Analysis of Thomas Cook's Financial Ratios and Economic Factors

This report provides a comprehensive analysis of Thomas Cook's financial performance, examining the impact of economic factors and utilizing ratio analysis to assess the company's financial health over a three-year period. The report begins with an executive summary and introduction, establishing the relationship between economic factors and business performance. It then delves into the analysis of macroeconomic and microeconomic factors affecting Thomas Cook, including GDP growth, tourism industry trends, and the company's specific performance. Key financial ratios, such as Return on Capital Employed (ROCE), Net Profit Margin, Current Ratio, Average Receivables Days, and Average Payable Days, are calculated and evaluated to provide insights into the company's profitability, liquidity, and efficiency. The analysis highlights the deterioration of Thomas Cook's financial position, attributing it to factors like high debt levels and increased operational costs. The report concludes with recommendations for strategic actions, such as reducing debt and optimizing working capital, and offers insights into the company's collapse in 2019. The report uses economic diagrams to support the analysis and provides a table of contents for easy navigation.