RE: Its no exaggeration24 Oct 2021 14:10
Lol Android, no offense but I think you were only looking at one side of a coin. All you talking about were income (turn over) of a business. Do you realize that you need to pay for the expenses? Let's take a look at a very simple example: say when you have opened a shop. Your first week turn over was £10k. Then you need to pay for your stock, staff wages, gas, electricity, water, rent, business rate, VAT return and many other expenses. After all these were paid you probably have got only £500 left or maybe minus(made a loss).
So called cash flow is the money you took from the business operations before paying the costs (like the £10k of the example above). VOD 's turn over(revenue) in 2021 was €43.809b. pre-tax profit was €4.4b. Post tax profit(net profit) was €536m. Of which, ¥412m went the minority shareholders and only €112m went to the shareholders, that's EPS 0.324p per share (PE 341). And VOD paid 7.761p dividend per share!
The net profit could over cover less than 5% of the payout. Where did they find the money to pay us then. From the reserve of course and needless to say, those reserve were from borrowings!!
There is another fact you have missed: VOD's retain earnings (left over after all expenses were paid at the end of the financial year since the beginning of the company) that's -€121.587b!
Good lord, VOD has made a total loss of more than €121b since the company has started trading. How did they survive then? Borrowings of course and that's how they ended up with a mountain of debts!!!!!
There's one more thing: VOD'S cash in hand and at bank was €13.284b in 2020. Dropped to €5.821b in 2021. What do you think it will be in 2022 then. Do you think VOD can carry on trading without more borrowings? I am not so sure. I am sorry to pour cold water on you guys..... hahahaha
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