May 12, 2017 at 3:42 pm
Is there any limit for the number of abbreviations that can be used. i used the following abbreviations. Emirates airlines – EK, cathay Pacific – CX, return on assets – ROA, operating profit magin – OPM, fixed asset turnover – FA
net debt/equity – ND/E and currency billion as bn and currency million as m.May 12, 2017 at 7:58 pm
I need your guidance again…
I read @ehsan‘s post in this forum where he advised to have at least 4 ratios from:
From those above, I have eliminated Liquidity (Current Ratio ) as both companies had a ratio above 1 for all the years except one. However, in the investor ratio – EPS – I do not see much to write, in fact it is worse than the Current Ratio where at least I had a couple of points to explain but for EPS, I can’t think of any and overall its a healthy EPS for both – above 1. Hence, is it okay If I eliminate this and bring back Current Ratio, or perhaps eliminate both and include a brief cash-flow summary?
Other than ratios, I have explained RASM, Yield and ASM and will include Load factor which basically relates to the effects of RASM and ASM….I need some tips for Aircraft Utilization KPI, because I have inlcuded it but I cant really tell the reason for its trend….Air Canada’s Aicraft utilization is gradually rising and vice versa for WestJet….but I can not really explain why…yet Air Canada has plenty more fleets than WestJet….both are having new deliveries…both have increased destinations and routes….so why are the trends opposite to each other?! I would like to hear from you on this as well..
Last question, If I have explained about the Net Profit but I have written so much about it…like almost every big expenditure trend causes mostly the main ones such as – Low Fuel expenses due to low fuel prices, High Salaries due to High Pensions and benefits offered, Competitors high maintenance expenditure growth due to old fleets – giving it a gain, Air Canada’s newly delivered fleets – more efficient, and depreciation expenses..as well as FX losses in non operating expenditures that were very high. After having written all that, its almost 646 words on that! I feel its a lot…Should I eliminate some explanations, but wouldn’t this be a risk for me?, By the way, I have already eliminated the unnecessary words of why I chose this topic and company 🙂
Thank you for your generous support!! 🙂May 12, 2017 at 8:01 pm
@amal3008 – Yes in that it can drive the marker crazy! Some abbreviations are fairly standard e.g. ROCE and EPS but ND/E is not of them. Even if you provide an abbreviation list it often means the reader has to break off, refer to the list and then re-read the passage (and this can be very annoying as well as frustrating).
My marker friend says if this happens to her repeatedly she fails for communication as the reading flow is disrupted and her understanding compromised. Her advice is to stick to conventional abbreviations (EK and CX would be regarded in this category provided you use the full version at least once at the beginning), and if in doubt about whether to use a particular abbreviation or not is –
don’t!May 13, 2017 at 4:48 am
May 13, 2017 at 8:51 pm
Do i need to inform Oxford Brooks about the company and the competitor i have selected. Is it a requirement?
If yes is it the right time to inform them.
And do i need to register with Oxford Brooks as well or No!!!
Thank you!!!!!!May 14, 2017 at 1:21 am
@Jahnvi – I would include both current ratio and EPS if you can squeeze in the words. Perhaps you don’t have to say much about the current ratio a graph and that it is above 1. EPS is related to profit of course. If you prefer use dividends per share which may reflect both profit and retained earnings and subsequent future investment strategies (retained earnings for business expansion plans or new aircraft)
Regarding aircraft utilization you have practicality answered your own question. Aircraft and airlines only make money when the aircraft are in the air. Newer aircraft (like New cars) need less maintenance but have higher depreciation, whereas older aircraft have parts that need replacing, and more regular checks (many of these are mandatory and linked to aircraft age and flight cycles, that is the number of take-offs and landings, as well as number of flying hours) I suspect WestJet is buying and using old jets that have higher scheduled maintenance and need to spend more time on the ground undergoing engineering checks (some of which may be unplanned -as just like older cars they become less reliable)May 15, 2017 at 7:17 am
Thank you for your detailed answer.
Unfortunaterly, Air Canada does not give out dividends so I would not be able to use dividend per share. I will include a brief summary of the EPS and of aircraft utilization or just one of the two due to word limit 🙁
Thank you for making me understand about the aircraft utilization, it makes more sense now 🙂May 15, 2017 at 8:23 am
Worth a line then: – Air Canada is not declaring dividends right now preferring to retain earnings to maintain a higher current asset balance having recently heavily invested in a new fleet. This should secure future earnings and dividends going forward.May 15, 2017 at 8:33 am
That’s a nice point, I will definitely make use of it 🙂
Thank you @trephena 🙂
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