Aviation Management Assignment Solved
Added on 2021-04-17
16 Pages2136 Words73 Views
Running head: AVIATION MANAGEMENTAviation ManagementName of the Student:Name of the University:Authors Note:
2AVIATION MANAGEMENTTable of ContentsIntroduction................................................................................................................................3Financial Analysis:.....................................................................................................................3Operational performance analysis of the entity:........................................................................6SWOT Analysis:........................................................................................................................9Recommendations and suggestions:........................................................................................10Reference..................................................................................................................................12Appendix 1: Consolidated Income Statement..........................................................................14Appendix 2: Consolidated financial position...........................................................................15Appendix 3: Financial Ratio Analysis.....................................................................................16
3AVIATION MANAGEMENTIntroductionIn this report, an attempt is made to critically analyse the commercial and operationalperformance of Virgin Atlantic. It is one of the most popular British airlines company. It isthe trading name of Virgin Atlantic Airways Limited and Virgin Atlantic InternationalLimited. Virgin Atlantic makes use of Boeing and Airbus wide-body aircraft for carrying outthe operations. It has operations in North America, Africa, Caribbean, Middle East and Asia,which is conducted from its main head office at London Heathrow and Gatwick Airport. Thecompany is currently considered the main competitor of British Airlines (Grant, 2016). Themain aim of this report is to critically analyse the financial and other metrics in order to gainan understanding of the position of the company as compared to industry. Further, the reportprovides strategic recommendations. Financial Analysis:In order to conduct the financial analysis of the entity various ratios have been used. Itwill be very effective and efficient way of finding out the current financial position and thefinancial performance of the entity. The ratios are as follows:Net profit margin ratio:NET PROFIT MARGIN Particulars20152016NET PROFIT 80.1187.3
4AVIATION MANAGEMENTTOTAL REVENUE 2781.92689.9NET PROFIT MARGIN 3%7%This ratio indicates the profit earning ability of the company. This ratio furtherindicates the operational efficiency of the company. In the present case, it is clear that thecompany has been able to significantly increase its profitability from the year 2015 to 2016.This indicates that the operational efficiency of the company has increased (Treanor et al.,2014). Return on equity ratio:RETURN ON EQUITY 20152016NET INCOME 80.1186.4SHAREHOLDERS EQUITY100100RETURN ON EQUITY 80%186%This ratio indicates the ability of the company to earn profit by utilising the funds of theinvestor. The company must ensure that the returns of offered by the company matches withthe expectations of the shareholders because that is the sole reason of investment of theshareholders in the company (Vogel, 2014). In the given case, it can be seen that in the year2016 the return on equity of the company has increased in comparison to the previous year.This shows that the company has improved the ability to utilise the funds of the investors. Current Ratio:CURRENT RATIO 20152016CURRENT ASSETS 970.1895.7CURRENT LIABILITIES 401.4228.1CURRENT RATIO 2.423.93
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