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    Research & Analysis: Oxford Brookes University

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    Syed Irfan
    This document is a research report analyzing the business and financial performance of Emirates Airlines over a three-year period. It includes ratios, SWOT, PEST, and competitor analyses. Key findings are that revenue grew 21.8% but higher financing costs may be an issue. Recommendations include reducing costs, hedging currency risk, maintaining investor confidence, and ensuring political issues don't impact performance.

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    Research & Analysis: Oxford Brookes University

    Uploaded by

    Syed Irfan
    32 views19 pages
    This document is a research report analyzing the business and financial performance of Emirates Airlines over a three-year period. It includes ratios, SWOT, PEST, and competitor analyses. Key findings are that revenue grew 21.8% but higher financing costs may be an issue. Recommendations include reducing costs, hedging currency risk, maintaining investor confidence, and ensuring political issues don't impact performance.

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    This document is a research report analyzing the business and financial performance of Emirates Airlines over a three-year period. It includes ratios, SWOT, PEST, and competitor analyses. Key findings are that revenue grew 21.8% but higher financing costs may be an issue. Recommendations include reducing costs, hedging currency risk, maintaining investor confidence, and ensuring political issues don't impact performance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views19 pages

    Research & Analysis: Oxford Brookes University

    Uploaded by

    Syed Irfan
    This document is a research report analyzing the business and financial performance of Emirates Airlines over a three-year period. It includes ratios, SWOT, PEST, and competitor analyses. Key findings are that revenue grew 21.8% but higher financing costs may be an issue. Recommendations include reducing costs, hedging currency risk, maintaining investor confidence, and ensuring political issues don't impact performance.

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    Research & Analysis

    Report
    Oxford Brookes University
    Emirates Airline|
    An Analysis of Financial and Business Performance Over Period of
    Three Years|

    Shairaz Naseeb| Registration No. 2261882


    Topic Selection, Entity & Other
    Details
    • Selected Topic is ‘An Analysis &
    Evaluation of the Business and Financial
    Performance of Emirates Over a Three
    Years Period’.
    • Selected Company is Emirates Airlines.
    • Financial and Business analysis
    Performed.
    • New Skills & Learning developed during
    RAP.
    Research Tool Used
    • Financial Ratio’s
    • SWOT Analysis
    • PEST Analysis
    Research Objectives
    • Know how successful it has been in generating earning and
    covering/ controlling costs in relevant period by analyzing
    profitability of the company.
    • Analyzing short term liquidity of the company during the
    financial crunch.
    • Analyzing company activities impact on its working capital
    management.
    • Understanding the impact of its operations on the investor’s
    confidence.
    • Obtain an understanding of the impact of external pressure on
    the internal operations and policies.
    • Examine the competitive pressure being faced by the
    company.
    Research Questions
    • What sources of information will I access to gain information?
    • What model will be used in order to achieve objective of my
    RAP?
    • Which ratio’s will be calculated and interpreted for the
    financial analysis?
    • What models should be used to target my objective for
    business analysis?
    • What ethical problem I might face during my research?
    • What is the company’s performance in the last three years? Is
    the performance comparable to its competitors?
    • What are the technological, economic, social and political
    factors which are being confronted by Emirates Airline?
    Moreover, what is the understanding which the company has
    developed for these factors and how well they can shape out
    their strategies considering these factors?
    Research Approach
    • Systematic Way
    • Ratios, SWOT and PEST Analysis
    • Harvard Referencing
    Ratio Analysis
    • Profitability Ratio’s
    • Liquidity Ratio’s
    • Investment Ratio’s
    • Leverage Ratio’s
    Profitability Analysis
    • Turnover Growth
    • Operating Profit Margin
    • Net Profit Margin
    • ROA
    • ROE
    • ROCE
    Analysis Table
    Description 2013 2014 2015
    Turnover 9% 13% 7%
    Growth
    Operating 3.99% 5.28% 6.79%
    Profit
    Net Profit 3.21% 4.03% 5.25%
    ROA 2.41% 3.20% 4.09%
    ROE 9.91% 12.78% 16.10%
    ROCE 5.31% 6.71% 8.09%
    Analysis Graph
    PROFITABILITY ANALYSIS
    2013 2014 2015
    18.00%

    16.00%

    14.00%

    12.00%

    10.00%

    8.00%

    6.00%

    4.00%

    2.00%

    0.00%
    Operatin Profit Net Profit ROA ROE
    Competitor Analysis
    Turnover Analysis - Net Profit Margin
    %age 2015
    30%
    27% 2014
    20% 24%
    19%
    10% 13% 2013
    9% 7%
    0%
    0.00% 5.00% 10.00%15.00%20.00%25.00%
    FY 2013 FY 2014 FY 2015
    Etihad Airways Emirates Airline
    Emirates Airline Etihad Airways

    40% Operating Profit Margin


    30%

    20%

    10%

    0%
    2013 2014 2015
    Emirates Airline Etihad Airways
    Liquidity/ Investment/ Leverage
    Ratio’s
    • Current Ratio
    • Quick Ratio
    • Dividend Cover
    • Interest Cover
    • Operating Gearing Ratio
    Analysis Table
    Description 2013 2014 2015
    Current Ratio 1.12 0.84 0.80
    Quick Ratio 1.07 0.79 0.75
    Dividend 3.09 3.94 2.10
    Cover
    Interest 3.61 3.80 4.17
    Cover
    Operating 175.63% 171.59% 171.8%
    Gearing
    Analysis Graph
    4.50

    4.00

    3.50

    3.00

    2.50

    2.00

    1.50

    1.00

    0.50

    0.00
    Current Ratio Quick Ratio Dividend Cover Interest Cover
    2013 2014 2015
    Analysis Graph
    Operating Gearing Ratio
    176.00%

    175.00%

    174.00%

    173.00%

    172.00%

    171.00%

    170.00%

    169.00%
    Operational Gearing Ratio
    2013 2014 2015
    SWOT Analysis
    STRENGTHS WEAKNESS
     Strong Customers Bonding • High Ticket Price
     Echo Friendly • No Focus on Middle & Lower
     Brand Image Class
     Government owned Entity • Unfavorable Labor Policies
     Largest Airline
     More Stations
     Timely Flights

    OPPORTUNTIES THREATS
    • Different Partners • Jet Fuel Price
    • Resources Availability • Competition
    • Government Support • Volatile market
    • Can Expands operations in • Unexpected flight delays
    other countries
    • Reduce ticket price
    PEST Analysis
    Political Analysis Economic Analysis
    • Government owned • Higher inflation
    company • Exchange rates fluctuations
    • Effect of Govt. polices
    • Tax and duties

    Social Analysis Technological Analysis


    • Customers • Quality control
    • Higher class Attraction • Improved infrastructure
    • Latest Software's
    Conclusion
    • Emirates Airline is a Large Reputable Organization.
    • Have Credibility.
    • Revenue grew by 21.8%.
    • Government Policies have direct impact on Company.
    • Higher funds needed to improve technology & Fleet
    size.
    • Financial issue can face because of High Finance Cost
    Recommendations
    • Try to reduce operating cost through better management.
    • Hedge against currency risk.
    • Maintain investors’ confidence by stabilizing dividend payout ratio for
    long term stability of the company.
    • Manage their lease arrangement and borrowings to reduce finance cost
    (major outflow).
    • Ensure that political issues are not effecting company performance.
    • Keep satisfied their key employees by revising their labor policies.
    • For marketing and advertisements, company should hire brand
    ambassadors such as famous personalities like sports players.
    • Maintain their existing structure instead of focusing on continues
    development to avoid any down fall of economy effects.
    • Ensure Revenue Growth through different Strategies such as gifts
    vouchers.
    • Affordable ticket pricing rates are definitely demanded for middle class
    population.

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