Jet Airways Case Study

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COMPARISON
Jet Airways (India) Limited is also one of the companies that provide air transportation. Jet Airways is an airline based in Mumbai, India. Jet Airways Ltd is listed on the Bombay Stock Exchange which is known as BSE on December 2004. BSE is an Indian Stock Exchange which Jet Airways Ltd is one of the companies that listed in BSE. Comparison between AirAsia Berhad and Jet Airways Ltd with same ratios to determine the companies between each other:

GROSS PROFIT MARGIN:
Gross profit margin of AirAsia Berhad for year 2015 is 39.22%.For Jet Airways Ltd, the gross profit margin is (4.48)%. AirAsia Berhad obtains a positive and stable gross profit margin for previous 5 years. Jet Airways Ltd will be different compare with AirAsia Berhad …show more content…
AirAsia Berhad obtains positive return on assets which means AirAsia Berhad have maximise the assets that occurs by company to generate earnings. Jet Airways Ltd will be different because Jet Airways Ltd obtains negative return on assets. This able to let investors find out that Jet Airways Ltd not maximise their assets to generate earnings. This also defined Jet Airways Ltd have invest high amount of capital but generate little earnings. Therefore, return on assets of will determine the ability management of the …show more content…
Earnings per share is one of the profitability ratios that investors will likely concern about. This information provides to investors about the funds that they invest and the earnings for every single share they occur. For Jet Airways Ltd, earnings per share for year 2015 is India Rupee, Rs (159.66). Negative EPS will lead to negative Price Earnings Ratio. Negative EPS provide negative impact to Jet Airways Ltd which negative EPS is defined as the company is having loses. Therefore, AirAsia Berhad obtains profit to investors based on the EPS.
DEBT TO EQUITY RATIO:
Debt to Equity ratio of AirAsia Berhad for year 2015 is 3.79. Based on analysis of Jet Airways Ltd, the debt to equity ratio for the same year is (2.33). Debt to equity ratio provides message to investors that the riskiness of the company. An ideal debt to equity ratio will be below positive 2.0. Jet Airways Ltd obtains negative debt to equity ratio. This negative ratio also provides message to investors that Jet Airways Ltd obtains negative net worth. Hence, Jet Airways Ltd will be difficult to repay its liabilities and the risk of the company will be assumes as high.
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