Ratio Analysis of British Airways (2012, 2013, 2014)
Financial management is essential for every organization, whether the large or small. Each firm has restricted possessions and materials; so an effective administration of all the properties and possessions specifically of financial resources is significant (Wood, Frank, Sangste & Alan, 2008). I made this comprehensive report for ration analysis by emphasizing on most important aspects of financial management that is “Ratio Analysis”. The main purpose of report is to discover efficiency of administration. In this report I take financial reports of three years which are 2012, 2013 and 2014 respectively for ration analysis. I nominated British Airways Company for the purpose of conducting ratio analysis. British Airways company is one of most famous travelling companies in the world that provide multinational an d local organized facilities for the deportment of travelers and freight. It moves to nearly 400 endpoints globally. The firm gives carrier promotion, aircraft funding, aircraft preservation, bundle outings, and assurance facilities. As of December 31, 2014, it is functioned a taskforce of 278 airplanes. The corporation was originated in 1972 and is founded in Harmon’s worth, the United Kingdom. British Airways Plc is a secondary of Worldwide Consolidated Airlines Group S.A.
Abstract:
Company Introduction:
Ratio Analysis British Airways
1. PROFITABILITY RATIOS:
Gross Profit Margin:
Operating Profit Margin:
Net Profit Margin:
2. LIQUIDITY RATIOS:
Current Ratio:
Quick Ratio:
Cash Ratio:
3. EFFICIENCY RATIO:
Inventory Turnover Ratio:
Receivable Turnover Ratio:
Payable Turnover Ratio:
Average inventory Processing Period:
Average Receivable Collection Period:
Average Payable Payment Period:
Cash Conversion Cycle:
4. INVESTMENT RATIOS:
Return on Equity:
Return on Assets:
5. FINANCIAL GEARING RATIOS:
Debt to Equity Ratio:
Interest Coverage Ratio:
Equity Ratio:
Debt Ratio:
Write about income statement using balance sheet:
Limitations of Ratio Analysis:
Conclusion:
Company Introduction:
Ratio Analysis British Airways
1. PROFITABILITY RATIOS:
Gross Profit Margin:
Operating Profit Margin:
Net Profit Margin:
2. LIQUIDITY RATIOS:
Current Ratio:
Quick Ratio:
Cash Ratio:
3. EFFICIENCY RATIO:
Inventory Turnover Ratio:
Receivable Turnover Ratio:
Payable Turnover Ratio:
Average inventory Processing Period:
Average Receivable Collection Period:
Average Payable Payment Period:
Cash Conversion Cycle:
4. INVESTMENT RATIOS:
Return on Equity:
Return on Assets:
5. FINANCIAL GEARING RATIOS:
Debt to Equity Ratio:
Interest Coverage Ratio:
Equity Ratio:
Debt Ratio:
Write about income statement using balance sheet:
Limitations of Ratio Analysis:
Conclusion:
