TELUS Corporation
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TELUS Corporation Financial Snapshot
Operating Performance
Fast Facts
The company reported revenue of US$9,506.80
Headquarters Address 21st Floor, Burnaby, V5H 3Z7,Canada
million during the fiscal year 2010 (2010). The
company's revenue grew at a CAGR of 5.47% during
Telephone + 1 800 6674871
2006–2010, with an annual growth of 12.82% over
2009. In 2010, the company recorded an operating
Fax + 1 780 4937399 margin of 19.50%, as against 17.38% in 2009.
Website www.telus.com
Revenue and Margins
T, Toronto Stock ExchangeT.A, Toronto
Ticker Symbol, Stock Exchange
Stock Exchange
Number of Employees 33,900
Fiscal Year End December
Revenue (in US$ million) 9,506.80
Revenue (in CAD million) 9,792.00
SWOT Analysis Return on Equity
Strengths Weaknesses The company recorded a return on equity (ROE) of
13.51% for 2010, as compared to its peers, Rogers
Below-par performance vis-à-vis the Communications Inc. (Ticker: RCI.B), Shaw
Leading market position
peers Communications Inc. (Ticker: SJR.B) and BCE Inc.
(Ticker: BCE), which recorded ROEs of 39.95%,
Robust strategy for TELUS TV Increasing current liabilities 19.23% and 13.23% respectively. The company
reported an operating margin of 19.50% in 2010.
Strong operational performance
Return on Equity
Opportunities Threats
Agreement with Huawei Technologies Industry consolidation
Expansion of wireless and wireline
Regulatory changes
networks
Growing LTE market Wireless number portability execution
Liquidity Position
The company reported a current ratio of 0.44 in 2010,
as compared to its peers, Rogers Communications
Inc., Shaw Communications Inc. and BCE Inc., which
recorded current ratios of 0.63, 0.58 and 0.60
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$16.50 million, against US$822.33 million current
debt. The company reported a debt to equity ratio of
0.83 in 2010 as compared to its peers, Rogers
Communications Inc., Shaw Communications Inc. and
BCE Inc., which recorded debt to equity ratios of 2.31,
1.44 and 0.69 respectively.
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TELUS Corporation - SWOT Profile Page 1
TELUS Corporation
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
2.2 Key Financial Performance Indicators .................................................................................................................11
2.2.1 Revenue and Operating Profit .........................................................................................................................11
2.2.2 Asset, Liabilities and Capex .............................................................................................................................12
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................13
2.2.4 Solvency ..........................................................................................................................................................14
2.2.5 Valuation ..........................................................................................................................................................15
2.3 Competitive Benchmarking ..................................................................................................................................16
2.3.1 Market Capitalization .......................................................................................................................................17
2.3.2 Efficiency ..........................................................................................................................................................18
2.3.3 Capital Expenditure ..........................................................................................................................................19
2.3.4 Valuation ..........................................................................................................................................................20
2.3.5 Turnover – Inventory and Asset .......................................................................................................................21
2.3.6 Liquidity ............................................................................................................................................................22
3 Mergers & Acquisitions and Partnerships ........................................................................................... 23
3.1 M&A and Partnerships Strategy ...........................................................................................................................23
4 Recent Developments ........................................................................................................................... 24
5 SWOT Analysis ...................................................................................................................................... 26
5.1 SWOT Analysis - Overview ..................................................................................................................................26
5.2 Strengths ......................................