Ratio Analysis2009 - 2013

source logos: http://logos.wikia.com/wiki/EasyJet

http://commons.wikimedia.org/wiki/File:White_plane_icon.svg

Florence Schwiete - ID: 1415354

Rakib Hossain - ID: 1247475

Jonas Huether - ID: 1415339

Nirav Patel - ID: 1230775

• 1995: founded by Stelios Haji-Ioannou

• Headquarter “easyland” in London Luton

• Only flights from Luton - Glasgow and Edinburgh (29£)

• 1996: easyJet goes international

source: http://corporate.easyjet.com/about-easyjet/our-network.aspx?sc_lang=en

over

• 30 countries

• 600 routes

• 200 Airbus Aircraft

• 8000 people employed

• 60 million passengers

Ratio Analysis

Profitability ratio

Efficiency ratio

Current, solvency, liquidity and gearing ratio

Investor ratio

Weaknesses and Limitations

Recommondations

Profitabilty ratio

2010: volcanic ash disruption total cost and loss £57 million2013: easyJet has introduced allocated seating

Profit before tax per seat (in £)

Efficiency ratio

Efficiency ratio

Efficiency ratio

Efficiency ratio

Solvency ratio

Solvency ratio

Investor ratio

Jonas Huether

Investor ratio

Jonas Huether

Investor ratio

Jonas Huether

Investor ratio

Jonas Huether

• Exclusion of inflation rates

• depreciation of equipment and machinery can affect profits

• short time cuts of expenses can improve profitability but

have negative effects on long-term performance

• ratios use historic data and information can be outdated by the

time the ratios are calculated

• Investor Relations are more effective

Weaknesses and limitations

Jonas Huether

Recommondations

Jonas Huether

Recommondations

Problem: high fuel costs

• invest in fuel saving, lighter aircrafts

• average age of airplanes: 4.5 years

• technology investments (2013): £7 billion

• expand the use of polymer paint

• reduces fuel consumption by 1-2%

• increase the market share in the key-market: Europe

• maintain customer satisfaction: on-time performance 86%

(2013)

• expand e-commerce: 85% of sales through the website

(2013)

Jonas Huether

EasyJet, 2009. Easyjet annual report [PDF]. Available at:<

http://2009annualreport.easyjet.com/files/pdf/easyJet_AR09.pdf>

[Accessed on 16th of November 2014].

EasyJet, 2010. Easyjet annual report [PDF]. Available at:<

http://2010annualreport.easyjet.com/files/pdf/Full_Report_easyJet_AR10.pdf

> [Accessed on 16th of November 2014].

EasyJet, 2014. Easyjet annual report . [PDF]. Available at:<

http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/investors/result-center-

investor/annual-report-2013.pdf> [Accessed on 16th of November 2014].

Fame, 2014. EasyJet Plc. [Online]. Available at:< https://fame2.bvdep.com/version-

2014108/Report.serv?_CID=108&context=25HH97OW95F4BS9 > [Accessed on 14th

of November 2014]

Fame, 2014. Ryanair Holdings Public Limited Company. [Online]. Available at:<

https://fame2.bvdep.com/version-

2014108/Report.serv?_CID=87&context=9E5797OW9F1P382&SeqNr=0> [Accessed

on 14th of November 2014]

Morning star,2014. Easyjet Plc.[online] Available at:-

<http://financials.morningstar.com/ratios/r.html?t=ESYJY>[Accessed on 9th November

2014]

MSM Media Ltd, 2014: Reach for the skies. [Online] Available at: <

http://www.sharesmagazine.co.uk/articles/feature-airlines#.VGYOhd7GxSU >

[Accessed on 16th of Novemeber 2014].

Ryanair, 2013. Ryanair final annual report [PDF]. Available at: <

http://www.ryanair.com/doc/investor/2013/final_annual_report_2013_130731.pdf

[Accessed on 17th of November 2014].

Sources

2014. Annual report and accounts 2013 EasyJet PLC. Available through: Company

website at: <http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-

V2/pdf/investors/result-center-investor/annual-report-2013.pdf> [Accessed 14.11.2014].

2014. Annual report and accounts 2013 EasyJet PLC. Available through: company

website, EasyJet PLC at: <http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-

V2/pdf/investors/result-center-investor/annual-report-2013.pdf> [Accessed 17.11.2014].

2014. share price information EasyJet. Available through: Company website EasyJet at:

<http://corporate.easyjet.com/investors/share-price-information/share-price-

charting.aspx?sc_lang=en> [Accessed 14.11.2014].

2012. Annual report and accounts EasyJet PLC. Available through: company website

EasyJet at: <http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-

V2/pdf/investors/result-center-investor/annual-report-2011.pdf>.

Cash Flow Per Share. [on-line] Available at:

<http://www.investopedia.com/terms/c/cashflowpershare.asp> [Accessed: 17.11.2014].

Press Information Kit EasyJet PLC. [on-line] Available at:

<http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/content/dl017-press-

pack-july-2013-q3.pdf> [Accessed: 17.11.2014].

Bamber, M. and Parry, S. eds., 2014. Accounting and Finance for Managers. Kogan

Page Limited.

Bowers, S., EasyJet anger as Stelios calls for more boardroom changes. [on-line]

Available at: <http://www.theguardian.com/business/2011/sep/05/easyjet-anger-stelios-

boardroom-changes> [Accessed: 17.11.2014].

Sources

Meikle, J., Volcanic ash cloud: thousands face flight delays and cancellations. [on-line]

Available at: <http://www.theguardian.com/world/2011/may/24/volcanic-ash-cloud-flight-

delays-heathrow> [Accessed: 17.11.2014].

Menon, C., The Limitations of Earnings Per Share. [on-line] Available at:

<http://www.morningstar.co.uk/uk/news/105269/The-Limitations-of-Earnings-Per-

Share.aspx> [Accessed: 17.11.2014].

Milmo, D., EasyJet shares dive as fuel costs,snow and anger at baggage fees threaten to

double losses. [on-line] Available at:

<http://www.theguardian.com/business/2011/jan/20/easyjet-shares-warning-loss-

double>.

Sumberg, J., Easy Jet paint job makes fuel bills less of a drag. [on-line] Available at:

<http://www.bbc.co.uk/news/business-12428667> [Accessed: 17.11.2014].

Sources