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[SOLVED] Financial Statement Analysis

   

Added on  2020-10-22

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AIR NEW ZEALANDLIMITED
[SOLVED] Financial Statement Analysis_1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Financial ratio analysis...........................................................................................................1Horizontal analysis.................................................................................................................3Vertical analysis ....................................................................................................................4Horizontal Analysis................................................................................................................6Vertical analysis.....................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9APPENDIX....................................................................................................................................10
[SOLVED] Financial Statement Analysis_2

EXECUTIVE SUMMARYFinancial performance indicator is the predefined structure which help the organization toidentify and analyse the organization's performance. This can be done with calculation ofdifferent financial ratios such as profitability, liquidity, market value, investment and efficiencyratio. In this present report, This can be done with calculation of different financial ratios such asprofitability, liquidity, market value, investment and efficiency ratio. Gross profit margin ofKingfisher Plc has seen slight increment from 2015 to 2017 of around $.03 million. This not amajor increment for a big organisation in a period of 3 years. For Air New Zealand limited thegrowth was 77.89% in 2015 to 83.81% in 2017, there is slight more increase in profits ascompared to Kingfisher. The will remain unhold 106 to 110 days in Kingfisher Plc and in newair it is between 41 to 48 days. This indicates that inventory is fast moving in New air as it has atime period of less than 50 days. The interest coverage ratio for Air new was 5.39 in 2105 and7.06 in 2107 this shows that company is putting its step forward to cover its interest expenses.For Kingfisher plc earnings were 0. 24 in 2015, 0.18 in 2016 and 0.51 in 2017. Earnings pershare are very low for all three years yet it is increasing with a slow pace. For Air New earningsin 2015 and 2016 were 23.31 and 40.21 respectively. This shows that company provides a goodreturn to shareholders on their investments.
[SOLVED] Financial Statement Analysis_3

INTRODUCTIONFinancial performance indicator of an organisation is the analysis and evaluation ofaccounting statements. This can be done with calculation of different financial ratios such asprofitability, liquidity, market value, investment and efficiency ratio. A comparison of twodifferent firms in same industry can also be carried out with comparison of these ratios. In thepresent case study, This can be done with calculation of different financial ratios such asprofitability, liquidity, market value, investment and efficiency ratio It is done in a way ofevaluation of their income statement and balance sheet in form of vertical and horizontalanalysis. A ratio analysis of both organisations is also presented in this report. At the end of thisreport, it will present one company from both of them which has a better financial position andmarket value. MAIN BODYFinancial ratio analysisProfitability ratiosGross profit margin of Kingfisher Plc has seen slight increment from 2015 to 2017 ofaround $.03 million. This not a major increment for a big organisation in a period of 3 years. ForAir New Zealand limited the growth was 77.89% in 2015 to 83.81% in 2017, there is slight moreincrease in profits as compared to Kingfisher (Gub & et.al., 2015). for operating income it canbe said that Air New Zealand have seen a increment in 2016 and then a downfall in 2017, there isconsistent rise in operating income of kingfisher Plc. Same is the case with net profit margin forboth organisations. This can be said that kingfisher have gained a control over its operatingoverhead and it is reflected in its net profits. Though gross profits of Air new Zealand Limitedare very high for every year but it does not have an effective control over its administrative costand this resulted in lower net profit margin and also, they are decreasing in this period of 3 years.Liquidity rationThe liquidity position of both firms is compared through current and quick ratios. Currentratio for all the three years is below 1 which is not a good sign of liquidity position for abusiness. For Kingfisher Plc in two years it was constant and for 2014 it rose to 1.3 with a minor1
[SOLVED] Financial Statement Analysis_4

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