On March 21, China Mobile
- Sales growth of 21.5% and slight margin expansion led to a 23.4% increase in net income.
- The balance sheet firmed up with decreases in long-term liabilities, increased cash, and positive trends in accounts receivable and payable.
- The company's total subscriber base increased 22.1% to a mammoth 301 million users, which is nearly twice that of Telefonica
(NYSE:TEF) and five times that of Verizon(NYSE:VZ) . - China Mobile is a five-star stock, the highest rating possible, in Motley Fool CAPS.
(Figures in millions, except per-share data. Figures based on an exchange rate of 7.77 Chinese yuan to 1 U.S. dollar.)
Income Statement Highlights
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$38,000.9 |
$31,269.7 |
21.5% |
|
Net Profit |
$8,506.3 |
$6,894.8 |
23.4% |
|
EPS |
$0.42 |
$0.35 |
21.9% |
|
Earnings per ADR |
$2.12 |
$1.74 |
21.9% |
Get back to basics with the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* |
|
|---|---|---|---|
|
Operating Margin |
31.2% |
30.3% |
0.9 |
|
Net Margin |
22.4% |
22.1% |
0.3 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$9,156.4 |
$8,293.6 |
10.4% |
|
Accounts Rec. |
$920.3 |
$849.5 |
8.3% |
|
Inventory |
$386.9 |
$304.3 |
27.1% |
|
Liabilities |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$7,364.5 |
$5,394.9 |
36.5% |
|
Long-Term Debt |
$4,319.6 |
$4,701.9 |
(8.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
China Mobile did not provide a statement of cash flows.
Find out why free cash flow is a Fool's best friend.
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Foolish editor Joe Magyer does not own any shares in the above mentioned company. The Fool has a disclosure policy.
