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Capital Of Au $ 5000 : An Assessment Of The Viability, Stability And Profitability Of A Business

Decent Essays
Introduction Financial analysis refers to an assessment of the viability, stability and profitability of a business (Investopedia, 2015). The purpose of the report is to provide an investor with a company analysis, as well as an alternative option, to ensure a well-informed decision is made. A capital of AU$5000 is to be invested in either Air New Zealand Ltd, or alternatively, an Australian bank account offering 2.5% interest per annum. The three essential factors stakeholders and investors seek out in a company are its profitability, liquidity and the risk involved (Collings, 2015). By the end of the Air New Zealand Ltd. analysis and bank alternative option; the investor will have made a conclusive decision based on financial and non-financial information provided throughout the report. Air New Zealand Limited: A Longitudinal Analysis Air New Zealand Ltd. shares a rich and proud history, dating back to 1940 when the airline was renamed from pre-successor TEAL (Annual Reports, 2012-2014). In the early 2000s, Air New Zealand claimed international profile through its relationship with Lord of the Rings Trilogy; and have renewed the partnership with the franchise since (i.e. hobbit movies). Over the last three years; the continuous build of momentum regarding the company’s earnings is a reflection of its successful development and implementation strategies. Ultimately, providing a sustainable and profitable business will allow the company to retain stakeholders and
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