Analysis of Company: TUI AG

ANALYSIS OF COMPANY

EXECUTIVE SUMMARY
It can be inferred from the above project that a company can be analysed using the various tools
and techniques of the management accounting like the ratio analysis, balance scorecards, cost
and the decision-making accounting. Based on this analysis that is conducted for a company the
various strategic formulation are done to observe the achievement of the financial and the non-
financial objectives of the company. The analysis of the external and internal environment of the
company shall also create the competencies for assuming competitive advantage in the industry.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ABOUT THE COMPANY..............................................................................................................1
RATIO ANALYSIS.........................................................................................................................1
Calculation of the ratios...............................................................................................................1
Interpretation of the ratios............................................................................................................1
BALANCE SCORECARD..............................................................................................................4
Four perspectives analysis of the balance score cards.................................................................4
External and internal legal environment......................................................................................6
Strategic performance of the company........................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
APPENDICES.................................................................................................................................8

INTRODUCTION
The financial analysis of the company can be done through using the various techniques of the management accounting that
can ascertain the current position of the business which is affected by the various financial and the non-financial indicators of the
company. The current project shall be disclosing the financial analysis of the company through undertaking the ratio analysis of the
last five-year's data showing the financial, liquidity and the efficiency position of the company. Apart from that it shall be highlighting
the four perspectives analysis of the balance scorecard. Further the other areas like the strategic management and the external and
internal legal environment of the company shall be reflected in the report.
ABOUT THE COMPANY
TUI AG is the German multinational travel and tourism company that was founded in the year 1923 and is headquartered in
Hanover, Germany. It is one of the world's largest travel and tourism companies which has it own travel agencies, cruise ships,
airlines, hotels and the other retail outlets to carry out the operations of the company (TUI Group, 2021). The leisure company has
over the years established successful partnerships, mergers which has spread the market of the company in multiple countries round
the world. It is also gained the competitive advantage through the horizontal and the vertical integration wherein they generated
ownership in maximum properties further boosting the profitability and growth of the company.
RATIO ANALYSIS
Calculation of the ratios
Interpretation of the ratios Current ratio- The current ratio of the company shows the liquidity position of the business through the ability of it to make
the short term liabilities and obligations through the current assets that re possessed by the business. From the above table it
can be observed that the current ratio of the company in the last five years has never been 1 or above 1 and this is the reason it
can be ascertained that the company TUI AG has been facing tight liquidity spot all over these years. It can also evidently be
noticed that the current ratio has significantly lowered down from 2016 where it was 0.84 to 2020 where it is 0.45. the ratio has
1