Sia

FINANCIAL STATEMENT ANALYSIS In order to obtain a comprehensive analysis on SIAs financial didactics analysis , we compared SIAs 5 financial year ending(FYE) results with the industrys total and 2 of its main competitors Cathay Pacific Airways and Qantas Airways . Cathay has been tracking closely to SIA in terms of first class confine service and profitability for years. Qantas has long been dominating the highly remunerative Kangaroo route and is ranked 5th in the world by Skytraxs survey . Please refer to appendix for the actual figures for both analysis below. Liquidity Analysis Current Ratio: SIAs catamenia ratio is to a greater extent than 50% above industry fairish and its competitors showing SIAs strong liquidity position in collision its short term obligations. However, with the aggressive acquisition of 19 A380s, its original ratio is expected to drop in the next a few(prenominal) years. This might not be a concern as the A380s is expected to bring more benefits than costs to SIA which will be explained in the next section. Operational Efficiency Analysis Assets employee derangement Ratio: SIAs recorded significantly lower asset turnover ratio compared to the industry average and its competitors, showing that SIA is relatively uneffective in utilising its assets in generating sales.

Receivables Turnover: With a lower receivables turnover ratio than the industry, SIA should consider reviewing its credit policies to ensure timely hookup of imparted credit that is not earning interest for the firm. Profitability Analysis gross revenue: SIAs revenue has been increasing for the last 2 years since FYE2005. However, this harvest-festival has slowed down from double digit growth to 8.6% recently. This is not a concern as SIA is still considered as one of the more profitable companies in the industry as shown in its mesh Income and Operating profit ratios. With the new addition of A380s they will overly be able to charge higher prices. Return on Assets/Equity/Invested Capital: SIAs ROA is 4 times above... If you want to mother a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper