Financial Analysis of Air India
A REPORT ON FINANCIAL ANALYSIS OF AIR INDIA
COURSE: MBA in Logistics and Supply Chain Management
SUBJECT: Financial Analysis for Managers
ID No: EAC0911598
12/28/2011
Christy Christopher Devassy
TABLE OF CONTENT 01 I. Executive Summary……………………………………… 02 II. Company Profile…………………………………………… 03 III. Financial Ratio’s……………………………………… ……04 a) Profitability Ratio……………………………………..04 b) Efficiency Ratio…………………………………………08 c) Liquidity Ratio………………………………………….06 d) Gearing Ratio………………………………………09
IV. Horizontal Analysis……………………………………….09 V. Vertical Analysis…………………………………………...10 VI. Comparison with Jet Airways………………………..11 VII. SWOT analysis……………………………………………….12 VIII. Conclusion……………………………………………………14 IX. Recommendation and suggestions…………… ….15 X. Reference………………………………………………………16 XI. Appendix……………………………………………………….17
(NOTE: All calculations are done in the appendix)
Executive Summary
The purpose of this study is to provide readers with comprehensive analysis of the financial reports of Air India from the year 2007-2010. The financial analysis of Air India highlights financial health of the airline, its strength and weakness and its ability to create value to its shareholders.
The study introduces a brief overview of the company and its area of operation and activities in the first section. Further, the profitability ratio, efficiency ratio and gearing ratio is calculated over the study period to analyze capital structure, scope of international operations, recent stock performance and dividend policies.
In the next section, the horizontal analysis of the financial statements is carried out taking 2007 as base year for each 2008, 2009 and 2010 to understand the variation of individual balance sheet items over the study period.
The financial statement of the Air India was compared with Jet airways to examine how efficiently Air India managed its domestic and international operations.
COURSE: MBA in Logistics and Supply Chain Management
SUBJECT: Financial Analysis for Managers
ID No: EAC0911598
12/28/2011
Christy Christopher Devassy
TABLE OF CONTENT 01 I. Executive Summary……………………………………… 02 II. Company Profile…………………………………………… 03 III. Financial Ratio’s……………………………………… ……04 a) Profitability Ratio……………………………………..04 b) Efficiency Ratio…………………………………………08 c) Liquidity Ratio………………………………………….06 d) Gearing Ratio………………………………………09
IV. Horizontal Analysis……………………………………….09 V. Vertical Analysis…………………………………………...10 VI. Comparison with Jet Airways………………………..11 VII. SWOT analysis……………………………………………….12 VIII. Conclusion……………………………………………………14 IX. Recommendation and suggestions…………… ….15 X. Reference………………………………………………………16 XI. Appendix……………………………………………………….17
(NOTE: All calculations are done in the appendix)
Executive Summary
The purpose of this study is to provide readers with comprehensive analysis of the financial reports of Air India from the year 2007-2010. The financial analysis of Air India highlights financial health of the airline, its strength and weakness and its ability to create value to its shareholders.
The study introduces a brief overview of the company and its area of operation and activities in the first section. Further, the profitability ratio, efficiency ratio and gearing ratio is calculated over the study period to analyze capital structure, scope of international operations, recent stock performance and dividend policies.
In the next section, the horizontal analysis of the financial statements is carried out taking 2007 as base year for each 2008, 2009 and 2010 to understand the variation of individual balance sheet items over the study period.
The financial statement of the Air India was compared with Jet airways to examine how efficiently Air India managed its domestic and international operations.