Financial Analysis of Flight Centre Travel Group (FLT) in 2021

FLT
FIN600 T1 2022
NAME: STUDENT ID:

Student name – ID FIN600 T1 2022
Assignment – FLT
Executive Summary
The current study has given emphasis on evaluating the different types of financial
events that has affected the performance of organization. from the economic outlook it can
be mentioned that there is inclining trend of growth for the particular sector. The ratio analysis
shows the competitiveness, profitability, efficiency, liquidity and gearing of FLT. Future
expectations for the company are high. The company is not capable to attract the investors.
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Student name – ID FIN600 T1 2022
Assignment – FLT
Contents
Page Number
1 Introduction - Background and Business 2
2 Company Analysis - Current financial performance, Key financial highlights,
Economic outlook
3 Ratio Analysis
3.1 Profitability ratios
3.2 Efficiency ratios
3.3 Liquidity ratios
3.4 Gearing ratios
4 Recommendations and overall assessment
5 References/Bibliography
Appendices – attached Excel Spreadsheet
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Student name – ID FIN600 T1 2022
Assignment – FLT
1 Introduction - Background and Business
Financial analysis of company is concerned with evaluating the different statements of
organization in turn strategic decision-making can be done. In the current era, it is important for the
organization to give emphasis on having significant evaluation in the strategic decision via
identifying lacking areas can be done.
The present report is based on Fight Centre Travel agency that is concerned with having the
reliable ability of offering services in aviation sector. The different areas in which it operates
comprise FCM travel solution, corporate travel, etc. the present investigation will highlight on how
effectively FLT is performing by paying attention on its financial information.
Current investigation will pay attention on highlighting the financial and events conducted
in the year 2021 and offering economic outlook so that depth understanding of its monetary position
can be obtained. Present report will emphasize on calculations of ratios and its evaluation in turn
identifying its overall performance as compared to previous year. Political pressure & external
environment impact on FLT and suggestion for improvement on the basis of ratios will be involved
in current report. The decision for investing or not in FLT will be highlighted in the present study.
2 Current Financial Performance, Key financial highlights, Economic outlook
Financial performance is related with having the effective evaluation of organizational
monetary aspects by referring income, financial position and cash flow statement so that appropriate
insights for decision-making can be done (Palepu and et.al., 2020). FLT is one of the successful
organization operating on larger scale by focusing on different target market. For gaining the
reliable success in the current era, firm largely focuses on having reliable financial activities that
can positively its growth & development.
Financial highlights/events of 2021
In the period of 2021, the organization has given emphasis on developing different kinds of
the strategies so that higher productiveness and profitability can be achieved. 2021 is the year when,
taking crucial actions has become important in respect to get the higher profitability and
sustainability via overcoming impact of COVID 19. In the financial terms the firm has adversely
got affected due to the various restrictions prevailing in environment that has declined its operating
activities and affected overall performance. In the year 2021 the sales revenue of the organization
has inclined which is due to the increase in leisure and corporate h recovery in USA.100% client
retention has enabled the firm to get the appropriate which has allowed to get the ability to obtain
the appropriate position in leisure market share. This has provided assistance to get the appropriate
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