Used to measure the profit margin of a company’s common stock, this method was used to analyze Telus corporation’s earnings per share of common stock. The worth of Telus’ stock has reduced by $110,000 from $1.49mil in 2000 to $1.60mil in the 2001 fiscal periods, as clearly shown on figure 1-1 of summary page. The statistics clearly show that the worth of there common stock have been declining, but can be influenced by many aspects. The decrease in common stock worth can be caused by a raise in preferred dividends, a decline in revenue will effect numbers related to of common share’s worth. An increase in preferred dividends isn’t necessarily doing any harm to the company, but a decline in revenue shows that the company is doing financially worst in year 2001 compared to year 2000.

Telus’ Current Ratio for 2000-2001

Current ratio is used to show the short term liquidity of a company, how easily a company can cover for their liabilities, by comparing their total assets to there total liabilities. A company with a stable flow of incoming and out coming cash should have a current asset to current liability ratio of 2:1. Figu

The short run debt paying ability of Telus corporations can be seen by the market as something that would make them think twice about investing there money. In 2000 the company was $4889.7mil in debt, as they have recovered substantially since then, the statistics for Telus in 2001 shows that they are in a debt of $417.5mil. From a Corporation’s stand point this debt is not seen as a negative aspect, but rather a positive aspect. Seeing how the company has substantially reduced it’s debt within one financial year of operation, this shows that the corporation has the ability to create revenue to compensate for it’s liabilities.

Equity percentage, show the protection that the creditors are receiving from the company in terms of equity. The percentage is used to show and assures the shareholders that the company is able to cover for the shareholders equity through there own assets as insurance. In 2000 Telus’ Equity percent was at 35.6%, moving into 2001 there equity percent was at 36.3% which is not much of an increase. The increase in 2001 from 2000 shows that the company is losing position of its own company to the shareholders, this may be cause by loss in revenue which reduces the profit margin for the company itself. Overall Telus is stable, considering that the increase was only a .7% difference indicating that the company has a firm stance on its financial controls.

Some topics in this essay:
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