FINANCIAL THEORY

Finance Theory

TABLE OF CONTENTS

Part A - Project Objectives and Overall Research Approach5

1. INTRODUCTION5

1.1 Topic chosen5

1.2 Reason for Choosing Topic5

1.3 Aims and Objective of the report7

PART 2 - INFORMATION GATHERING AND ACCOUNTING/BUSINESS TECHNIQUES9

DATA MINING:9

2.1Sources of Information9

2.2 Methods Used in Information Gathering:10

PART 3 - RESULT, ANALYSIS, CONCLUSIONS AND RECOMMENDATION11

3.1. BUSINESS ANALYSIS11

SWOT Analysis11

Strengths11

Weaknesses12

Threats12

3.2 BUSINESS PERFORMANCE14

Current Business Performance14

Industry Performance14

World price of crude oil15

Current Performance15

Industry Analysis15

Industry Outlook16

Ryan Air Business Model17

3.3. FINANCIAL PERFORMANCE17

Key Financials17

Glimpse of Financial Highlights18

COMPARATIVE ANALYSIS21

Competencies categorizing the Aviation Industry22

Core Competencies of Easy Jet22

Key Financials22

Financial Ratio Analysis23

a)Operating And Pre-Tax Results23

b)Return on capital/investment and shareholders' funds Ryan air24

Solvency25

Gearing Ratio26

Liquidity26

c)Market capitalization and EPS27

SLS (Learning Skill)28

b) Learning Skill (Financial Ratios - a technique to learn the Financial Strength)29

Liquidity ratios30

The Efficiency Ratios (Gauging Returns)31

Profitability ratios Tool32

The leverage ratios33

Beyond the numbers33

CONCLUSION33

Recommendations………………………………………………...…………………………..34

Appendix ……………………………………………………………….………………… …35

Abstract

The paper analyzes the business and financial performance of an organization over the period of 3 years. The paper highlights and identifies the importance of financial and how it helps in gauging the performance standards of an organization. On the other hand businesses compare their results with other companies working in the same industry so as to measure their performance standards and whenever they feel that the performance is not according to the industry standards then they take certain steps to boost up the performance so as to compete in the market. The reason for choosing this project area is to analyze that how businesses work and maintain their integrity in the market along with the competitors. The paper identifies some key concepts related to the fact that how companies manage in severe competition and how they are able to earn the financial competencies. The research paper analyzes business and financial strategies and then clarifies the future picture for the company.

Part A - Project Objectives and Overall Research Approach

1. INTRODUCTION

1.1 Topic chosen

The paper signifies the business and financial performance of Ryan Airline. It does not only signify the company's financial position but it also highlights the competitive advantage which the airline has on other operating airlines in the same tier. The paper also explains comparative analysis from other airlines so as to judge where the company is standing in real terms. The financial results of Ryan air are analyzed for the last two years and compared with the other two companies. The paper also discusses the blue ocean strategy along with the strengths, weaknesses, opportunities and threats of Ryan air and identifies the financial strategies that Ryan air is implementing.

1.2 Reason for Choosing Topic

The myth behind choosing this topic that is financial analysis of Ryanair is because being the student of finance I would like to study the financial standing of a huge industry as to broaden my concepts and to know the practical implementation of what I have studied in my courses so far. On the other hand, one of the major points of interest in this topic is to identify the financial strategies of airline industry after recession and how they implements these strategies in order to boost up the companies performance ...