Accounting - Individual Case Analysis (1)

School: Myers * - Course: ACC 621 - Subject: Accounting

Executive Summary Shaw communication inc.is a Canada based telecommunication company founded in 1966 by James Robert Shaw.The company offerstelephone, cable television, network, specialty broadcasting, logistic tracking and high-speed internet services. Currently, the firm has employed more than 15,000 employees to help in its production. The company reported an annual revenue amounting to CAD $ 5.3 billion in 2019. This is an increase from the previous year amount of CAD $ 4.8 billion. Financial assessment indicates that most of its ratios are unstable that is they increase in one year and drop the following in year making the firm unpredictable. Shaw's major competitor is Telus telecommunication company founded in 1990. The firm offers similar product and service with the incorporation of the latest trends in the market. The firm has managed to establish its dominance in the industry thus the high revenue return amounting to CAD $ 8.5 billion in 2019. The revenue has been increasing the past five years with little fluctuations. Financial assessment indicate that the firm ratios are stable and high which gives the firm an upper hand against Shaw. The advanced technology has attracted a large pool of investors as they expect the firm will generate more with the current system installation thus pay them higher returns. However, debt accumulation by the company has led to a decline in its revenue.

TABLE OF CONTENTS Executive Summary.....................................................................................................................................2 Financial Performance Evaluation Report....................................................................................................4 Introduction.................................................................................................................................................4 Company Background..................................................................................................................................4 Shaw Communication, Inc.......................................................................................................................4 TELUS Communication Inc.......................................................................................................................5 Financial Assessment...................................................................................................................................5 Financial Ratio Analysis............................................................................................................................5 Profitability Ratios...............................................................................................................................6 Solvency Ratios....................................................................................................................................9 Efficiency Ratios.................................................................................................................................10 Capital Structure Ratio.......................................................................................................................11 Vertical Analysis.....................................................................................................................................12 Horizontal Analysis................................................................................................................................13 Cash flow analysis......................................................................................................................................13 Conclusion and Recommendation.............................................................................................................14 References.................................................................................................................................................15 Appendix...................................................................................................................................................16

Financial Performance Evaluation Report Introduction In modern times, the influence of the communication sector is invaluable.The provision of communication services entails essential services that facilitate the movement of information across the world (Servaes, 2020). In Canada, the communication services sector is dominated by two major companies, which are TELUS and Shaw communication Inc. The two communication giants offer telecommunication products and services, such as internet access, voice, and entertainment, to smoothen communication and keep the citizens informed.However, the two rivals have adopted different perspective in performance and approaches to winning over the highest share of the Canadian market. This report presents a comprehensive evaluation of financial performance and a comparative assessment of TELUS and Shaw communication.