FINANCIAL STATEMENT (2014) (detailed data shown in the appendix 1)
General Description & Comments
General Description
The table 1.4(detailed data shown in the appendix) represents the calculation of all the ratios needed for estimating the profitability of the company in a 3-year period. In the table there are the calculated margins for profitability, leverage – to estimate the amount of debt in the company’ assets. In 2013 and 2014, EasyJet was not highly leveraged, because the amount of debt is less than the equity in the company; but 2012, the yearly debt exceeded the equity, meaning that in 2012 the company was highly leverage. The last part of the table is concerning the company’s security and assets, which can be bought or sold quickly, meeting the company’s financial obligations, without affecting the asset’s price.
The table 1.5(detailed data shown in the appendix) shows where the value of a certain ratio is, depending on the “Normal” range, of which a company should perform. The table illustrates that most of the ratios are stable and in the normal range, but there are some that are higher and some that are lower than the normal range. The …show more content…
The high net margin indicates that the company has been pricing its products correctly and exercised a good cost control. In comparison with 2012 and 2013, ROA in 2014 was high. The high return to assets shows that the company has used its assets correctly in order to generate earnings. The asset turns in the period of 3 years (2012, 2013, 2014) were normal, meaning that there have been enough revenues for the company. The return of equity ratio has been growing every single year, meaning that the percentage that shareholders earned for their investments has increased. In 2014 the percentage of ROE ratio was the highest representing the highest efficiency in utilizing the company’s equity base and the best return is to
General Description & Comments
General Description
The table 1.4(detailed data shown in the appendix) represents the calculation of all the ratios needed for estimating the profitability of the company in a 3-year period. In the table there are the calculated margins for profitability, leverage – to estimate the amount of debt in the company’ assets. In 2013 and 2014, EasyJet was not highly leveraged, because the amount of debt is less than the equity in the company; but 2012, the yearly debt exceeded the equity, meaning that in 2012 the company was highly leverage. The last part of the table is concerning the company’s security and assets, which can be bought or sold quickly, meeting the company’s financial obligations, without affecting the asset’s price.
The table 1.5(detailed data shown in the appendix) shows where the value of a certain ratio is, depending on the “Normal” range, of which a company should perform. The table illustrates that most of the ratios are stable and in the normal range, but there are some that are higher and some that are lower than the normal range. The …show more content…
The high net margin indicates that the company has been pricing its products correctly and exercised a good cost control. In comparison with 2012 and 2013, ROA in 2014 was high. The high return to assets shows that the company has used its assets correctly in order to generate earnings. The asset turns in the period of 3 years (2012, 2013, 2014) were normal, meaning that there have been enough revenues for the company. The return of equity ratio has been growing every single year, meaning that the percentage that shareholders earned for their investments has increased. In 2014 the percentage of ROE ratio was the highest representing the highest efficiency in utilizing the company’s equity base and the best return is to