Critically analyse an aviation organisation’s financial requirements.
You are an aviation analyst working for a major investment bank and you have been tasked to research a publicly-listed airline of your choice.
Your investment bank is considering investing in the airline industry and would like a report to be submitted in order to ascertain whether your specific airline is a good investment or not.
1. Utilizing ratio analysis, you need to calculate the relevant ratios for your airline in 2 ways:
a. Internally within your airline from the past 3 financial years
b. Externally by bench marking these ratios with airline(s) you identify as your key competitor(s)
For each ratio, you need to briefly explain its usefulness and critically analyse the ratios in terms of trends over time within your airline and in the external industry context. You should utilize a broad range of financial and economic ratios. You will provide a conclusion as to the viability of the airline in terms of investment potential.
NB: Please provide all workings for your ratios in the appendices
The report will be assessed on the following basis:
• Calculation of ratios (30%)
• Explanation of the usefulness of these ratios (10%)
• Critical analysis of the ratios from an internal and external perspective (40%)
• Use of referencing in the Harvard format, including a references list in the Harvard format (10%)
• Structure, word count, spelling and grammar (10%)