TABLE OF CONTENTS Ratio Analysis.................................................................................................................................1 Conclusion......................................................................................................................................2
Ratio Analysis Ryanair Airlines Liquidity Ratios Current assets41894706 Current liabilities34123011 Inventory3.73.1 Quick assets4185.34702.9 Current ratio Current assets / current liabilities1.231.56 Quick ratio Current assets - (stock + prepaid expenses)1.231.56 Activity Ratios Inventory Turnover COS/ Inventory1481.891649.67 COS54835114 Inventory3.73.1 Average Collection Period (Accounts Receivable/ Sales)*3652.942.98 Accounts Receivables57.654.3 Sales71516647 Assets Turnover Sales / Net assets0.05%0.04% Sales3.73.1 Net assets78947566 Debt Ratios 1
Debt Ratios Total liabilities ÷ Total assets62.98%64.37% Total Liabilities76017717 Total assets1206911989 Times Interest Earned Ratio EBIT ÷ Interests1.211.14 EBIT14501315 Interests12001150 Profitability Ratios Return on Equity Net Income / Shareholder's Equity32.45%29.73% Net Income14501315 Shareholder's Equity44684423 Conclusion From the above ratios it could be identified that thefinancial health and position of company is adequate. The profitability of the company is high which could be analysed using the return over equity. The liquidity of company should be strong for meeting the short term obligation using the current assets of company. If the current ratio of company is not to the required level of 2:1. lower current ratio is matter of concern for the stockholders of company as well as company. Being a service company the activity ratios of company are considerably lower. They could not be used significantly for identifying the actual operations and performance of company as this ratio is used mostly for manufacturing concerns. The debt ratios are used for knowing the solvency of company. Company is having more than 60% of debt as against its assets. Company has not very high debts against its assets but increasing the loans above this will increase the risk of company. It will also increase the finance cost of company which will reduce the profits of company. 2
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