Commercial aviation Management Assignment PDF
Added on 2021-04-21
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Leadership ManagementLanguages and Culture
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Running head: COMMERCIAL AVIATION MANAGEMENTCommercial Aviation ManagementName of the Student:Name of the University:Author Note
1COMMERCIAL AVIATION MANAGEMENTTable of ContentsIntroduction:...............................................................................................................................2Financial analysis:......................................................................................................................2Operational performance analysis:.............................................................................................5SWOT analysis of the airport:....................................................................................................5Suggestions and Recommendations:..........................................................................................8References................................................................................................................................10Appendices:..............................................................................................................................12
2COMMERCIAL AVIATION MANAGEMENTIntroduction:In this report, an effort has been made to conduct a financial and operational analysisof the airport and determine the state of operations and financial health of the company. Theanalysis will be done with the help of various financial ratios of the airport and detailedanalysis of the key performance indicators of the airport. The conclusion drawn from theresults of the analysis of the financial and operational indicators will enable suggestions andrecommendations to the company. Heathrow airport is one of the major airports in all of United Kingdom. It is in fact theworld’s second busiest airport. In addition to this it is the busiest airport in all of Europe. Financial analysis:The financial analysis will comprise of study of various type of ratios the results of whichwill have a direct implication with respect to the financial and non-financial performance ofthe airport (Wensveen, 2018). For being able to lead within any industry an entity is supposedto have a very strong financial performance base.a)Current ratio:CURRENT RATIO 20152016CURRENT ASSETS 10201118CURRENT LIABILITIES 14761594CURRENT RATIO 0.690.70The current ratio demonstrates the relationship between the current assets andcurrent liabilities of an entity. It establishes the ability of an entity to pay of its short
3COMMERCIAL AVIATION MANAGEMENTterm liabilities with the help of its current assets like cash and cash equivalents. It canbe easily deciphered that the current ratio of the company is very low. It is not a goodperformance indicator as it implies that the entity might become incapable to pay itsshort term debt in the near future due to non-availability of current or liquid assets(Madavan caes et al., 2016).b)Debt-equity ratio:DEBT EQUITY RATIO 20152016TOTAL LIABILITIES 1416514739EQUITY 24841760DEBT EQUITY RATIO 5.708.37The debt equity ratio demonstrates the liquidity position of an entity. Itprojects the results of the relationship between the total liabilities of the entity and thetotal stake holder’s equity of the entity. In this case it can be easily seen that the debt-equity ratio of the company has already reached a high risk degree and despite of thatthe ratio further increases which suggests that the entity is heavily levered. Theentity’s ability to pay back its liabilities via the funds of the stakeholders is reducingat year on year basis. The equity shareholder funds have reduced significantly overthe period of one year which is a very poor indicator for the solvency position of anyentity (Flouris & Oswald, 2016). c)Debt-asset ratio:DEBT ASSET RATIO 20152016TOTAL LIABILITIES 1416514739TOTAL ASSETS 1664916499DEBT ASSET RATIO 0.850.89
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