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Accounting Analysis

In: Business and Management

Submitted By huangqj810
Words 4768
Pages 20
Table of Contents

* Executive Summary 2 * Company Profile 3 * Business Model 3 * Strategy 4 * Market Environment Analysis * Carbon Tax 4 * Tourism 5 * Industry Outlook 5 * SWOT Analysis 6 * Financial Analysis * Profitability 9 * Liquidity 16 * Solvency 17 * Comparison With Virgin Australia * Profitability 19 * Liquidity 20 * Solvency 21 * Conclusion and Recommendation 22

Reference 23 Appendix Calculation spreadsheet – Qantas 27 Calculation spreadsheet – Virgin Australia 28 *

Executive Summary

This report is prepared for the purpose of evaluating a potential equity investment in Qantas Airways Limited. The analysis is mainly conducted from two different approaches, including qualitative analysis by examining the overall market environment and Qantas’ operation strategies as well as quantitative analysis of the company’s financial performance. The financial analysis is mainly focused on its profitability, liquidity and solvency and we also selected one of its major competitor Virgin Australia for comparison purpose. Overall, we have concluded that Qantas may not have a satisfying financial performance currently, however, it has great potential for growth in the future. And therefore, we expressed a ‘buy’ recommendation for Qantas Airways Limited.

Company Profile
Qantas Airways Limited (QAN) is the largest airline service company in Australia. It mainly offers domestic and international passenger transportation services through two airline brands – Qantas and Jetstar. Jetstar Group is a low-cost airline operating in more than 60 domestic and international destinations. In together, Qantas Group flies more than 80...

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