Financial Analysis of the Qantas Company

Added on - 14 Jun 2021

  • 28

    Pages

  • 4673

    Words

  • 62

    Views

  • 0

    Downloads

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 6 of 28 pages
Running head:Financial analysis of the Qantas Company0|P a g eFinancial analysis ofthe Qantas Companymanagement
Financial analysis of the Qantas Company1Executive summaryWith the changes in time, each and every organization needs to make effectivechanges in the busienss. It is observed that in this report, financial analysis of the companyhas been taken by using the ratio analysis, horizontal analysis, vertical analysis of the annualfinancial data of Qantas Company. After that SWOT analysis and external environmentalanalysis of company has been taken into consideration. The main output of this report is tofind out the profitability and efficiency of the Qantas Company. The main finding is thatcompany has increased its turnover and market share.
Financial analysis of the Qantas Company2Table of ContentsExecutive summary....................................................................................................................1Introduction................................................................................................................................2Financial analysis of the Qantas Company................................................................................2Horizontal analysis of the Income Statement.............................................................................2Horizontal analysis of the balance Sheet...................................................................................3Vertical analysis of the Income statement.................................................................................6Vertical analysis of the Balance Sheet.......................................................................................6Ratio analysis of the Qantas Company......................................................................................8SWOT analysis.........................................................................................................................10Competitor’s analysis...............................................................................................................12Ethical considerations..............................................................................................................13External Environment analysis................................................................................................13Recommendation......................................................................................................................14Conclusion................................................................................................................................14References................................................................................................................................15
Financial analysis of the Qantas Company3
Financial analysis of the Qantas Company4IntroductionThis report emphasizes upon the financial analysis of company and depicts the resultsof the financial performance of company. The horizontal analysis, vertical analysis has beenused to evaluate the annual financial data of Qantas Company to identify whether companyhas been performing well or not in the market. In this report, Qantas Company has beenchosen for this report. The first section of this report will cover horizontal analysis, verticalanalysis and ratio analysis to evaluate the financial performance of company. After that,SWOT analysis section has been used to identify the strength, weakness, opportunity andthreats of the company. The Competitor analysis has also been used to evaluate the financialand business performance of other rivals in the same industry. The ethical consideration hasalso been used to identify whether Qantas has been working efficiently to increase thesustainable future of organization. The external environmental analysis has also been used toevaluate the threats and opportunity available to company in market. This analysis will revealthe possible outcomes and effective work function of the competitors and Qantas Company.In the end, the possible recommendation has been given for the better and effectivefunctioning of the Company. This recommendations will divulges the advice to investorswhether they should invest their capital in Qantas company or notQantas, (2017Financial analysis of the Qantas CompanyThis financial analysis has been done by using the ratio analysis, horizontal analysis andvertical analysis tools (Flannery, 2016).The Horizontal analysisThis analysis is used to evaluate the changes in the amounts of corresponding financialstatement items over a period of time. It is useful tool to analyze the financial trend of thecompany (Ehiedu, 2014).Horizontal analysis of the Income Statement(Qantas Company's INCOME STATEMENT Horizontal analysisFiscal year ends in February20172016Increase orDecrease($ in Million)AmountAmountAmountPrecentRevenue16,057$-143-1%
Financial analysis of the Qantas Company516,200.00Cost of revenue14,687$14,557.00Gross profit$4,010.00-4,010-100%Operating expenses$-0#DIV/0!Salary and wages4,033$4,033.0000%Fuel3,039$3,250.00-211-6%Aircraft operating variable$3,436.00$3,250.001866%Depreciation and amortization$1,382.00$1,224.00Non-cancellable aircraft operatinglease rentals$356.00$461.00-105-23%Interest Expense$46.00$65.00-19-29%Total operating expenses$12,292.00$12,283.0090%Operating income853$1,029.00-176-17%Earnings per share$46.40$49.40-3-6%Net income from continuingoperations$30,07,190.00$80,447.0029,26,7433638%InterpretationAfter evaluating the data by using the horizontal analysis, it is inferred that company hasdecreased its overall revenue and profitability. It is evaluated that company has increased itsoperating expense which has ultimately resulted to the negative results throughout the time(Baños-Caballero, García-Teruel & Martínez-Solano, 2014).Horizontal analysis of the balance SheetRevenue received in advance$3,685.00$3,525.00$160.005%Interest-bearing liabilities$$$3%
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document