Business Analysis & Valuation: Qantas Performance Evaluation Report

This report evaluates the financial performance of Qantas from 2013 to 2017, analyzing revenue, expenses, assets, liabilities, and equity. The analysis reveals improvements in revenue and expense management, though asset and equity values decreased. The report also includes a competitive forces analysis using Porter's Five Forces and a SWOT analysis, identifying threats, opportunities, and strategic recommendations for Qantas. Key findings highlight revenue increases and expense decreases, along with a decrease in assets, liabilities and equity. The report recommends improvements in revenue, asset deployment through leasing, and dividend management to attract investors. The report aims to understand the company's position and provide recommendations. It is a comprehensive analysis of Qantas' financial performance, incorporating industry analysis and strategic frameworks.

Evaluation of Qantas performance
Evaluation with the help of financial data is useful for the company as it reflects the auditor’s
report and response too in regards to how the company has been performing.
On the basis of assets, liabilities, and equity
On the basis of revenue and expenditure
From the above table, it can be seen that Qantas has been improving from 2013 to 2017. This
implies that positive aspects of business operations are generating positive revenues which
ultimately implies that the profitability of the company increased. On the other hand,
expenses of the company has shown a considerable decrease that contributed to increase in
the profitability (Qantas.com.au. 2013). This increase in company`s revenue may be due to
corporate and business level strategies by entering in international market with the subsidised

companies with an aim to serve huge international customer base. The majority of revenue
generation of revenue come up from Asian population. Due to cutthroat competition, Qantas
has to increase its business portfolio.
The very next table shows the position of assets and liabilities of Qantas which has shown a
decrease in 2017 when as compared to 2013. It shows a negative aspect of the organisation,
decrease in assets are not used properly as it can serve a good to sales increase and profit
making. The liabilities of the company has been decreasing that can be a good sign or
influence of IFRS 15, it is very clear that total liabilities of Qantas decreased from in 2017.
Above all, total equity of the company has been dropped by huge percentage in 2017, which
implies that the company has paid large dividend (Qantas, 2016).
Finding and similarities
The finding after evaluating the data of 2013 and 2017-
The company has shown an increase of .97 percent in revenue in 2017 when as compared to
2013. The company has shown a decrease in expenses of around 6.44 percent in 2017. The
data evaluation has depicted a decrease in total assets of approximately 14.75 percent in
2017. The total liabilities has been decreases to nearly around 3.97 percent in 2017. Total
equity has shown a decrease of around 40 percent in 2017. This shows that overall expenses
of 2013 was higher from 2017 from 6.44 percent, but it is good which further shows increase
in for profitability.
Recommendation
From the above analysis through porter`s five forces model and SWOT analysis, Qantas has
some laggings that may divert its shareholders and investors. It will be more adequate for the
existing and new investors to buy the stock in the light of following reasons. Qantas has to
improve its revenue as when comparison is conducted above; it does not reflect an adequate

attraction due to inefficiencies of profitability, overall the revenue is good and attract the
shareholders. Decrease in total equity indicates that the company has distributed a good sum
of dividend in the current years. To improve the asset deployment and reduce the purchase
prices, the company should start hiring the assets with the leasing policy.