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... Part A evaluate easyJet’s financial performance in 2002, which base on the annual report and account. Part B justifies the two-investment option, which EasyJet may be taken.
PART A:
easyJet, the European’s largest low cost airline, performed quite well in 2002, just as easyJet’s chief executive, Ray Webster, stated that “our business has performed well through a busy summer season and, despite the current economic uncertainty, we are confident in our prospects for the future .”
We can proof Ray Webster’s statement by looking at following statement:
For the year ended 30 September 2002 easyJet plc make a profit before tax of 71. ... After the events of 11 September, many traditional carriages has suffered nearly six month’s low volume of activities, but easyJet has been in a position to benefit from the opportunities arising from this industry realignment. ...
By Calculate the operating profit, EasyJet have the operating profit margin 12%(Note 1). ... If you already been the customer of the easyjet, you will found their differences with some traditional airlines. ... easyJet also has no inflight meal, since all flight is short haul, no one will suffer from acute hunger on an easyJet flight! Nevertheless, easyJet has subcontracted catering services on its flights, customers can buy an in flight meal and drinks they wish, which contribute more profit to the company. ... 48% (Note 2), which means that every 1-pound of long-term capital in EasyJet produced 8. ... Since BA operates in quite a different way to EasyJet, it is not fair to just directly compare these figures. However, from these figures we can definitely conclude that EasyJet was more profitable and invest in EasyJet will gain more return.
There is also no long term and short term risk exist in EasyJet, the current ratio of 2:1 in 2002 (Note 4) reveals that the current asset cover the current liabilities by 2 times, which slightly down from a 2. ...
From above interpreter and the ratio I calculated, we could conclude that easyJet is performance well in 2002, also have a bright future. ... In the EasyJet’s accounting report, there is no such expansion, so it is limited the analysis the easyJet’s performance properly. ...
PART B:
In order to take advantage of market opportunities emerging in Europe and to take market share from many flag carrier airlines, easyJet would like to expand their current fleet of 30 aircraft to 150.
Approximate Word count = 1900
Approximate Pages = 7.6
(250 words per page double spaced)
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