].