Qantas and Virgin Australia have been Australia’s leading airlines and prime competitors in the regional market. An analysis of the airlines’ financial performance in the period 2015, 2016 and 2017 is presented in this report. The report begins with a short introduction into the dynamics of the airlines under review. The basis of financial analysis is discussed, where the six key financial analysis parameters (profitability, efficiency, liquidity, gearing, horizontal analysis and vertical analysis) are introduced, explained and summarized separately, for each airline.
Qantas fulfilled all criteria for a stable airline except in gearing and liquidity analysis whereas Virgin Australia fell short in profitability and efficiency. A comparative analysis is provided where the performance of both Qantas and Virgin Australia is closely studied. A business performance review specific to Qantas is presented with a focus on both financial and non-financial aspects. A conclusion is provided which details out the major findings which are a by-product of the analysis. Lastly, few recommendations are provided based on the summarized conclusion which is of financial and non-financial nature. Qantas was found to be highly profitable in this review period. Virgin Australia meanwhile suffered significant losses and was in the recovery stage at the end of the analysis period.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- Introduction
- Financial Analysis
- Profitability
- Efficiency
- Liquidity
- Gearing
- Horizontal Analysis
- Vertical Analysis
- Comparative analysis
- Business Performance of Qantas (2015-2016-2017)
- Conclusion
- Recommendations
- List of References
- Appendix - Sample Calculation Annexures
- Annexure 1: Profitability
- Annexure 2: Efficiency
- Annexure 3: Liquidity
- Annexure 4: Gearing
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report aims to analyze the financial performance of Qantas and Virgin Australia from 2015 to 2017. It uses key financial ratios and analytical techniques to assess the profitability, efficiency, liquidity, and gearing of both airlines. The analysis also includes a comparative study and a review of Qantas' business performance.
- Financial performance comparison of Qantas and Virgin Australia (2015-2017)
- Assessment of key financial ratios (profitability, efficiency, liquidity, gearing)
- Application of horizontal and vertical analysis techniques
- Comparative analysis of the two airlines' financial health
- Evaluation of Qantas' overall business performance
Zusammenfassung der Kapitel (Chapter Summaries)
Executive Summary: This section provides a concise overview of the report, highlighting the key findings of the financial analysis of Qantas and Virgin Australia from 2015 to 2017. It notes that Qantas generally performed well across key financial metrics, except for gearing and liquidity, while Virgin Australia faced challenges in profitability and efficiency. The summary briefly touches upon the comparative analysis and concludes with a mention of the final recommendations.
Introduction: This chapter introduces the context of the Australian airline industry, emphasizing the importance of safety and highlighting the strong safety records of both Qantas and Virgin Australia. It provides brief background information on both airlines, including their history, fleet size, and key partnerships (Qantas with Emirates and Virgin Australia with Etihad Airways). This sets the stage for the detailed financial analysis that follows.
Financial Analysis: This chapter forms the core of the report, delving into a comprehensive financial analysis of Qantas and Virgin Australia using four key ratios: profitability, efficiency, liquidity, and gearing. It introduces and explains each ratio, applying them to both airlines' financial data from 2015-2017. Furthermore, horizontal and vertical analyses of balance sheets and income statements are conducted to provide a more thorough understanding of the financial health of both companies. This multifaceted approach generates a holistic view of their financial standing.
Business Performance of Qantas (2015-2016-2017): This chapter focuses specifically on Qantas and extends beyond the purely financial aspects covered in the previous chapter to delve into a more holistic review of the airline's overall business performance. This would likely include non-financial aspects contributing to its success or challenges during the analyzed period, offering a deeper understanding of the factors influencing the airline's financial results.
Schlüsselwörter (Keywords)
Qantas, Virgin Australia, financial analysis, profitability, efficiency, liquidity, gearing, horizontal analysis, vertical analysis, comparative analysis, airline industry, financial performance, Australian airlines.
Qantas and Virgin Australia Financial Performance Analysis: Frequently Asked Questions
What is the purpose of this report?
This report analyzes the financial performance of Qantas and Virgin Australia from 2015 to 2017. It uses key financial ratios and analytical techniques to assess profitability, efficiency, liquidity, and gearing, including comparative analysis and a review of Qantas' business performance.
What key financial aspects are analyzed?
The analysis focuses on four key financial ratios: profitability, efficiency, liquidity, and gearing. Horizontal and vertical analyses of balance sheets and income statements are also conducted for a more comprehensive understanding.
Which analytical methods are used?
The report employs horizontal and vertical analysis techniques to examine the financial data of both airlines. A comparative analysis is also performed to highlight similarities and differences in their financial health.
What is the time period covered by the analysis?
The financial analysis covers the period from 2015 to 2017 for both Qantas and Virgin Australia.
What are the key findings regarding Qantas' performance?
The executive summary indicates that Qantas generally performed well across key financial metrics. However, challenges were noted in gearing and liquidity.
What are the key findings regarding Virgin Australia's performance?
The executive summary suggests that Virgin Australia faced challenges in profitability and efficiency during the analyzed period.
What is included in the "Business Performance of Qantas" chapter?
This chapter provides a holistic review of Qantas' business performance, extending beyond the purely financial aspects to include non-financial factors that contributed to its success or challenges during 2015-2017.
What does the report include besides the financial analysis?
In addition to the financial analysis, the report includes an executive summary, introduction, conclusion, recommendations, a list of references, and an appendix with sample calculations.
What are the key themes explored in the report?
Key themes include a comparison of the financial performance of Qantas and Virgin Australia, an assessment of key financial ratios, the application of horizontal and vertical analysis, a comparative analysis of their financial health, and an evaluation of Qantas' overall business performance.
Where can I find the detailed financial analysis?
The detailed financial analysis is presented in the "Financial Analysis" chapter, which forms the core of the report.
What is covered in the Appendix?
The appendix includes sample calculations related to profitability, efficiency, liquidity, and gearing (Annexures 1-4).
What is the overall conclusion of the report?
The overall conclusion and specific recommendations are detailed in the "Conclusion" and "Recommendations" sections of the report.
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- Vedhas Sabnis (Autor:in), 2018, Financial Analysis of the Airlines Qantas and Virgin Australia (2015 to 2017), München, GRIN Verlag, https://www.grin.com/document/948554
