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Thank you very much,
The thing is if i use restated figures it will change YOY fall in operating profits into increase.
With respect to Interest bearing debt in capital employed, does it has to include short term borrowings and an overdraft?
On your reply to Chandon, you said you compared 2016 to 2015 and 2015 to 2014, not like FY-14, FY-15 and FY-16?
Capital employed only includes long-term debt usually. I dont think u need to worry abt including short-term debt and overdrafts, unless the same debts are being used in the organisation for a long-time which is quite unlikely as in these situations banks will.then try to convert there debts into long-term loans/bonds or require repayment.
Obviously when comparing trends u usually compare previous years figures and analysis. Quite less often do u compare figures to those of 2 years back. So although its three year analysis like 14, 15 and 16 it will comparing 14 to 15 and 15 to 16 and also 14 to 13 to analyse the first year of analysis figures
One drawback of not using restated figures wud be that u r not comparing like with like. As you said in will turn into an increase wud mean that ure not comparing the figures that are according to the new IFRS and currently used practices of the company.
The latest year wud be incorporating the new ways of stating amts while the un-restated figures different@ehsan
Yes i have already used all of those.I think you can just try to focus on other categories of ratios. What matters is the variety of information available and how good is ur analysis on other ratios.
It wont be a good decision to change ur company at this point in time @chandan
And u have perfectly understandable reason of not being able to calculate investor ratios.
U can state this in ur sls actuallyIn relation to below.. I see many problems with Emirates… Is the time left sufficient for the analysis if I move over to another company or topic perhaps?
@ch305 said:
I can see there are many doing Emirates like me here but has anyone realized that Emirates is not listed and there will be issues in calculating the shareholder ratios?If you type Emirates share price on Google you will find the share listing details and everything but the ‘Emirates’ that is listed is basically the Emirates bank listed under the name ‘Emirates NBD PJSC’ and not the Emirates Airlines.
What do I do?!?!?! I just realized this..
No, I chose Qantas and Virgin Australia.
For Emirates – Singapore Airline is best rival based on available information !
@trephena, Thanks a lot for the reassurance. I was panicking about that.
@ehsan, Singapore Airlines’ consolidated statements available consist of Singapore Airline, Silk Air, Tiger Air and Scoot and the latter two are budget carriers. Won’t it skew my comparison with Emirates which is a premium carrier? Is there any possibility of getting the individual statements of Singapore Air only?Also, the revenue breakup of Emirates is based on operations such as passenger, cargo, sale of goods etc but the revenue breakup of Singapore Airlines is based on how much revenue was from which subsidiary
@ehsanshah said:
No, I chose Qantas and Virgin Australia.For Emirates – Singapore Airline is best rival based on available information !
Thank you. This is a big dilemma, both ways has some sense and some no sense.
@trephena, what is your say on this?“Can you please advise whether to use Restated figures from annual reports or use original ones? e.g. 2015 annual report consists 2014’s restated figures so when doing financial analysis is it better to use restated figures of year 2014 from 2015 annual report or use original figures from 2014 annual report?”
“The thing is if i use restated figures it will change YOY fall in operating profits into increase.”Period 32 Comment 8
In addition to weaknesses in some of your ratios, your business models could have been improved. You seemed to merge your SWOT into the PEST with the elements of the PEST being either Opportunities or Threats. Ideally you should use each business model independently. Also the weaknesses in the SWOT were largely dividend related, which was already covered in the ratio analysis section, consequently in your SWOT you should have introduced new material to your readers; this would have widened the scope of your analysis and improved its quality.
I seem to have done a similar thing where in addition to SWOT, in PESTEL below each factor whether it relates to political or any other factor i seem to have also mentioned opportunities/threats along with each factor. @trephena @ehsan do u guys think i shud remove those opportunities and threats considering the failure comment of someone above?
I used SWOT and PESTEL and they are best and easy models to use.
You need to segregate these models to gain marks and to avoid any circumstances that would lead to repetition of analyses and points.
Use PESTEL to analyse outer environment and SWOT for internal competences. These two models are not one and are distinct, and in fact they complement each other and provide an all rounding view.
Don’t mix models – don’t tell about opportunities/weakness etc.. in PESTEL. Keep them separate and you can combine them both in conclusion.
Regards,
EhsanShould I show the KPIs such as Load factor and yields separately in the financial analysis or should use them for explanation of changes in profitability/revenue?
@ch305 said:
Should I show the KPIs such as Load factor and yields separately in the financial analysis or should use them for explanation of changes in profitability/revenue?Explanation for changes in revenue/profit
Hey guys,
@trephena @Ehsan just finishing up my report with 2016 analysis and overall conclusions. Just wanted to clarify that PART THREE the report, conclusion and recommendations together are meant to be 4500 words am I correct?Additionally, I was trying to get a fluid layout for my report and wondered what is the best layout for this? I dont want my report to be confusing and its points should flow easily into the others such as decline in revenue from decline in load factor and increased competition etc. Currently, the layout is PESTLE (external), SWOT then company specific ratios and strategies.
M.O.S.T analysis is used as a part of conclusion, an overall look at how the airline is meeting its objectives and mission statements.
Any suggestions or tips are welcome. Thank you!For emirates, they experienced the threat of allegations from US carriers during the three years under analysis (march ’13 to march ’16). but in june ’16 the decision was in favour of emirates and hence it no longer becomes a threat. Should I include it as a threat ( since it was during analysis period) or i should just exclude??
Anyone using Singapore Airlines as competitor here against Emirates?
The financial statements available online of Singapore Airlines Group in the annual reports has consolidated financial statements consisting of Singapore Air, Silk Air, Scoot and Tiger Air.
Tiger Air and Scoot are budget airlines so will it affect comparison with a all-premium airline like Emirates? I am not able to find the individual financial statements of just Singapore Air..
@trephena could you please advise as wellAnyone have idea where to find industry average financial ratio? I want to make comparison how ryanair is doing among others..
@ch305 said:
In relation to below.. I see many problems with Emirates… Is the time left sufficient for the analysis if I move over to another company or topic perhaps?Still one month, it is possible if you have no other time consuming commitments.
I have 2 papers to give in June along with the project.. :/
So I think switching over wouldn’t be wise now..
So I have chosen Singapore Airlines but not sure if I should compare Singapore Airlines Group with Emirates or just the Singapore Airlines parent company..
Singapore Airlines Group consists of 4 airlines out of which two are low cost
Singapore Airlines parent company is all premium but doesn’t take into account cargo.. cargo revenue is reported under separate subsidiary SIA cargo
@ehsanshah said:
Still one month, it is possible if you have no other time consuming commitments.@trephena, I need your advice on this..
If I compare Emirates with Singapore Airlines Group results, the issue is that the group consists of two subsidiary which are low cost carriers so I fear that it’ll not be a like for like comparison
If I compare Emirates with results of only Singapore Air parent company’s results then I will be missing out on comparison of cargo revenue as Singapore Airlines’ freight operations are managed by a different subsidiary, ‘SIA Cargo’.
I thought of adding SIA Cargo’s results to the results of Singapore Air and then do the analysis but only the individual P&L of SIA Cargo is available and not the balance sheet..
What do I do???
@ch305 said:
I have 2 papers to give in June along with the project.. :/So I think switching over wouldn’t be wise now..
So I have chosen Singapore Airlines but not sure if I should compare Singapore Airlines Group with Emirates or just the Singapore Airlines parent company..
Singapore Airlines Group consists of 4 airlines out of which two are low cost
Singapore Airlines parent company is all premium but doesn’t take into account cargo.. cargo revenue is reported under separate subsidiary SIA cargo
I want to use Wizz Airline as my company which was established 2003 ,a recent one In Hungary.
I want to use Ryannair as its competitor airline.
Both are European Low Cost Carriers.
Wizz Air , is a private limited company but publishes its annual account. Can I use them for topic 8?
HI,
I am doing my RAP on T8 using American airlines and Delta airlines.Any tips regading my choice are welcome.I am having trouble finding the chairman and directors report for these companies. Trepena has suggested earlier reading them is useful so I am worried I’ll be at a disadvantage not having access to such reports.
I also want tips on referencing.For my first 650 words in my rap with introductions and the other headings I have not referenced anything.Now I realize this does not look good.Should I be worrying about this?Referencing seems like a complicated process as I am mosly relying on websites for collecting info and there is data that have no authors but the data is definitely correct and I’m not sure if its .Also,how strict are the word limits(e.g 1000 words for introductions,reasons for choosing…,research ques.,research objs…)…Do these limits need to be exact?
Thanks
Take a look on the investor relations section of their websites as (American filed accounts usually are just financial statements) and you may find them there.
They help with the SWOT.
Yes you need to reference well throughout. See the Open Tuition Ultimate Guide to referencing (all 3 parts) on our homepage http://www.opentuition.com/obu
It may seem complex but I have tried to simplify it. Quite simply if you don’t reference adequately you are likely to fail so you will be wasting GBP 250 in submitting !
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