PERFORMANCE OF EASY JET

Performance of Easy Jet

Executive Summary

In this study we try to explore the concept of the strategic management accounting for Easy Jet. The main focus of the research is on the financial performance of Easy Jet especially the financial ratios. The research also analyzes many aspects of financial performance of Easy Jet and tries to gauge its effect on the overall company's strategy. Finally the research describes the factors which are responsible for investors to invest and tries to describe the overall effect of financial ratios on Easy Jet's financial performance from 2006 to 2010.

Table of Contents

Executive Summary2

Introduction4

Context5

Overview5

Ratios7

Evaluation9

Profitability Ratios9

Liquidity Ratios9

Assets Management Ratios10

Debt Management10

Per Share or Investor Ratios11

Cash Flow per Share11

Conclusion11

Introduction

Easy Jet is engaged in the provision of a low-cost airline service with care and convenience on short-haul and medium-haul point-to-point routes principally within Europe. Co. operates low-fare scheduled passenger airline businesses. It provides high-frequency services on short-haul and medium-haul point-to-point routes within Europe from its 19 crew bases at Belfast, Berlin, Bristol, Edinburgh, Geneva, Glasgow, Liverpool, Luton, Stansted, Gatwick, Newcastle, Manchester, Lyon, Madrid, Basel, Milan Malpensa, Rome Fiumicino, Paris Orly and Paris Charles de Gaulle. Through its subsidiaries, Co. is also engaged in aircraft operator, trading and leasing. The strategic management accounting is uniquely qualified to design more rigorous cost-effective strategies take strategic decisions with minimal risk. Of the pillars underpinning; the financial and accounting management is precisely the latter that has gained in the last decade more role, to avoid legal interventionism commercial voluntarily, and stiffness accounting principles generally accepted in underpinning the first unleashing strategic creativity. This has been possible largely by the development of new information technologies and the desire to assess more accurately through the indicators of financial and non-financial, in a globalize environment in which we have come to be seen as keys to success and increased competitive management knowledge.

The skills required for each strategic activity are different, and measurable success factors are also the same individuals. Accounting strategic direction through strategic steering, the decisions most appropriate based on non-financial indicators, which have previously been configured in different strategic maps that display the different scenarios that can address and to optimize our resources in the knowledge society.

Context

This paper focuses on the financial status of Easy Jet for 5 years that are from 2006 to 2010. This study will describe the importance of choosing the right strategy. Internal and external analysis of Easy jet is made in order to maintain the status as the low cost jet airlines. It includes the model of the strategy in use. The strategic choice of Easy Jet makes the company a leader in the industry. The company has become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of Easy Jet shows the set of managerial decisions and actions that determine the long-run performance of a corporation (Abaster, 2009, pp. 14-16). It includes environmental scanning, strategy formulation, strategy implementation and evaluation and ...