Ryanair Financial Ratio Analysis

A low turnover implies excess inventory, a high ratio shows good sales. High inventory levels are unhealthy because they represent an investment with a rate of return of zero. In the case of copper mining there is a unlikelihood of a high ratio for inventory turnover because as it’s mined it goes out the door. The industry average is 41.66day for inventory turnover, Newmont is a faster turnover at 21 Days and Freeport is slightly longer at 52days. In the case of this industry specifically the faster they are able to turn over inventory the more money the company is able to free up allowing for a better working capital for the

Nok Air has two major hubs located in Don Mueang international airport, which is a central domestic airport, and in Chiang Mai. A key competitive advantage that leads Nok Air to be the top budget domestic airline and to gain higher market share is using the product differentiation. Nok Air differentiates itself from other competitors in terms of routes and periods. The firm offers a variety of routes and periods to passengers to enjoy with Nok Air compared to other competitors in the market of low-cost airline. Expanding flying route is one of the firm’s strategies to serve more passengers.

Dupont Analysis enables us to answer this question. Kohl?s Corporation Dupont analysis is 12% consisting of 4% (profit margin) x 1.41 (total asset turnover) x 2.48 (financial leverage). Compared to J.C. Penney?s Dupont analysis of -39% consisting of -4% (profit margin) x 1.34 (total asset turnover) x 7.21 (financial leverage). Kohl?s Corporation is generating sales while maintaining a lower COGS as demonstrated by its higher profit margin, and turning over large amount of sales. Although J.C. Penney Corporation has a negative profit margin, the company is heavily using their financial leverage.

The ROE is often seen as the primary measure of a company’s performance as it measures the profitability of shareholder equity by measuring how much the shareholders earned for their investment in the company and this tells common shareholders to know how effectively their money is being employed. The higher the ratio percentage, the more efficient management is in utilizing its equity base and the better return is to investors. However, the higher ROE does not necessarily mean better financial performance of the company. But rather, the higher ROE can be the result of high financial leverage, but too high financial leverage is dangerous for a company 's

According to the BARRA risk analysis model, BUD`s value at risk (VaR) number is 1% for a monthly and 5% for a daily analysis. This number explains how risky a stock is comparing to the market index. Since both numbers are relatively small on a scale of 100, investing in BUD has a pretty low risk; however, it is riskier than investing in the market itself. As it was discussed before, the company`s beta of 1.14 is also a sign that it is more volatile than the market; yet, it is a pretty small difference. Moreover, Anheuser-Busch InBev is a large cap company with a 206 billion market cap.

Debt Ratio: The ratio is what percent of your monthly gross income is required for paying bills. The measure provides attentiveness to the leverage of the company, along with the possible risks the company faces in the relations of its debt leverage that American Airlines is carrying on its books. Thus, using the formula total debt over total asset gives the result for 2015 .88 and for 2014 .95. A debt ratio of more than 1 indicates that a company has more debt than assets. Also, a debt ratio of less than 1 indicates that a company has more assets than debt.

It also, makes the company look bad and not stable. Finance is losing money which is due to the fact that inventory is high and the cost to store them is on the company’s dime. A production leveling strategy is when there is a continuation of producing an amount equal to the average demand. One of the advantages to this strategy is that is results in a smooth level of operation. Month 1 2 3 4 5 6 Forecasted Demand 600 750 1000 850 750 700 Month 1-6 if added equals to 4,650.

When we compare Skechers’s ratio (0.443) to that of the Nike (0.721), we realize that it is much higher than Sketcher’s which might be that Nike is taking safe measures when it comes to financing themselves: which is through debt. But at the same time it is a very high and risky ratio. Equity Multiplier= Total Assets/ Total

The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. In the year 2012, KHB had a current ratio of 1.688 but it comes to decrease in 2013 to a 1.642. The ratio in the year 2014 was 1.670 indicating a slight increase. The competitor of KHB, the PMMB had a current ratio of 4.785, 4.012 and 3.622 from the year 2012 to 2014 respectively. A current ratio should be more than 2.0 as a higher current ratio indicates a more promising current debt payments.

Competitiveness Airports operate in a highly competitive environment and therefore encourage developments which make the airport sector more responsive to the needs of their passenger and airline customers. Competition in the airline sector has been a driver of innovation and cost reduction and has delivered major benefits for consumers in terms of increased choice and value. Effective competition between airports is clearly something to be encouraged for the same reasons. “Within the aviation industry, MRO, ground handling, catering, CRS and freight forwarding created economic profits, but these were much more than offset by economic losses by airlines and airports. Airlines were responsible for the large USD17 billion of economic losses globally.