Financial Analysis of Flight Centre Travel Group Limited

HI – 5002 Finance for business
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Contents
Introduction:...............................................................................................................................3
Conclusion:..............................................................................................................................19
References:...............................................................................................................................20
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Introduction:
The finance for business report has been prepared in order to develop the understanding of
different users about various concepts related to financial analysis of a business using its
annual report. The company chosen here is Flight Centre Travel Group and the annual report
will be utilized to gain an understanding about the cost of capital and other financial aspects
of company. The report will include an explanation about the corporate governance of
company and the ownership structure will be mentioned in this report. The various
fundamental ratios will be calculated for the company and these will be analysed for the
purpose of analysing the company’s financial position. The recent announcements related to
the company will be pointed and the debt ratio will be discussed in order to understand the
capital structure of company. The report will include a letter of recommendation which will
be referenced to the investors for the purpose of making investment decision.
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1. Prepare a brief description of the company, outlining the core activities, the market(s)
in which it operates within and any factors in the companies’ history which you
consider help present a “picture” of your company.
The flight centre travel group can be recognized as one of the largest travel agency group in
Australia with having more than 2000 leisure and corporate and wholesale businesses in
around 11 countries all across the world. The first flight centre store has been opened in
Sydney in 1982 and then various other stores were opened in Melbourne and Brisbane in
1988. The company expanded its stores with around 50 stores in number and since then the
compony ah been expanding at a very fast rates. At present there are 689 flight centre stores
in Australia. The brand related with the company includes the specialist consultants who are
focused on business travel for small and medium enterprises. The company has self-owned
operations in across 23 countries and also having a corporate travel management network
which spans in more than 90 countries in the world. The same has resulted in expansion
activities of the company which are associated with diversifying the operation and services of
company (Flight Centre Travel Group, 2017).
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