Economical Recession — does this effect Ryanair directly. Taken from the Ryan Air website from
Profitability ratios The profitability ratios point to generally low profitability, with Ryanair seeing a steady growth, while EasyJet seems to be barely breaking even. The same is reflected in the gross profit margin, operating profit margin, and net profit margin.
There is also an improvement in the cash flow margin, from The cash flow margin assesses how efficiently the company converts its sales to liquid cash i.
Effectively, this ratio points to the same reality apparent in the liquidity ratios, to the effect that the company generates substantial levels of liquid assets from its operations. Unlike the net profit margin that includes transactions in which cash is not transferred e.
On the other hand, EasyJet also remains profitable but has struggled with falling profit margins over the past three years.
The companys ability to meet its cash needs from its operations also reduced as shown by the reduction in the cash flow margin from Despite the reduction, the rates remain acceptably high for both companies.
Leverage Ratios The capital structure ratios compare funds provided by equity owners and funds from creditors, including the determination of the risk to creditors due to the firms capital structure. It is important that both EasyJet and Ryanair ensure they maintain a robust capital structure, enough to take advantage of potentially lucrative opportunities that may present as a consequence of the growth in the industry EasyJet Plc.The business model Ryanair has is another intangible valuable asset because it minimizes the cost and maximizes revenue and also provide cheaper flights for customers by flying into secondary airports on the outskirts of the advertised destinations as well.
Summary Ryanair, one of the most famous low cost airlines, attracts attentions from people and researchers all over the world.
As the financial crisis and the European debt crisis have an obvious negative influence on the global economy, the aircraft industry .
On the other hand, Ryanair posted gross profits of million, million, and million, translating into million, million, and million in . Free Case Study Solution & Analysis | pfmlures.com 1.
What is your assessment of Ryanair’s launch strategy? Ryan brothers took account about various factors when he launched his company, the key choices from were: first, they chose the most lucrative route possible (at the moment one of the most lucrative routes for their competitors), and with a potential growth if they can attract.
The report is mainly a case study analysis based on Eleanor O’Higgins’ review of Ryanair conducted in However, other secondary research has been analysed and used to support the arguments put forward in this document.
Ryanair and Easyjet Financial Ratio Analysis Ryanair and Easyjet Financial Ratio Analysis Introduction This report outlines the analysis of two low-cost airlines performance in Europe, namely Easyjet PLC and Ryanair Hldgs during their financial year between and