Interest-bearing liabilities | Assessment

FINANCE 1
FINANCE

FINANCE 2
Qantas:
The following table shows the various sources of finance of the company:
Qantas
(Amounts in $ in
millions)
Particulars 2017 2012
Interest-bearing
liabilities
4,405.0
0
5,430.0
0
Issued capital
3,259.0
0
4,729.0
0
Treasury shares
-
206.00
-
42.00
Reserves
12.0
0
36.0
0
Retained earnings
472.0
0
1,162.0
0
Total
7,942.0
0
11,315.0
0
(Qantas, 2019).

FINANCE 3
From the above table, it can be ascertained that there was an increase in the amount of the
interest bearing liabilities for the company which could comprise of the borrowings which is
of long term in nature. The company has sold off some of its shares which could be seen from
the reduction in the amount of the issued capital.
The company has used a certain amount of money from its reserves and retained earnings.
The company exists in the environment of rising bond yields but then it is also true that the
company may ne benefiting from the negative working capital position. The company is able
to use the funds from the up-front payments being given by the banks for the frequent flyer
program. Also, the company’s working capital position is the highest amongst the ASX 200
companies.
The company has recorded the full year profit which ranges between $1.55 billion and $ 1.6
million even when there was a sharp increase in the prices of oil. This goes on to highlight
another unique factor of the business model. This is yet another step in the making of the
shares of the company to yield more on its bonds (Business insider, 2019).
Amazon:
The following table shows the various sources of finance of the company:
Amazon
(Amounts in $ in
millions)
Particulars 2017 2012