1. Introduction Belobaba (2009) explains that the Aviation Industry has played an integral role in creating a global economy with providing its service to every country in the world. However, the Events of 11 September 2001, the outbreak of the deadly virus SARS, the increased oil prices and the Recession made it difficult for the businesses in the airline Industry to stay successful (Los Angeles Times, 2011). Additionally with increasing competition in this industry, managing operating costs and developing productivity have become top priority for management (Belobaba, 2009). Effectively, it is crucial to analyse the financial prospective of the business to maintain sustainability and profit makings. 1.1 Aims and Objective The Author decided to chose Ryanair and Easyjet as representative companies of the Aviation Industry and use primarily their Annual Reports to obtain relevant financial information for each of the chosen companies for the analysis of their financial situation for a period of 5 years – from 2007 to 2011. This work contains the following financial ratios to critically examine the performance of the two companies: i. Profitability Ratios ii. Liquidity Ratios iii. Gearing Ratios iv. Investment Ratios 1.2 Easyjet and Ryanair See Appendix for both Airlines’ Profile. 2. Ratio Analysis Ratio Analysis is identified as one of the methods to analyse the performance of a certain business (Siddiqui, 2006). Analysing the profitability and efficiency of Ryanair and Easyjet is the purpose of the following section. 2.1 Profitability Ratios 2.1.1 Return on capital employed (ROCE) The Return on capital employed (ROCE) defines the amount of profit that will be gained from the shareholders’ investment (Peterson and Fa... ... middle of paper ... ...anair.com/doc/investor/2009/Annual_report_2009_web.pdf. Last accessed 1st January 2014. Ryanair. (2011). Annual Report 2010. Available: http://www.ryanair.com/doc/investor/2010/Annual_report_2010_web.pdf. Last accessed 1st January 2014. Ryanair. (2012). Annual Report 2011. Available: http://www.ryanair.com/doc/investor/2011/Annual_Report_2011_Final.pdf. Last accessed 1st January 2014. Siddiqui, A (2006). Managerial Economics And Financial Analysis. New Delhi: New Age International. p42. Weil, R. (2012). Financial Accounting: An Introduction to Concepts, Methods and Uses. 14th ed. Chicago: Cengage Learning. p215. Weil, R. (2012). Financial Accounting: An Introduction to Concepts, Methods and Uses. 14th ed. London: Cengage Learning. p84. Weygandt,J., Kimmel,P., Kieso, D. (2009). Managerial Accounting: Tools for Business Decision Making. London: John Wiley & Sons. p49.
role of economy in globalising the world. It is very important to apply Marx’s theory of globalised capitalism in order to understand how the economy can produce globalism. Globalisation is economically determined through the establishment of international organisations and companies which function multilaterally by members from all over the world. The most important ones are the World Trade Organisations, International Monetary Fund, and Corporations. This essay explores how the economy plays a
strong influence in commerce, finance, the arts, and entertainment throughout Brazil and Latin America. The SPMR was created in 1973, though São Paulo state had previously created administrative regional bodies in the late 1960s. The SPMR now comprises 39 municipalities, including the municipality
backed up by sound calculation and theories. Two of the most talked about and essential theories or concepts that are related to the market dynamics and that will be discussed at length in this assignment are Efficient Market Theory and Behavioural Finance. Efficient Market Theory suggests that in every financial market the flow of information is very efficient and this is reflected in the price of the share at which it is being traded. As we know that the price of the share floating in a market is
can be defined as the system of interaction among the countries of the world in order to develop the global economy. It also refers to the integration of economics and societies all over the world (http://hotbabefatchicks.hubpages.com/hub/Definition-of-Globalization). Globalization can be both advantageous and detrimental to developing countries. Some of its advantages are increased external finance, improved technology and political conformism. Disadvantages of globalization include death of small
artificially upholding inflated stock values. Davidstockmanscontracorner.com recently published a report that examines these issues based on more than 30 years of Bubble Finance policies at the U.S. Federal Reserve Bank and similar pie-in-the-sky analyses of the the Bubble Finance policies of other central banks worldwide. Ever-increasing global debt, bigger government and economic interconnectedness have pushed many governments to the brink of bankruptcy. For example, according to the report, Japan has lost
Introduction Financial globalization and integration of financial markets has become one of the most discussed topics in society. The reason of this is rapid changes that have occurred in the world economy over the past decade. The ongoing global economic crisis, which showed another face of financial globalization, forced to pay attention to this phenomenon. Indeed, despite the fact that this phenomenon is generally accepted in the science, there are still major differences in the definition of
for the formation was that the twenty countries make up 80% of the world’s trade. The advantages of G20 is that results in a much greater interdependence among traders globally however the obvious disadvantage is what I talked about earlier is that global organisations have too much power such as Starbucks were politics and laws don’t influence business by the way of not paying tax. Political globalisation has also led to the emergence of new powers my example of this is Brazil looking at (Bloomberg
When thinking about globalization, why should that not be our alternative? Globalization, sounds like it would bring unity and full participation from all countries during global crisis. Globalization may be the most powerful form of action that the government could perform. If all the countries did come together and formed an alliance, they can have all of the country’s best entrepreneurs, politicians, economist, engineers, and scientist come together to be able to innervate or invent products and
ACCOUNTING, FINANCE AND ECONOMICS AND THEIR INTERRELATIONSHIP TO FINANCIAL ECONOMIC THOUGHT Name : S Mallikarachchi Student’s Registration Number : Date : 2015/06/21 Table of Contents Page No. 1. Financial Economics 3 2. Interrelationship among Accounting, Finance and Economics 4 3. Contribution to Financial Economic Thought 5 4. Conclusion 7 1. Introduction The inter-relationship among the three subjects – Economics, Finance and Accounting
Global cities are cities with substantial economic power, controlling the concentration and accumulation of capital and global investments. Despite this, global cities are the sites of increasing disparities in occupation and income. This is as a result of large in-migration and growing income inequality together with capacity and resource constraints, and inadequate Government policies. Global cities are key command areas in the organization of the world economy, acting as a focus for trade flows
The global financial crisis hit banks’ regulation at its core. As significant portion of this crisis’ responsibility has been attributed to the lack of effective banking oversight, there has been immense pressure on the next Basel agreement to tackle such issues in order to avoid future crises, or at least decrease their severity. In essence, the Basel accords mainly intend to gauge the level of capital required to protect banks against risks related to their assets. As a result, the latest accord
individual nations in terms of economic development strategies undertaken by national governments. The term globalization refers to the integration of local and international economies into a globally unified political economic and cultural order, and is not a singular phenomenon, but a term to describe the forces that transform an economy into one characterized by the embracement of the freer movement of trade, investment, labor and capital. The drive for globalization has resulted in greater economic growth
restrictions.” That is the definition that used globally to define it. In this situation major economies strongly believe that free trade delivers economic health growth. Trump however was able to maneuver around and assure to reduce America’s huge trade deficits, which Trump says have cost the country millions of well-paying jobs. A g-20 meeting discussion was has occurred with some of the biggest economies as the IMF, world bank,Treasury Secretary Steven Mnuchin and Federal Reserve Chair Janet Yellen
Textile Industry Trends in the Global Economy I. Executive Summary The objective of this paper is to examine how the development of a textile industry contributes to economic growth in the global economy. Because textile manufacturing is a labor-intensive industry, developing countries are able to utilize their labor surplus to enter the market and begin the process of building an industrial economy. Emerging economies then look outward to develop an export strategy based on their comparative
declining; distance is shrinking due to new advance in transportation and telecommunications technology, material culture is starting to look similar the world over; national economies are merging into an interdependent, integrated global economic system (Hill). The word itself. “globalize”, appeared in the 1960s meaning to “make global in scope or application”. Can be traced from the Silk Road, route between China and the Mediterranean Sea, which promoted the exchange of ideas and knowledge, along with