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@trephena and @ehsan Can limitations be included in part 3 as well? Limitations like why im not using quick ratios or why i had difficulty finding ratios only relevant to airlines etc or why im using something different to elaborate a point about my airline? Should all these limitations be included in part two; limitations of information gathering or i can include limitations in my conclusions in part 3?
Can limitations be included in part 3 as well? Limitations like why im not using quick ratios or why i had difficulty finding ratios only relevant to airlines etc or why im using something different to elaborate a point about my airline? Should all these limitations be included in part two; limitations of information gathering or i can include limitations in my conclusions in part 3?
Oh. I understand. This is very helpful. Thank You. But can i ask one more annoying question? (sorry). So, even if i use the financials provided my Qantas. What if those financials aren’t available for the comparator? I leave that out then? for instance i figured that Qantas is using debt / ebitda instead of debt / equity but there is no sign of debt / ebitda by VAH. i don’t talk about this from VAH’s point of view?
Sorry for not being clear. I was quoting @ehsan as he was discussing ratios with another student. I wasn’t able to do that correctly. Anyways, my question was that i wanted to know how to find information on gearing ratio (specifically debt to equity ratio) for Qantas and Virgin Australia. Debt to equity ratio has been calculated in Qantas’s annual report 2013 and 2014 however 2015 onward, they don’t mention it at all. In my appendices, i took out gearing ratio as total debt / total equity which is not how Qantas takes out in their annual report. They take it out on net debt and include some other complicated things including operating lease etc and do not discuss it. My mentor said that i should not calculate the debt to equity ratio the way i have done it but instead use the gearing ratio given in annual report. is that the right approach? also, even if i use the gearing ratio given in annual report, they stop providing that from 2015 annual report onward. how do i analyse the debt to equity ratio? should i separately look for information on debt and equity and combine that together? i am not able to find accurate information on debt to equity ratio. I have searched on google but all i find is other people’s financial analysis who have either calculated debt to equity ratio in different ways or i find articles quoting the debt to equity the way they find in annual reports or don’t mention it.
I did however find some general information on Qantas’s capital structure .Its all general information. But i need reasons to analyse my ups and downs in the ratios. Now I am confused for all the ratios, whether to use ratios given in annual reports (which are usually just stated and no calculations are given) or i should calculate my own ratios. And how to reason them. So i need your advice on this. My mentor also said to just make assumptions of why the ratios might be the way they are. Is that a correct approach?
Also, i noticed that alot of financial analysis contradict between annual reports. For instance in 2014’s annual report, Qantas talks about net debt/equity ratio. In the next year’s annual report, they ditch that ratio and add up net debt/ebitda instead. Alot of times i found the information was not steady and i had to not talk about that ratio because they completely remove that from the following year. Please help.@ehsanshah said:
Hmm, similar,1) Revenue analysis with Yield ASK and Load factor
2) Operating profit
3) Net profit
4) Gearing
@ehsan i wanted to know how you dealt with finding information on gearing ratio (specifically debt to equity ratio). Information on debt to equity is available for Qantas in annual reports 2013 and 2014 however 2015 onward, they don’t mention gearing ratio at all. In my appendices, i took out gearing ratio as total debt / total equity which is not how Qantas takes out. They take it out on net debt and include some other complicated things. My mentor said that i should not calculate the debt to equity ratio the way i have done it but instead use the gearing ratio given in annual report. is that a right approach? also, even if i use the gearing ratio given in annual report, they stop providing that from 2015 annual report onward. how do i analyse the debt to equity ratio? should i separately look for information on debt and equity and combine that together? i am not able to find accurate information on debt to equity ratio.
Please help.@trephena i will be using gearing ratios and explain all that you said however, i wasn’t able to find enough information to give details on current ratio as mostly, the airline is talking about their cash flows and operating cash flows under the liquidity heading so i was wondering if i could add along the operating cash flow ratio with current ratio to give details.
@trephena oh i get it now. so that makes things really easy then. which means that i can have a lot of different pages from one annual report that i can cite in my RR but i will only refer it once in the list. phew. Thank you. i wasn’t able to understand it clearly before.
Is it okay if i reference the annual reports or financial reports as a “document from website” from the MS Word citing system rather than as a website? Because it is a document and this seems right to me. I need your advice on this. Also i am referencing like this:
Qantas Annual Report. (2014). Investor Centre. [Online]. Available at: https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/annual-reports/2014AnnualReport.pdf
(Accessed: 3 January 2017).
I am not sure if “Investor Centre” should be added as italic in the “name/title of webpage” area. What should be the name of webpage?@trephena said:
Yes that’s fine.If you are citing from more than one page from the same source within your report that you insert the different page numbers in the text but then omit them in the list (as you should only list the same document once). If only using the document once in the text it is fine to have the page number either in the text or list or in both.
@trephena what does this mean? if i am citing from more than one page from the same document, won’t i be using a,b,c for it? like (XYZ Annual report, 2014a) and then b and c every time i choose information from a different page of the same annual report? How can i only reference it in the list only once? won’t i reference every time considering the a,b,c added? like
Virgin Australia Annual Report (2014a) name of webpage, url etc—so on at one time and the next time i’ll reference it as
Virgin Australia Annual Report (2014b)____?
please guide. Thanks.Thank you for your response @Ehsan.
i have another question for you and @trephena
i am not getting a hang of how to reference annual reports or any other pdf source i get from the company’s investor centre.
Is it okay if i reference the annual reports or financial reports as a “document from website”? from the MS Word citing system rather than a website? Because it is a document and this seems right to me. I need your advice on this. Also i am referencing like this:
Qantas Annual Report. (2014). Investor Centre. [Online]. Available at: https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/annual-reports/2014AnnualReport.pdf
(Accessed: 3 January 2017).
I am not sure if “Investor Centre” should be added as italic in the “name/title of webpage” area. What should be the name of webpage?
Also if i am citing (Qantas Ceo Address, 2014) in the RR should i reference this as
Qantas Ceo Address. (2014). Qantas Annual Report. p.3 [Online]. Available at—–
or i would have to write investor centre instead of qantas annual report here as well. basically i have a confusion regarding what the name of webpage would be.Hey again,
i’d appreciate if someone reply my above asked question, thank you.
I also have some other questions:
1. is it necessary to do operating statistics analysis of the comparator as well? like if i do a detailed revenue analysis of my main company including ask, rpk etc, and see the company’s progress over the years, do i need to do the same for my comparator? do i have to do as detailed analysis of my findings as that of my comparator?
2. when i emailed obu, they told me we are basically doing “comparator analysis” instead of competitor analysis. so can i mention the word “comparator” in my research when i’m making a reference to my other company?is EPS of QAN and VAH even discuss worthy under investor ratio even if VAH is at loss for the last three years?
@ehsan MS does create a full reference list according to the citation done but is that okay to use? I mean all the referencing guidance in the Info Pack, the MS reference list is not exactly made according to that but its okay to use it? Also, this reference list is made right under the RR and not separately when we have been advised to make a separate word document for it. What is your opinion on that?
Also, I have no idea how to differentiate between the citation of the media releases, CEO Addresses, director reports, sustainability reports, annual reports of a company since All belong to one company and it is the corporate author of them all. what do i do? differentiate by naming the report? like (XYZ Annual report, 2014) and (XYZ CEO Address, 2015) ?
Thank you so much @ehsan and @trephena for your response. I understand what you mean Trephena and that’s why i asked for clarity purposes. Yes i understand that Quick Ratio and all the Debtor and Inventory Days should be neglected. Thanks to this forum.
My next question is again to ask you more clearly which is :
so for Load Factors and Yield and all these statistics, i should talk about them under their own label/heading or i should discuss them under Sales growth and Profit?Hi @ehsan i wanted to ask you about what you have explained in the para above.
1. I couldn’t for instance, find yield in QAN’s annual report or RPK in VAH’s Annual report. The common statistics between QAN and VAH are load factor, ASK and passengers carried. Is it ok to use only the common statistics given or i should search for the other ones elsewhere?
2. I have to use these operational statistics in my financial analysis right? Just curious because they don’t exactly come under financial ratios.
3. From what i read, ROCE is not a good ratio to add?