Beruflich Dokumente
Kultur Dokumente
Prepared by: VINCENT MICAH FARRUKH, MUHAMMAD BABUR BUSAYO FEMI OJO KORNILOV VITALY
COMPANY PROFILE
Established in 1920, Australias largest domestic and international airline Employs approximately 32,500 personnel
Flight route Operating around 5,600 flights a week to 59 cities and regional destinations in all states and mainland territories Fleets Operates a fleet of 252 aircraft, comprising of Boeing 747s, 767s, 737s and 717s, Airbus A380s, A330s and A320s, Bombardier Dash 8s and Bombardier Q400s
Strategies
5 year strategic plan. Changes are expected to strip tens of millions of dollars of operating costs These include Cutting :1000 jobs from its 36000 workforce Shifting its base closer to Asia Changing its fleet plan by buying lots of the fuel efficient Airbus Seeking more strategic alliances
Profitability Ratio
Profitability ratios show how well a company is able to perform and return profits to the business Qantas profitability increases in 2010 and 2011 showing that the company is better prepared to handle downtrends brought on by adverse conditions of the global financial meltdown
Profitability Ratio
Year/ Ratio Return on total assets (ROA) 4.01% 3.77% 0.71% 0.86% 1.26% 2007 2008 2009 2010 2011
Return on capital
Employed (ROCE) Gross profit margin Net profit Margin 10.70% 7.34% 5.18% 8.44% 7.21% 4.71% 2.15% 1.57% 0.98% 2.82% 2.27% 1.24% 3.86% 1.76% 1.76%
Return on Equity
12.68%
12.94%
2.48%
2.89%
4.26%
Profitabilty
12 10 8 6 4 2 Return on ordinary shareholders' funds(ROSF) Return on total assets (ROA) Return on capital Employed (ROCE) Gross profit margin
0
2007 2008 2009 2010 2011
Gearing
2007 3.16476
2008 3.43513
2009 3.47771
2010 3.32887
2011 3.39099
74.718
-24.8904
10.409
4.16
3.9646
27.6303
27.2193
32.7147
33.6733
41.2128
ratios
Gearing
80
60
40
20
2007
-20
2008
2009
2010
2011
-40
Financial leverage Interest Cover Ration NET Gearing ratios
Efficiency Ratio
Efficiency ratios are used to analyse how well a company uses its assets and liabilities internally Qantas asset turn over period decline from 2009 to 2011 after an increment in the year 2008 which indicates that the company experience low turnover in utilizing it asset to generate sales PPE turnovers as well steadily decline from the year 2009 to 2011,this indicates the company effectiveness in using the investment in fixed assets to generate revenues declines at this years The working capital all through the year shows is on the negative side, That means Qantas is currently unable to meet its short-term liabilities with its current assets which indicate that Qantas is performing is not liquid.
EFFICIENCY
Year/ Ratio Asset turnover period(days) PPE Turnover Working Capital Turnover
2007
2008
2009
2010
2011
282 1.23
292 1.28
265 1.20
252 1.10
261 1.09
-17.432
-7.9231
-19.455 -33.672
-25.074
Year/ Ratio
2007
2008
2009
2010
2011
Current Ratio
0.86624
0.73859
0.88859
0.93447
0.90473
0.83851
0.71023
0.85136
0.88335
0.84507
Liquidity
1 0.9 0.8 0.7 0.6 0.5
0.4
0.3 0.2 0.1 0 2007 Current Ratio 2008 2009 2010 2011 Acid Test Ratio Cash Flow Operation Ratio
Investment Ratio
A ratio that helps to determine whether an investment in a particular entity is likely to be profitable and safe, from the ratio derived from Qantas Dividend per share increased drastically at 2008 but later went down at 2009, dividend pay-out ratio Dividend yield high in 2008 and dropped in 2009 No dividend payments for the year 2010 and 2011. Earnings per share as Fiscal year 2007 to 2008 were high but depreciated drastically at 2009 till 2011 price earnings Ratio was high 2009 till 2010 before it fell at 2011 This indicates that the company were more valued at the stock market at 2009 till 2011.
INVESTMENT RATIO
2007 Dividend per share Dividend payout ratio Dividend yield ratio Earnings per share Operating cash flow per share Price earnings ratio 0.52902 0.23 0.543722 0.1 0.241704 0.45 0.279572 0.43 0.363324 0.26 37.8898 1.71 24.69091 89.5013 7.97 30.15966 81.8182 1.78 4.431599 5.069519 7.193472 6.69199 2008 16.9651 2009 2.50482 2010 2011 -
100 90 80
70
60 50 40 30 20 10 0 Dividend per share
2007
2008
2009
2010
2011
15
10
5
0
2007
2008
2009
2010
2011
Company Performance
Gross profit margin, Net Profit, Return on Investment
The gross profit margin ratio indicates Qantas Airways financial health; this shows investors how much gross profit every AUD of revenue the company is earning Compared with company average, there was a slight fall at the year 2008, then a sharp decline in the gross profit at 2009 till 2011 caused by lost in revenue / sale and Expenses, which was attributed to higher fuel prices, rising costs and falling demand as the global economy slows. Natural disasters and major weather events cost the airline A$224 million, including severe flooding and cyclones in Queensland, the Christchurch earthquake, the earthquake and tsunami in Japan and the Chilean volcanic ash cloud
Liquidity
The Current Ratios shows Qantas Airways had a higher current ratio during the fiscal year 2009, 2010, and year 2011 respectively, ranging from 0.89, 0.93 and 0.90 Quick ratio also reflects the company's financial strength or weakness, higher ratio shown in fiscal year 2007, 2010 and 2011 shows Qantas Airways had higher liquidity, and lower ratio during year 2008 shows a lower liquidity
Operating Cash Flow Ratio less than 1.0 throughout 2007 2011
Liquidity
1 0.8 0.6 0.4 0.2
0
2007 2008 2009
2010
2011
Current Ratio
Peer Analysis
Qantas and Air-NZ
Year/ Company
2007
2008
2009
2010
2011
4.981378 4.671095
0.45563 2.026693
1.86593
Qantas
5.18077
4.71147
0.98268
1.24165
1.7591
1
0 2007 2008 2009 Air New Zeland Qantas 2010 2011
Year/ Company
2007
2008
2009
2010
2011
Air NewZealand
12.24% 13.82%
1.30%
5.24%
5.39%
Qantas
12.69% 12.95%
2.50%
2.88%
4.26%
12.00%
10.00% 8.00% 6.00%
4.00%
2.00% 0.00%
2007
2008
Air New Zeland
2009
Qantas
2010
2011
FUTURE EXPECTATION
Based on the analysis and ratios, Qantas revenue has increased from 2010.
Growth recorded in gross profit and net profit in 2010 and 2011.
New 5 years strategic plan is based on cutting cost to reduce it expenses and increase its revenue,
Growth in revenue and profit expected in future years, increasing return on investment and reduce current liabilities. Return on shareholder fund expected to increase Market share price expected to appreciate in future.