INTERNATIONAL FINANCIAL ACCOUNTING

International Financial Accounting

International Financial Accounting

BT Group PLC

BT Group plc is a global telecommunications Services Company headquartered in London, United Kingdom. It is one of the largest telecommunications services companies in the world and has operations in more than 170 countries. Through its BT Global Services division it is a leading supplier of telecommunications services to corporate and government customers worldwide. Its BT Retail division is a leading supplier of telephony, broadband and subscription television services in the UK, with over 18 million customers.

Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It has a secondary listing on the New York Stock Exchange. (Carlopio, 1998, pp. 133-145)

History

BT is the world's oldest telecommunications company. The company's origins date back to the establishment of the first telecommunications companies in the United Kingdom.

Operations

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

BT runs the telephone exchanges, trunk network and local loop connections for the vast majority of British fixed-line telephones. Currently BT is responsible for approximately 28 million telephone lines in the UK. Apart from Kingston Communications, which serves Kingston upon Hull, BT is the only UK telecoms operator to have a Universal Service Obligation (USO) which means it must provide a fixed telephone line to any address in the UK. It is also obliged to provide public call boxes. (Carlopio, 1998, pp. 133-145)

Recent Developments

In August 2006 BT acquired online electrical retailer Dabs.com for £30.6 million. The BT Home Hub manufactured by Invented was also launched in June 2006.

Financial Statement Analysis for 2008 and 2009 - BT Group plc

Ratio Analysis

From the ratio analysis it can be discerned that the BT Group PLC was managing well in the year 2008 but the presentation of business proceeds up in the year 2009. The Gross Profit Margin is not expanding in the year 2009 than that of 2008 but negative. However the position got better when we glimpse the Operating Profit Margin and Net Profit Margin. Both the ratios are contradictory in 2009, which displays that the BT Group PLC is running in profit. The Return on Equity (ROE) for the year 2008 is affirmative but it is contradictory for the year 2009.

The Current Ratio and the Net Working Capital has expanded in the year 2009, which displays an affirmative signal but this boost is due to the payments obtained from the debtors.

Overall, it is resolved that the financial place of the business is not good and the administration should take certain assesses in alignment to advance the presentation of the company. (Richard A., 2000, pp. 140-144)

Acid Test/Quick Ratio

It's a sign of a short-term liquidity. The fast ratio measures the BT Plc's proficiency to meet its short-term obligations with its most fluid assets. It has 1.55 for 2008 and 1.53 for ...