Analysis of Financial Statment
OXFORD BROOKS UNIVERSITY
Research AND ANALYSIS Project
ThE evaluation of Business and financial performance of british airway PLC : TOPIC. NO: 8
(From 1st APRIL 2007 to 31st MARCH 2009)
Word count - Project:5507 words
Word count - SLS:1784 words
By
LAMIN FATTY
ACCA Registration No 1074474
Email: L4lamin@yahoo.co.uk
TABLE OF CONTENT
Page 1.0 Introduction 1
1.1 Topic Selection 1
1.2 History of British Airways 1
1.3 Aims and Objectives 2
1.4 Limitation of Ratio Analysis 3
2.0 Research Method 3
2.1 Introduction 3
2.2.0 Source of Information 4
2.2.1 Primary Source 4
2.2.2 Secondary Source 4
2.3 Type of Information used in the Analysis 5
2.4 Limitation of Information Gathering 5
2.5 Difficulties Encountered 6
3.0 Analysis of the Data 6
3.1 Purpose of the Analysis 6
3.2 Growth 7
3.3 Sale growth 8
3.4 Profitability Analysis 9
3.4.1 Operating Profit Margin 9
3.4.2 Net Profit Margin 10
3.4.3 Return on Capital Employed 11
3.5 Liquidity 12
3.5.1 Current Ratio 12
3.5.2 Quick Ratio/Acid Test Ratio 13
3.6 Working Capital/Efficiency Ratios 14
3.6.1 Receivable Turnover Ratio 14
3.6.2 Asset Turnover Ratio 15
3.7 Gearing 16
3.7.1 Net debt/Total capital Ratio 16
3.8 Shareholders Ratio 17
3.8.1 Interest Cover 17
3.8.2 Earning per Share 18
4.0 Presentation of Findings 18
5.0 Conclusion 20
6.0 Recommendation 21
7.0 Reference 22
8.0 Appendix 23
Dedication
All praise is to the almighty who gives us the wisdom and strength to carry out such a very difficult task.
Special thanks to my wife Sally Demba and my son Muhammad Fatty for allowing me to concentrate on this work at the expense of their time and attention. I cannot
Research AND ANALYSIS Project
ThE evaluation of Business and financial performance of british airway PLC : TOPIC. NO: 8
(From 1st APRIL 2007 to 31st MARCH 2009)
Word count - Project:5507 words
Word count - SLS:1784 words
By
LAMIN FATTY
ACCA Registration No 1074474
Email: L4lamin@yahoo.co.uk
TABLE OF CONTENT
Page 1.0 Introduction 1
1.1 Topic Selection 1
1.2 History of British Airways 1
1.3 Aims and Objectives 2
1.4 Limitation of Ratio Analysis 3
2.0 Research Method 3
2.1 Introduction 3
2.2.0 Source of Information 4
2.2.1 Primary Source 4
2.2.2 Secondary Source 4
2.3 Type of Information used in the Analysis 5
2.4 Limitation of Information Gathering 5
2.5 Difficulties Encountered 6
3.0 Analysis of the Data 6
3.1 Purpose of the Analysis 6
3.2 Growth 7
3.3 Sale growth 8
3.4 Profitability Analysis 9
3.4.1 Operating Profit Margin 9
3.4.2 Net Profit Margin 10
3.4.3 Return on Capital Employed 11
3.5 Liquidity 12
3.5.1 Current Ratio 12
3.5.2 Quick Ratio/Acid Test Ratio 13
3.6 Working Capital/Efficiency Ratios 14
3.6.1 Receivable Turnover Ratio 14
3.6.2 Asset Turnover Ratio 15
3.7 Gearing 16
3.7.1 Net debt/Total capital Ratio 16
3.8 Shareholders Ratio 17
3.8.1 Interest Cover 17
3.8.2 Earning per Share 18
4.0 Presentation of Findings 18
5.0 Conclusion 20
6.0 Recommendation 21
7.0 Reference 22
8.0 Appendix 23
Dedication
All praise is to the almighty who gives us the wisdom and strength to carry out such a very difficult task.
Special thanks to my wife Sally Demba and my son Muhammad Fatty for allowing me to concentrate on this work at the expense of their time and attention. I cannot