Ryanair financial analysis. Ryanair Holdings Plc: Financial ratios (RY4C 2019-01-06

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Financial Analysis for Ryanair and Easyjet

ryanair financial analysis

Asset Turnover point The rate of asset turnover for Easyjet and Ryanair increased gradually for the last three years. However, this may also show that the highly liquid state may be due to many payments being received by the companies. EasyJet Airline Company Limited is a British airline headquartered at London Luton Airport. European Business Review, 27 1 , 80-99. Moreover, the continuing growth of fuel price is the greatest concern to this company.

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Ryanair Holdings Plc: Financial ratios (RY4C

ryanair financial analysis

The ancillary strategy has been working well so far. This paper compares the financial performance of EasyJet Plc. In conclusion, there is a recommendation whether to invest on Easyjet and Ryanair's shares. Cash Flow Liquidity The cash liquidity ratio measures the total amount of cash assets available in the firm at from sales of securities, receipts from customers, and any other cash with which it can cover the short term liabilities. In 2014, it served 64. Firms who are cost leaders benefit from rivals which have prices lower or at the same level because they get extra profit for that and it opens the way for the barriers to enter the market Miller and Friesen, 1983. Ryanair is Europe's largest low-cost carrier, the 3rd largest airline in Europe in terms of passenger numbers and the largest in the world in terms of international passenger numbers.

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Financial Analysis for Ryanair and Easyjet

ryanair financial analysis

Analysis of financial statements is of utmost importance as this information is utilized by investors, managers and businessmen to make business and capital decisions. Other than the intense oligopolististic competitive forces characterized by fierce price discounting and non-price competition, many large companies are frequently forced to ground their fleets due to adverse changes in the operating environment. For airline industry and airline companies, the contributions of technology could be separated in three parts: to ensure aviation safety, to improve the quality of services and to make operations more efficient. However this section of the report discusses the comparison of the two companies in a summarized manner. Passenger expectations fulfilment is achieved by different types of surveys, mystery-passenger visit check and through online website. These included foreign exchange and interest rate fluctuations and output as mentioned in Haile and Pozo, cited in Shen et al, 2015, p. These financial ratios are not only used to analyze the performance of the company with its own performances but these ratios are also used to analyze the performance of the company with the performances of the competitors and industry.

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Comparative Financial Analysis of Easyjet & Ryanair

ryanair financial analysis

Competitive strategy: Techniques for analyzing industries and competitors. Fiscal year is Apr - Mar 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Ryanair Revenues or Net Sales 8. Summery and Recommendation 5 6. These factors make up the social factors which affect Ryanair and aviation industry. Financial ratios allow for comparisons between companies, between industries and also between a single company and its industry average or peer group average. No personal data is being tracked. In the same way, other stakeholders would be using these financial ratios such as competitors.

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Nice and profitable: How Ryanair revamped itself

ryanair financial analysis

Ryanair have to compete directly with other low cost carriers in the near future. Also, a fatal accident, such as a plane crash, would also have a major negative on Ryanair, as consumers may feel unsafe in regards to barding a Ryanair air craft. Fifthly, environmental factors include ecological and environmental aspects. The researcher has adapted a specific pattern i. By the close of 2014, the company is projected to ferry upwards of 160 million passengers annually. Ryanair and Easyjet Liquidity Ratios The liquidity ratios for Ryanair and Easyjet were relatively the same as their stocks play an insignificant role.

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Ryanair Financial Analysis

ryanair financial analysis

Countries in the world are faced with the enormous challenges of environmental issues, and sustainable development is an important way to solve this problem Gillespie, 2007. However, in 2013 and 2014, EasyJet posted a 5. Both ratios are acceptably good, even though EasyJet should struggle in the event of severe short-term industry shocks e. The net profits of easyJet increased by 70% in the year 2010 and with an increase of 10% in the share capital and reserves it resulted in increasing the return on ordinary shares by almost 55% as the return on ordinary shares increased from 5. So first the income statement of Ryanair has been analyzed vertically and then the income statement of easyJet has been vertically analyzed.

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Financial Analysis for Ryanair and Easyjet

ryanair financial analysis

The net profit of Ryanair did not increase with the same pace in the year 2011 on year to year comparison however the net profit still showed improvements. Although Boeing 737 helps Ryanair to save fuel of airplane, it is not enough at the moment. It is clearly seen that Ryanair was capable of translating its assets into constant increased sales revenue over the last three years. The airline has been characterised by rapid expansion, a result of the deregulation of the air industry in Europe in 1997 and the success of its low cost business model. The report starts with the introduction of the overall report along with the different sections and parts that the report covers.

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Ryanair Company Financial Information

ryanair financial analysis

Although the average load factor of Ryanair was lower than its competitor, there is still an increase of 13% Ryanair annual report, 2012. This figure may seem small, but for customers who travel with Ryanair on a frequent basis, this could lead to a fairly substantial amount of extra time consumed, with may lead to some disgruntled customers. To summarise, the threat of substitutes for Ryanair is low. The current ratio represents a firms margin of safety to cover sudden reductions in the cash flows, especially in the face of uncertain demand movements, high losses, or other impairment of inflows. As the financial crisis and the European debt crisis have an obvious negative influence on the global economy, the aircraft industry has experienced some decline for the last few years.

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