Qantas and Seek Limited: Financial Analysis and Share Performance

This article provides a financial analysis of Qantas and Seek Limited, including their products and services, CEO salary, profit/loss after tax, total assets, number of employees, and share performance. It also includes recommendations for investing in these companies.

BAO1101 ACCOUNTING FOR
DECISION MAKING
SEMESTER 2 / 2018

TABLE OF CONTENTS
Part 2..........................................................................................................................................4
A.............................................................................................................................................4
Qantas Group.........................................................................................................................4
Products and Services........................................................................................................4
Chief Executive Officer.....................................................................................................4
Salary of Chief Executive Officer......................................................................................4
Profit / Loss after Tax from 2017.......................................................................................4
Latest Dividend Paid – Dividend Per Share and Date Paid...............................................4
Total Assets – from 2017...................................................................................................4
Number Of Employees.......................................................................................................4
Seek Limited..........................................................................................................................5
Products and Services........................................................................................................5
Chief Executive Officer.....................................................................................................5
Salary of Chief Executive Officer......................................................................................5
Profit / Loss after Tax from 2017.......................................................................................5
Latest Dividend Paid – Dividend Per Share and Date Paid...............................................5
Total Assets – from 2017...................................................................................................5
Number Of Employees.......................................................................................................5
Share price at the end of trading on Monday 13 August 2018...........................................5
B.............................................................................................................................................6
C.............................................................................................................................................8
Share Performance of Qantas Ltd......................................................................................9
Share performance of Seek Ltd........................................................................................10
D...........................................................................................................................................10
E...........................................................................................................................................10
Recommendations............................................................................................................10

Part 3........................................................................................................................................11
A...........................................................................................................................................11
B...........................................................................................................................................11
Qantas Group.......................................................................................................................12
Profitability ratio..............................................................................................................12
Stability ratio....................................................................................................................12
Liquidity ratio...................................................................................................................13
Seek Limited........................................................................................................................13
Profitability ratio..............................................................................................................13
Stability ratio....................................................................................................................13
Liquidity ratio...................................................................................................................13
References................................................................................................................................14

PART 2
A
Qantas Group
Products and Services
The airline brand of Qantas work locally, internationally and regionally services, the
diversified portfolio of Group of subsidiary based business such as Qantas Freight Enterprises
and Qantas Frequent Flyer and so on (Qantas, 2018).
Chief Executive Officer
The Chief Executive Office of the Qantas which is an airline company based in Australia is
Alan Joyce (Qantas, 2018).
Salary of Chief Executive Officer
The CEO of the Qantas has the pat structure of A$25m, CEO which is Alan Joyce is stated as
the highest paid executive of airline throughout the world twice the annual structure to
A$24.5m, subsequent to the turnaround at the airline of Australia.
Profit / Loss after Tax from 2017
In the year 2017, the profit after tax of the Group was $853m (Annual Report of Qantas,
2017).
Latest Dividend Paid – Dividend Per Share and Date Paid
Qantas Group
Dividend 0.22
Date September 12, 2018
Total Assets – from 2017
In the year 2017, the total assets of the Qantas Airways were 18,026.
Number Of Employees
The Qantas Airways Limited in the year has employed 29596 employees with Australia
inclusive of the employees from each and every subsidiary under the supervision of company
(Qantas, 2017).

Seek Limited
Products and Services
The Seek Limited suits the jobseekers and recruits with better future and career-related scope
and associated online services. It also offers and distributes vocational based training and
development with the best educational courses available. In addition, it also provides
advertisement services as well as online based employment (Annual Reports.com, 2018). The
products of the company are inclusive of TalentSearch, recommendations and Talent Search,
alongside the service including employment and job Finder Company, integrated with the
top-notch and renowned brands.
Chief Executive Officer
The Co-founder as well the Chief Executive Officer of the Seek Limited is Andrew Reuven
Bassat (Seek, 2018).
Salary of Chief Executive Officer
The CEO of the Seek Limited have earns salary of AU$175,463 on a yearly basis
approximately.
Profit / Loss after Tax from 2017
During the year the net profit after tax was $ 362.0m.
Latest Dividend Paid – Dividend per Share and Date Paid
(Source: Yahoo Finance, 2018)
Qantas Group
Dividend 0.1
Date September 5, 2018
Total Assets – from 2017
As on June 2017, the Seek Limited possessed the total assets of $3,683.0m wherein the 73%
belonged to long-life intangible assets (Annual Report of Seek Limited, 2017).
Number of Employees
The listing of Seek limited is done on the Australian Securities Exchange, wherein it is
considered one of the 100 companies, having employees of more than 6000.
Share price at the end of trading on Monday 13 August 2018
(Source: Yahoo Finance, 2018)

Date Open High Low Close Adj Close Volume
Qantas Ltd
13-08-18 6.64 6.71 6.585 6.61 6.506232 2326112
Seek Ltd
13-08-18 20.37 20.51 20.07 20.14 19.93411 574503
B
8/13/2018
8/15/2018
8/17/2018
8/19/2018
8/21/2018
8/23/2018
8/25/2018
8/27/2018
8/29/2018
8/31/2018
9/2/2018
9/4/2018
9/6/2018
0
5
10
15
20
25
Share price movements
Closing price of Qantas ($)
Closing price of Seek Ltd ($)
Figure 1: Share price movements of Qantas and Seek Ltd
Table 1: Statement showing share price movements
(Source: Yahoo Finance, 2018)
Date The closing price of Qantas ($) The closing price of Seek Ltd ($)
13-08-18 6.61 20.14
14-08-18 6.6 20.65
15-08-18 6.61 21.29
16-08-18 6.74 21.97
17-08-18 6.62 22.31
20-08-18 6.76 22.06

21-08-18 6.83 21.93
22-08-18 6.72 21.88
23-08-18 6.53 21.33
24-08-18 6.35 21.63
27-08-18 6.39 21.96
28-08-18 6.45 22.17
29-08-18 6.57 21.88
30-08-18 6.44 22.37
31-08-18 6.43 22.40
03-09-18 6.42 22.68
04-09-18 6.37 22.52
05-09-18 6.25 22.21
06-09-18 6.15 21.51
07-09-18 6.19 21.29
8/13/2018
8/15/2018
8/17/2018
8/19/2018
8/21/2018
8/23/2018
8/25/2018
8/27/2018
8/29/2018
8/31/2018
9/2/2018
9/4/2018
9/6/2018
6100
6150
6200
6250
6300
6350
6400
6450
6500
Closing price of All ordinary index
Closing price of All ordinary
index
Figure 2: Movements in All ordinary index

Table 2: Statement showing movements in all ordinary index
(Source: Yahoo Finance, 2018)
Date The closing price of All ordinary index
13-08-18 6341.3
14-08-18 6386.2
15-08-18 6415.7
16-08-18 6412.6
17-08-18 6426.2
20-08-18 6435.1
21-08-18 6383
22-08-18 6373.8
23-08-18 6360.3
24-08-18 6357.9
27-08-18 6381.1
28-08-18 6413.6
29-08-18 6457
30-08-18 6460.5
31-08-18 6427.8
03-09-18 6416.5
04-09-18 6398.9
05-09-18 6339.2
06-09-18 6267.8
07-09-18 6252.3

C
Table 3: Comparison of movement of stock price and all ordinary index
(Source: Yahoo Finance, 2018)
Date
Movements of
Qantas stock
Movement of All ordinary
index Movements of Seek stock
13-08-18 0 0 0
14-08-18 -0.01 44.90039 0.510001
15-08-18 0.01 29.5 0.640001
16-08-18 0.13 -3.1001 0.679998
17-08-18 -0.12 13.6001 0.34
20-08-18 0.14 8.899903 -0.25
21-08-18 0.07 -52.1001 -0.13
22-08-18 -0.11 -9.2002 -0.05
23-08-18 -0.19 -13.5 -0.55
24-08-18 -0.18 -2.3999 0.299999
27-08-18 0.04 23.2002 0.33
28-08-18 0.06 32.5 0.210001
29-08-18 0.12 43.3999 -0.29
30-08-18 -0.13 3.5 0.490002
31-08-18 -0.01 -32.7002 0.029999
03-09-18 -0.01 -11.2998 0.28
04-09-18 -0.05 -17.6001 -0.16
05-09-18 -0.12 -59.6997 -0.31
06-09-18 -0.1 -71.4004 -0.7
07-09-18 0.04 -15.5 -0.22

Share Performance of Qantas Ltd
The Qantas Airways Limited share price is positioned at the 52-week increased, irrespective
of the fact that the company is providing no news in the market presently (James, 2018). The
lift in share price back to the various upgrades in brokers comprising from Goldman Sachs
lately to a ‘buy’. However, in comparison to a market index, there is a contradictory trend
but due to the lower beta performance of the company is overall good and it is expected that
the price of the company will be increased in the near future.
Share performance of Seek Ltd
The Seek Limited shares have forced increasing trend today and have arrived at high of very
first time at $21.34. Further, these current earnings state that the shares of Seek have shown a
tremendous rise of 30% seeing as this time last year (Motley Fool Staff, 2017). The company
is performing far better than the market index as despite reduction in the index there is an
increase in share price or less decline in price.
D
Table 4: Statement showing the computation of Gain or Loss on the portfolio in the tracking
period
Qantas Ltd Seek Ltd Total
Initial amount of investment $5,000 $5,000 $10,000
Opening value of a share $6.61 20.14
No of share purchased (A/B) 756 248
Closing value of share $6.19 $21.29
Value of investment $4,682 $5,286 $9,968
Gain or loss ($318) $286 ($32)
E
Recommendations
Company Recommendatio
n
Justification
Qantas Ltd Buy The share price of the company is declining, but the
overall performance of the company is strengthening thus
it is expected that there will be a hike in the long term in

share prices of the company.
Seek Ltd Sell The company is performing far better than the market
index as despite reduction in the index there is an
increase in share price or less decline in price which
shows it is right time to sell the profits of the company to
realise the gain.
PART 3
A
Table 5: Key financials of Qantas and Seek Limited
Qantas Seek limited
Revenue / Sales 16,057 1230.5
Interest Expense (189) (29.3)
EBIT 1,590 449.1
Net Profit Before Tax 1,181 437.3
Net Profit After Tax 853 362.0
Inventory
Current Assets 3,119 841.9
Total Assets 6,355.8 3,683.0
Current Liabilities 7,095 550.0
Total Liabilities 13,681 1,643.1
Total Equity 3,540 2,039.9
(Source: Annual report)
B
Table 6: Statement showing financial ratios of Qantas and Seek Ltd
Liquidity ratios Formula Qantas Seek

Current assets 3,119 841.9
Current liabilities 7,095 550
Stock 351 0
Current ratio current assets/ current liabilities 0.44 1.53
Quick ratio current assets-stock/ current liabilities 0.39 1.53
Profitability ratios Formula Qantas Seek
Sales 16,057 1230.5
Operating profit 1,590 449.1
Net profit 853 362
Operating profit ratio operating profit/ sales *100 10% 36%
Net profit ratio net profit /sales *100 5% 29%
Solvency ratio Formula Qantas Seek
Debt 13,681 1,643.10
Equity 3,540 2,039.90
Total assets 6,355.80 3,683.00
Debt to equity ratio Debt / equity 3.86 0.81
Equity ratio Equity / total assets 0.56 0.55
Qantas Group
Profitability ratio
The profitability of the firm shows moderate performance, as compared to the profits of Seek
Limited. However, the company has still scope of improvement so as to ensure a reasonable
flow of operations and working capital with better profitability.
Solvency ratio
In terms of solvency ratio, the Qantas Group is performing well; the company has effectively
managed both liability and assets, it has optimum utilized its total assets, while paid off the
liabilities, reflecting the optimal management of working capital.
Liquidity ratio
It can be said that the liquidity ratio the company is not matching the ideal ratio and required
to be ideal in terms of the current ratio than 1:5, as because the company’s current ratio is
showing minus trend.

Seek Limited
Profitability ratio
The liquidity ratio of the company shows that the company has given more preference
towards equity and less consideration towards debt, due to this there is the non-effective
management of total assets. However, the company is required to stabilize the structure and
make improvement in such areas. As, the company’s profits are increasing over time, so it is
crucial for them to drive its ability to pay off its current liability by using its current asset
Solvency ratio
By considering the above table, it can be stated that company has improved its sales and
revenues, and generated more profitability, overall, the company is performing good in the
market, and is likely to perform much better in future times by focusing more on
improvement areas.
Liquidity ratio
The Seek limited has delivered excellent performance in terms of liquidity; the current ratio
that is 1.53 is matching the ideal criteria. A good increase in the performance of the company
has been noticed, reflecting the effective management of business operations and activities
Stability ratio.
By considering the analysis it can be said that performance of Seek Ltd is comparatively
better as they are having profitability and liquidity ratios. Therefore Seek Ltd is better option
for investment.

REFERENCES
Annual Report of Qantas, 2017. (pdf). Available from
<http://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/
file/annual-reports/2017AnnualReport.pdf >. [Accessed on 25 September 2018].
Annual Report of Seek Limited, 2017. (pdf). Available from <
http://www.annualreports.com/HostedData/AnnualReports/PDF/ASX_SEK_2017.pdf>.
[Accessed on 25 September 2018].
Annual Reports.com, 2018. SEEK Limited (Online). Available from <
http://www.annualreports.com/Company/SEEK-Limited>. [Accessed on 25 September
2018].
James, M, 2018. The SEEK Limited (ASX:SEK) share price just hit an all-time high: Too
late to invest? (Online). Available from < https://www.fool.com.au/2018/06/12/the-seek-
limited-asxsek-share-price-just-hit-an-all-time-high-too-late-to-invest/>. [Accessed on 25
September 2018].
Motley Fool Staff, 2017. Why the Qantas Airways Limited share price can’t stop climbing
(Online). Available from < https://www.fool.com.au/2017/10/06/why-the-qantas-airways-
limited-share-price-cant-stop-climbing/>. [Accessed on 25 September 2018].
Qantas, 2017. QANTAS GROUP FULL YEAR 2017 FINANCIAL RESULT (Online).
Available from < https://www.qantasnewsroom.com.au/media-releases/qantas-group-full-
year-2017-financial-result/>. [Accessed on 25 September 2018].
Yahoo Finance, 2018. Qantas Airways Limited (QAN.AX) (Online). Available from <
https://in.finance.yahoo.com/quote/QAN.AX/history?
period1=1534098600&period2=1536258600&interval=div
%7Csplit&filter=div&frequency=1d>. [Accessed on 25 September 2018].
Yahoo Finance, 2018. SEEK Limited (SEK.AX) (Online). Available from <
https://finance.yahoo.com/quote/SEK.AX/history?
period1=1506327965&period2=1537863965&interval=div
%7Csplit&filter=div&frequency=1d>. [Accessed on 25 September 2018].

Qantas, 2018. Our Company (Online). Available from <
https://www.qantas.com/travel/airlines/company/global/en>. [Accessed on 25 September
2018].
Seek, 2018. SEEK Executives (Online). Available from <
https://www.seek.com.au/about/executives/>. [Accessed on 25 September 2018].
Qantas, 2018. Our leadership (Online). Available from <
https://www.qantas.com/in/en/qantas-group/acting-responsibly/our-leadership.html>.
[Accessed on 25 September 2018].