1
RATIO
ANALYSIS
By Team 7
Kaushal Goyal, Jasmine Li, Carlos López, Yuwei Yang.
Oct 12, 2023
2
AGENDA OVERVIEW
1
4
Canadian
Te l e c o m I n d u s t r y
M a r k e t Va l u e s
2
Business Analysis
3
Financial Performance
5
Investment Options
6
Q&A
3
CANADA TELECOM INDUSTRY
National players
Rogers
BCE (Bell)
Telus
GDP contribution
GDP Share
$70 Billion
4% of GDP
Mobile coverage
99.7%
Source: Canadian Telecom Association and Rogers Annual Report 2022
4
BUSINESS ANALYSIS
BUSINESS REVENUE AND STRUCTURES
Revenue Ranking 2022
Business Structures
ROGERS
TELUS
24.174 CAD. Billion
18.292 CAD. Billion
15.396 CAD. Billion
Rogers
Revenue
15.4 billion
Wireless
Cable
Media
59%
26%
15%
BCE
Revenue
24.2 billion
Wireless
Cable
Media
38%
49%
13%
Networking
TELUS
Revenue
56%
18.3 billion
Communications
37%
Health
8%
BCE
Source: Canadian Telecom Association and Rogers Annual Report 2022
5
EMPLOYEES & SUBSCRIBERS
Subscribers (millions) 2022
44,610
108,500
ROGERS
BCE
22,000
TELUS
TELUS
BCE
ROGERS
Employee Numbers 2022
14.4
19.4
18.0
6
Financial
Performance
7
REVENU E
2019-2022
Rogers
BCE
Telus
31/12/2019
31/12/2020 31/12/2021 31/12/2022
15,073,000
13,916,000
14,655,000 15,396,000
23,964,000
22,883,000
23,449,000 24,174,000
14,589,000
15,341,000
16,838,000 18,292,000
8
GROSS PROFIT
2019-2022
31/12/2019
31/12/2020 31/12/2021 31/12/2022
Rogers
6,212,000
5,857,000
5,887,000
6,393,000
BCE
10,106,000
9,607,000
9,893,000
10,199,000
Telus
8,519,000
9,073,000
10,139,000
11,185,000
9
NET INCOME
2019-2022
31/12/2019
31/12/2020
31/12/2021
31/12/2022
Rogers
2,043,000
1,592,000
1,558,000
1,680,000
BCE
3,191,000
2,634,000
2,840,000
2,868,000
Telus
1,746,000
1,207,000
1,655,000
1,615,000
10
Margin Ratio
Gross Profit Margin & Net Profit Margin
Gross Profit
Margin%
Gross Profit
Margin%
Rogers
BCE
Telus
31/12/2019 31/12/2020 31/12/2021 31/12/2022
41.21%
42.09%
40.17%
41.52%
42.17%
41.98%
42.19%
42.19%
58.39%
59.14%
60.21%
61.15%
Net Profit
Margin%
Rogers
BCE
Telus
31/12/2019 31/12/2020 31/12/2021 31/12/2022
14%
11%
11%
11%
13%
12%
12%
12%
12%
8%
10%
9%
11
Market Values
12
INVESTMENT
RATIOS
13
FREE CASH FLOW
14
15
Investment
Options
16
Conclusions
2022-2019
Revenue
2%
1%
Net
Income
Gross
Profit
25%
-4%
1%
31%
-17%
-10%
Rogers
-7%
BCE
TELUS
17
Conclusions
2022
Current
Ratio
2
0.5
Return
On
Assets
Dividend
Yield
0.75
3.2%
6%
5%
3.3%
4.2%
Rogers
3.1%
BCE
TELUS
18
QUESTIONS?
19
BCE Inc. (Ed.). (2023). Annual financial report 2022 - BCE Inc. BCE.
https://www.bce.ca/investors/AR-2022/2022-bce-annual-financialreport.pdf
Rogers (Ed.). (2023, March 31). 2022 Rogers Annual Report. Rogers Investor
Relations. https://investors.rogers.com/2022-annual-report/
Telus Corporation (Ed.). (2023). Telus 2022 Annual Report. Telus.
https://assets.ctfassets.net/fltupc9ltp8m/9T4hsvjS9rvBsNjgsypRW/8b
REFERENCES
ab758d7371aef4089da1092944180c/TELUS_AIF_English_2022_0217
2023.pdf
Yahoo! Finance (Ed.). (2023a, October 5). BCE Inc. (BCE.TO). Yahoo! Finance.
https://ca.finance.yahoo.com/quote/BCE.TO/cash-flow?p=BCE.TO
Yahoo! Finance (Ed.). (2023, October 5). Rogers Communications Inc. (RCI-B.TO).
Yahoo! Finance. https://ca.finance.yahoo.com/quote/RCI-B.TO/cashflow?p=RCI-B.TO
Yahoo! Finance (Ed.). (2023c, October 5). Telus Corporation (T.TO). Yahoo!
Finance. https://ca.finance.yahoo.com/quote/T.TO/cash-flow?p=T.TO
20
T HA NK YO U
21
Backup Slides
22
Slide – Days In Inventory
Slide - Vertical Analysis
Rogers (In Thousands)
23
Telus (In Thousands)
BCE (In Thousands)
Current Debt
4,813,000 8.65%
Current Debt
4,137,000
5.97%
Current Debt
2,645,000
4.89%
Accounts Payable
3,722,000 6.69%
Accounts Payable
5,221,000
7.53%
Accounts Payable
1,382,000
2.56%
Deferred revenues
857
1.24%
Accrued liabilities
2,455,000
4.54%
Other Accounts
2,110,143
3.04%
Other Accounts
1,799,000
3.33%
Total Current Liabilities
8,281,000
15.32%
Long Term Debt
22,496,000
41.62%
7.14%
Deferred taxes liabilities
4,437,000
8.21%
3.76%
Other Accounts
1,174,000
2.17%
28,107,000
52.01%
36,388,000
67.33%
Deferred revenues
Other Accounts
400
0.72%
1,013,600 1.82%
Total Current Liabilities 9,549,000 17.16%
Long Term Debt
29,905,000 53.73%
Deferred taxes liabilities 3,652,000 6.56%
Other Accounts
Total Current Liabilities 11,469,000 16.54%
Long Term Debt
27,783,000 40.07%
Deferred taxes liabilities 4,953,000
2,457,000 4.41%
Other Accounts
2,609,000
Total non-current
liabilities
36,014,000 64.71%
Total non-current
liabilities
35,345,000 50.98%
Total non-current
liabilities
Total Liabilities
45,563,000 81.87%
Total Liabilities
46,814,000 67.52%
Total Liabilities