Essay on Flight Centre Analysis

6877 Words Jul 22nd, 2013 28 Pages
5/23/2013 | By Peou Prak, Rina Nugraha, Alice Yang | Flight Centre Limited | Flight Centre Limited Fundamental analysis |

Flight Centre Limited | Flight Centre Limited Fundamental analysis |

Contents

Objective 3 Introduction 3 Business and Strategy Analysis 4 Accounting Analysis 12 Financial Analysis 16 Prospective Analysis 18 Conclusion and Recommendation
Appendices………………………………………………………………………………………………………………………………………26-31
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1.0 Objectives
The purpose of this report is to provide a fundamental analysis of Flight Centre Limited (Ltd) and provide recommendation for investors wishing to invest in this company. The recommendation was made based on a number of critical
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* Recommendation - finally a recommendation is made as to whether the investor should hold, buy, or sell its Flight Centre’s shares. 2.0 Introduction
Flight Centre Limited (FLT) started in the early 1980s and is an Australian-based company listed on Australian stock exchange (ASX). It is now ranked as the third largest Australian consumer service company with market capitalisation of approximately AU$4,117 million as at early May, 2013 and is employing over 7,000 employees in Australia. FLT is engaged in three main segments of travel retailing, corporate travel management to wholesaling business with a global presence but mainly focused in 5 geographical regimes in Australia, United States, United Kingdom, Asia and the rest of the world. FLT owned more than 30 brands including FCM Travel Solutions, Corporate Traveler, Escape Travel, Student Flights to Campus Travel and many more with a global networking spanned over 75 countries to develop and promote attractive and responsible holiday options. Some of the key competitors in Australia are Jetset Travelworld Limited, STA Travel LTD, and Webjet Limited.

3.0 Business and Strategic Analysis
3.1 Economy analysis:
Despite the sharply negative shocks, Australian tourism continues to deliver its services where we have witnessed an increase in tourism expenditures of 5% from 2010 and recently FLT had enjoyed a remarkable growth to become a