Accounting for Managers

Running head: Accounting For Managers
Accounting for Managers
Name of the Student
Name of the University
Author Note

1Accounting for Managers
Table of Contents
Question No 1............................................................................................................................2
1A)..........................................................................................................................................2
1B)..........................................................................................................................................7
1C)..........................................................................................................................................8
Question No 2............................................................................................................................8
A)............................................................................................................................................8
B)............................................................................................................................................9
Reference and Bibliography.....................................................................................................10

2Accounting for Managers
Introduction
The company analysis is been done so that the shareholder can know the performance
of the business. The report shows the analysis of aviation industry by taking three companies
from the industry. Aviation industry is the industry in which aircraft industry takes place and
the company are EASYJET PLC, FLYBE GROUP PLC and RYANAIR HOLDING
COMPANY.
Question No 1
1A)
Financial ratio is been concern it represent the financial performance of the business
as it represent different aspects of the company financial information so that the user of the
financial statement can know the performance of business in the market (Abor 2017). It show
the liquidity aspect of the company as how much liquidity the company is having in payment
of the short term liability, that guide the user in regards of the liquidity position of company.
It also show about the profitability aspects of the company as it show different level of profit
which the company is earning so this help the user to know about how much the company is
able to earn from the business (Almamy, Aston and Ngwa 2016). It also shows about other
aspects of the company so that the user can get all the details which are required by the user
to know the performance of the company. The below discussion show about the different
financial ratio of 3 aviation company and also say which company is better in respect of
performance (Al-Mutairi, Naser and Saeid 2018). The company which are been taken are
EASYJET PLC, FLYBE GROUP PLC and RYANAIR HOLDING COMPANY.
Current ratio – It show the company liquidity in regards of the payment of short term liability
with respect to the current asset (Corporate.easyjet.com 2019). Current ratio state that
the Ryan Air is having good current ratio in regards of other company as Ryan is having 1.56

3Accounting for Managers
as current ratio whereas Flybe is having 0.96 and EasyJet is having 1.04 so this signify that
the Ryan is able to have more amount of ratio in compare of other two which clear that
RyanAir is having good position in regards of finance so this will help the user to take
decision more properly and they should select RyanAir as it is having better current ratio in
contrast to other company.
Shareholder Liquidity Ratio – It show about the ratio as how much the company asset are
been funded with the help of the equity share (Flybe.com 2019). If the ratio is lower than
it signifies about the debt usage of the company as it signify that the company is using high
debt in the business. This help the individual to have the knowledge of debt in the company
and how solvent the company is in regards of the usage of debt. So as per the ratio is been
concern EasyJet is able to have more good performance in regards of other companies as it is
having 2.21 so this show the company is having a better ratio as it is able to have finance in
regards of the equity share as other companies are having low ratio as Flybe is having 0.47
which is a very low ratio and also Ryan Air is having 0.97 so this show that the company is
not having ideal ratio which should be there in regards of shareholders equity ratio.