Analysis of Ryanair's Financial Statements and Performance

This report offers a comprehensive analysis of Ryanair's financial performance based on its 2016 financial statements. It begins with an examination of the company's cash flow, profit and loss statements, and balance sheet, highlighting revenue and expense trends from 2012 to 2015, including earnings per share and net income. The report then delves into ratio analysis, evaluating profitability and liquidity through gross profit, net profit, current, and stock turnover ratios. Furthermore, the study identifies both short-run and long-run factors impacting Ryanair's cost structure, focusing on budgeting considerations. Finally, the report summarizes Ryanair's overall performance, emphasizing high-quality services, effective management strategies, and increasing sales and profits, concluding that Ryanair is performing well and providing strong competition in the airline industry.

Ryanair's 2016 year's
financial statements

Table of Contents
Introduction .....................................................................................................................................3
1.) Comment on Ryanair Cash flow/ profit and loss and balances sheet of Ryanair compan.....3
2 Ratio analysis...........................................................................................................................3
3.) Using the financial statements' identity both short and long run factor which affect the cost
structure .......................................................................................................................................4
4 Summarise Ryanair performance..............................................................................................5
References........................................................................................................................................6

Introduction
The present report is based on Ryanair company who is one of the leading company in
airline industry. The present study covers, financial performance of organization. The long and
short term factor which impact cost structures is explained
1.) Comment on Ryanair Cash flow/ profit and loss and balances sheet of Ryanair compan.
It has been observed from the data that total revenue earned by the enterprise has
increased from year 2012 and in the financial year 2015 it has reached upto 5,654 millions.
Increase in the revenues has been observed and it has helped in making improvement in the
performance of the organization (Ostroumova, Hatch and Rozhko, 2016). Moreover, Total
operating expenses of the company have also been increased and it has reached upto 1,224
Million in financial year 2015. net income that has been earned by the company was 560 million
in the financial year 2012 and it has reached upto 867 million in the year 2015. earning per share
in the financial year 2012 was 1.95 and it has reached to 3.20 in the year. Along with this
weighted average share in diluted category were 288 Million and it reached to 271 Million and it
shown decline in the price of shares. Net income that has been available with the business was
560 million. The income has been increased to 867 million in the financial year 2015. a sharp
increase in the performance of the enterprise has been observed. From the above it has been
analyzed that profitability of the business has improved and it has supported in making
improvement in overall performance of the business.
2 Ratio analysis
Gross profit 2766
Net sales 6536
Gross profit ratio 0.42319
5
Net profit 1559
Net sales 6536

Net profit ratio 0.23852
5
Current assets 4822
Current liability 3370
Current ratio 1.43086
1
Stock 3000
Net sales 6536
Stock turnover
ratio
0.45899
6
Profitability: Gross profit of organization is increases year by year which show that company is
performing well. Gross profit of Ryanair is increase because it provide high quality services to
its customer.
Liquidity: Ryanair company current ratio is 1.43 and its stock turn over ratio is 0.45
performance: Overall Ryanair performance is well which show that company is performing best
and its overall service are of high quality as compare to other airways' company. This show
3.) Using the financial statements' identity both short and long run factor which affect the cost
structure
Budgeting is referred to be one of the most spectacular concern of almost all sort of
organizations where Ryanair is together concerned about the same to a greater extent. It is
basically due to its another spectacular concern where it reflects upon the financial statements of
Ryanair. The present section is required to identify the both the short run and long run factors of
budgeting that tends to impact upon the accepted cost structure of Ryanair. It is where there
customer tactic of budgeting in the short run will cover some short term requisitions of the
enterprise to fulfill the requirement of raw materials and labor costs, etc., that too tends to change
from time to time. It is where the cost structure in the short run is mostly referred to consists of

the physical capital that are being used by the company (Ostroumova, Hatch and Rozhko,
2016). This involves a principal composition of both fixed and variable costs. It is where the
fixed costs are those expenses that do not tends to alter even after the level of production is being
changed by Ryanair. However, the variable cost in the short run has a definite intrusion in the
production process of Ryanair and increases with an increased tact of production. However, on
referring to the long run factors of budgeting that impacts upon the adopted cost structure of
Ryanair, it has been found that only variable costs are being enumerated in it. It is where any
affect in the production process of Ryanair will directly impact upon their expected goals and
objectives to a great extent.
4 Summarise Ryanair performance
As per the analysis made, it has been identified that the performance of Ryanair is highly
effective. There re different type of reasons that can be considered. In this context, of one of the
main reason is the high quality services that are being provided by them to customers. Al the
services that are provided by customers of cited firm is high. For this purpose, management of
the firm deliver their services users with training and development programs. Further, they also
consider the needs and requirement of customers. For this purpose, they frequently conduct
market research. This is helpful enough to understand the requirements and make changes in the
services as per the wants of the firm. Further, the profit made by cited firm is increasing
drastically and they raising at an increasing rate. Further, management is able to make
improvement in terms of technology and other developments. All these aspects that management
wants to implemented are being performed in an effective manner. These are done with the help
of growth that cited firm has attained in their organization. Further, the sales rate of the firm is
also increasing ans the profits they gain are used for the development of the business. Ryanair is
giving tough competition to its competitor and its high quality services attract large number of
customer.

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