Finance Final Assignment.docx - Finance and Accounting...

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Finance and Accounting Assignment Ahmed Mohamed Atiaa 357136 Pauline Hambach 364913 Instructor: Henk Jager Date of Submission: 18.04.2017
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Contents Introduction: ................................................................................................................................. 3 Ratio Analysis: ............................................................................................................................. 3 Liquidity Ratio Analysis: ............................................................................................................ 4 Working Capital: ................................................................................................................... 4 Current Ratio: ....................................................................................................................... 4 Cash Ratio: ........................................................................................................................... 5 Quick Ratio: .......................................................................................................................... 6 Activity Ratio Analysis: ............................................................................................................. 6 Inventory Turnover: ............................................................................................................... 6 Average asset turnover: ........................................................................................................ 7 Debt Ratios Analysis: ............................................................................................................... 8 Debt Ratio: ........................................................................................................................... 8 Times Interest Earned Ratio: ................................................................................................ 8 Debt-to-Equity Ratio: ............................................................................................................ 9 Return on Total Assets: ......................................................................................................... 9 Return on common equity: .................................................................................................. 10 Profitability Ratio Analysis: ..................................................................................................... 10 Operating Profit Margin: ...................................................................................................... 10 Net Profit Margin: ................................................................................................................ 11 Price/Earnings Ratio: .......................................................................................................... 11 Market Ratio Analysis: ............................................................................................................ 12 Dividend Yield: .................................................................................................................... 12 Dividend Payout: ................................................................................................................ 12 Capital Structure: ....................................................................................................................... 13 Gearing Ratio: ........................................................................................................................ 13 Stocks and bonds: ..................................................................................................................... 14 Stocks: ................................................................................................................................... 14 Bonds: .................................................................................................................................... 14 Comparison: ........................................................................................................................... 15 News Article 1: ........................................................................................................................... 16 Summary: ............................................................................................................................... 16 Commentary and Opinion: ..................................................................................................... 18 1
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News Article 2: ........................................................................................................................... 19 Opinion: .................................................................................................................................. 21 Conclusion: ............................................................................................................................ 22 References ................................................................................................................................ 23 Appendix A: News Article 1: ....................................................................................................... 26 Saudi’s STC beats Emirates to rank as Middle East’s most valuable brand ........................... 26 Appendix B: News Article 2: ....................................................................................................... 29 Emirates repays two bonds in full totalling more than USD $1.1 billion .................................. 29 Appendix C: Consolidated financial Statement: ......................................................................... 30 Emirates Airlines .................................................................................................................... 30 Lufthansa Airlines ................................................................................................................... 33 Qantas Airlines ....................................................................................................................... 37 2
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Introduction: Emirates airlines is one of the most known names in regards to the aviation industry, and this year’s winner of best Airline award, awarded by TripAdvisor. The idea for the airline was first mentioned by the year 1984, when Sheikh Mohammed bin Rashid al Maktoum and Mr. Maurice Flanagan (Director and general manager of dnata) discussed launching an airline in Dubai. Sheikh Mohammed and Mr. Flanagan to name the new airlines, Emirates Airlines, and build it on top of dnata. By the start of the new millennium, Emirates had a workforce total of 11,000. Dubai international airport had a capacity of 22 million passengers a year, and Emirates was part of the South Asian, Australian, African, and European Airline markets. In the following report we will examine Emirates airlines financial statements for the period 2015-2016, in comparison with two of its competitors, Lufthansa and Qantas. In the report, different ratios will be analyzed, and an evaluation of the company’s financial state will be concluded. We will also evaluate Emirates’ capital structure, and the different types of stocks and bonds that they issue. Finally, we will independently comment on two news articles that demonstrate recent financial developments for Emirates. Ratio Analysis: The values used in the calculations associated with the ratio analysis are extracted from the 2016 consolidated financial statements. All the following numbers are mentioned in the form of million euros. Except the values related to the companies’ shares. When it comes to our industry, being the airline industry. Practically, being service companies, there are no actual sales or cost of goods sold. In the following calculations, Sales are the companies’ respective transport/passenger and freight/traffic revenues, and the cost of goods sold numbers were extracted from the consolidated financial statements.
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  • Summer '15
  • Financial Ratio, Dividend yield, Airbus A380, emirates airlines

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