finance and ratio analysis

FINANCE AND RATIO ANALYSIS

Table of Contents
Introduction......................................................................................................................................3
a. Financial analysis of both companies..........................................................................................4
b. Industry Analysis.......................................................................................................................12
c. Recommendation.......................................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
Appendices....................................................................................................................................15

Introduction
Financial ratios are made using mathematical attributes subtracted from tax summaries to obtain
important data about an organization. The figures obtained on an organization's budget
summaries - cash flow, payroll description and revenue breakdown - are used to quantify and
analyze liquidity, impact, development, margins, profitability, production, evaluation and this is
just the beginning. .
Various cash allocations and significant concessions from competitors are planned to recognize
whether an organization is performing better or worse than the business norm. For example, the
inter-agency resource profit comparison helps an auditor or financial assistant find out which
organization is making the most of its resources.

a. Financial analysis of both companies
Profit margin %
2020 2019 2018 2017
0.00
5.00
10.00
15.00
20.00
25.00
INTERNATIONAL
CONSOLIDATED AIRLINES
GROUP
RYANAIR HOLDINGS
PUBLIC LIMITED COMPANY
Profit margin is a percentage of an organization’s profit (negotiating excluding all expenses)
separate from its income. Net Finance Share analyzes the benefits of the business and tells you
how much the organization is looking after its overall finances. It is always communicated as a
tariff.
This margin assumes variable cost revenues. It shows you how much everything costs without
fixed costs. Variable costs are all costs incurred on a cycle that may fluctuate with production
rates. Businesses use it to analyze product offerings, such as car or phone models.
The profit margin of Ryanair Plc is higher than IAG, thus Ryanari Plc has good performance
compared to IAG. But Ryanair Plc has negative growth rate since 2018, while IAG shown
positive growth in 2020. It can be estimated that Ryanari could further down in 2021; thus its
risky option.