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Analysis of Virgin Australia and Qantas Annual Reports applying Altman Z-Score Model

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Added on  2019-11-29

Analysis of Virgin Australia and Qantas Annual Reports applying Altman Z-Score Model

   Added on 2019-11-29

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Analysis of Virgin Australia and QantasAnnual Reports applying Altman Z-ScoremodelAssessment Task 1Student Name:Student IDSubject Name:Subject ID:Page | 1
Analysis of Virgin Australia and Qantas Annual Reports applying Altman Z-Score Model_1
Table of ContentsAnswer to Question No 1:...............................................................................................................3Answer to Question No 2................................................................................................................9Reference List................................................................................................................................12Page | 2
Analysis of Virgin Australia and Qantas Annual Reports applying Altman Z-Score Model_2
Answer to Question No 1: Qantas Altman Z-Score:Heads20152016Net Working Capital (CA-CL)(2421)(3570)Total Assets17,53016,705Total Current Assets5,0493,458Total Current Liabilities 74707028EBIT1,2331,751Retained Earning(1,146)(175)Market Value of Equity55778.4102900.2Book Value of Total Liabilities1135610185Sales or Revenue15,81616,200Qantas 2015 Altman Z-Score:X1= Total Working Capital/Total Assets X1= (Total Current Assets-Total Current Liabilities)/Total AssetsX1= -0.138X2= Retained Earnings/ Total AssetsPage | 3
Analysis of Virgin Australia and Qantas Annual Reports applying Altman Z-Score Model_3
X2= -0.065X3= EBIT/ Total AssetsX3= 0.070X4=Market Value Equity/Book Value of Total Liabilities X4= 4.911X5= Revenue /Total AssetsX5= 0.902Z= 1.2 (X1) + 1.4(X2)+ 3.3(X3) + 0.6(X4) + 1.0 (X5)Z=1.2*20,276 + 1.4*(1,146) + 3.3*1,751 + 0.6*16,849 + 1.0*7,966Z= 3.823Qantas 2016 Altman Z-Score:X1= Total Working Capital/Total Assets X1= (Total Current Assets-Total Current Liabilities)/Total AssetsX1= -0.213X2= Retained Earnings/ Total AssetsX2=-0.010X3= EBIT/ Total AssetsPage | 4
Analysis of Virgin Australia and Qantas Annual Reports applying Altman Z-Score Model_4

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