Financial Ratio Analysis Qantas Airways Limited

Woolworths is the largest supermarket/grocery store chain in Australia, owned by Woolworths Limited. It is the largest retail company in Australia and New Zealand by market capitalization and sales. Along with Coles, Woolworths form a near duopoly of Australian supermarkets, together accounting for about 80% of the Australian market. Woolworths currently operates 933 Woolworths stores across Australia.

This report is a financial analysis of Qantas Airways Australian covering the last two complete financial years 2015 to 2016. The analysis will be conducted using a series of financial ratios drawn from the main categories of liquidity, profitability, and capital structure and market performance. The report will highlight what the ratios indicate in the context of the company’s operations. The report will endeavour to provide an overall assessment of the company’s performance for the most recent period and discussion about which aspect of the company’s financials has demonstrated the most improvement. The report recommendations will be supported by comparisons

The main focus of this report is to identify the legal classification, the characteristics, the life cycle stage of Qantas and one internal and external stakeholder that is affected by the activates of Qantas. The legal classification describes that Qantas is a public company and has changed its legal classification in the growth and maturity stages of the business life cycle. The characteristics of Qantas talks about the company's industrial classification and sector classification. The business life cycle is explained and gives reason why Qantas is in the renewal stage of post maturity. There is also description of one internal and external

Rivalry among industry competitors has caused attention to be focused on tariff levels. Airfare prices were at an all time low in 2009. This suggested a strong competitive rivalry based on price differentiation. This price differentiation will cause a dramatic loss in revenue if these prices continue to drop and this would lead to a reduced competitiveness. In an effort to safeguard revenue and reduce expenditure, Qantas has developed a strategy to deal with a change in the external competitive environment. .

Qantas’ financial performance has been very successful in recent years with the business recovering strongly from GFC and a large decrease in revenue to ear 377 million in 2010. The effective financial performance has been the result of effective profitability, liquidity, efficiency, return on capital, good solvency and growth including the establishment of a new airline (jet star).

The following report is a brief comparative analysis of two of Australia’s largest deposit-taking financial institutions (FI), Australia and New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corporation (Westpac). This report seeks to identify which of the FIs has a greater aggregate return per dollar of equity and thus establish the highest performer, or most profitable, of the two. The Return on Equity Model (ROE) (Koch & MacDonald,

The purpose of this study is to compare Spirit Airlines with American Airlines using the financial ratios of liquidity, activity, debt, profitability and the market, and to derive some concrete conclusions about the financial nature of Spirit Airlines. According to Spirit Airlines (2015) “Historic Stock Lookup,” from 2011 to 2014, the year-end stock prices have increased by 79.4%, which is outstanding. Thus, Spirit Airlines will be used as a benchmark in terms of comparing

Ratio analysis is a very useful tool when it comes to understanding the performance of the company. It highlights the strengths and the weaknesses of the company and pinpoints to the mangers and their subordinates as to which area of the company requires their attention be it prompt or gradual. The return on shareholder’s fund gives an estimate of the amount of profit available to be shared amongst the ordinary shareholders; where as the return on capital employed measures an organization 's profitability and the productivity with which its capital is utilized. Return on total assets is a profitability ratio that measures the net income created by total assets amid a period.

“With QantasLink recently being named the world’s best regional airline by Air Transport World and Network

The airline industry is an extremely competitive industry and is also a highly seasonal industry. Profit can be drastically affected by fluctuations in energy prices or economic downturns (Maverick, 2015). Key financial metrics utilized by analysts in the airline industry include the quick ratio, the return on assets ratio and the debt capitalization ratio, which was already covered earlier (Maverick, 2015).

Flight Centre is market leader in the Australian retail market with 20 % market share in 2001. In the corporate market they have similar market share. This position indicates strong customer satisfaction and ability to deliver on their promises.

Qantas is established in the Queensland outback in 1920 and after that it has become biggest domestic and international airline and strong brand in the Australia. It is enrolled as the Queensland and Northern Territory Aerial Services Limited (QANTAS) and the group two airlines brands are Qantas and Jetstar those provides transportation services of the customers. Qantas created its strong brand reputation through deliver safe and secure services, focus on customer services, maintain reliability of operations and focus on maintenance, engineering and technology (Qantas Airways Limited, 2014). Quanta main business aims or objectives are:

In 2011, Qantas suffered complications from inside and outside the brand. Several job cuts and structural changes, their focus on returns to stock holders and not its responsibilities to the share - holders all added to their external issues. The external issues that rose were the increase of new competitors, changes in consumer decision making, the high demand of customers for lower rates and better quality. Lastly, Australians began their international travels with other international brands. 2016 has proven to be a turnaround year for Qantas relying largely on the lowered prices of oil and the falling Australian currency. Qantas recovered from a $2.8 billion loss in 2014 to a net profit of $688 million within six months. The turnaround has been described as “one of the most remarkable in history”

Combined, Qantas along Emirates offer 98 weekly routes between Dubai and Australia. This deal improved Qantas’ profit before tax with an increase of 80/90 million A$ in 2012/2013 while projecting an increase of around 400 million A$ in the financial year 2013/2014 according to an analyst at Macquarie (Joyce, 2013). This alliance surpassed the existing partnership - Etihad Airways/Virgin Australia which covers only 30 European routes (Varley, 2013). Ultimately, the alliance helped divert capital resources from Europe to

Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput. A second reason for some of the