A detailed financial analysis of Thomas Cook Group
Analysis of Financial Statements
Financial Analysis
Lecturer:
Student Number:
Word count:
Table of contents
Introduction - About Thomas Cook Group PLC 5
Competitor’s comparison with TCG PLC with the help of Ratio Analysis 6
Liquidity Ratios 6
1) Current Ratio 6
2) Quick Ratio: 8
Leverage Ratios 9
1) Debt Equity ratio: 9
2) Debt Ratio: 11
3) Equity Ratio: 12
Profitability Ratios 14
1) Gross Profit Ratio 14
2) Net Profit Ratio: 15
3) Return on Assets (ROA): 16
4) Return on Equity (ROE): 17
Activity Ratios 19
1) Assets Turnover Ratio: 19
2) Trade Receivable Period 21
3) Trade payable Period 22
An Initiative the Company Will Take to Improve the Position …show more content…
as the competitor for Thomas Cook Group for conducting the comparative analysis of the financial performance. The Balance sheet and the Income statement of Expedia Inc. are provided below. The data analysis is done by computing the different ratios like the profitability, efficiency, financial and liquidity ratios for the two companies for the period 2015 to 2017 and the comparative analysis can be done to know the actual financial performance. We would be also suggesting recommendations for improving the performance of the Thomas Cook with respect to the ratios computed after the ratio analysis.
Ratio analysis is a technique of analysis and interpretation of financial statements. It is used as a device for analysis and interprets the financial health of a firm. Analysis of a financial statement with the aid of ratio helps to arrangements in decision making the control.
Liquidity Ratios
1) Current Ratio
Current ratio may be defined as the relationships between current assets and current liabilities. It is calculated by dividing current assets by current liabilities. Current assets are those, the amount of which can be realized within a period of one year. Current liabilities are those amounts which are payable within a period of one year. A current ratio of 2:1 is considered
Analysis of Financial Statements
Financial Analysis
Lecturer:
Student Number:
Word count:
Table of contents
Introduction - About Thomas Cook Group PLC 5
Competitor’s comparison with TCG PLC with the help of Ratio Analysis 6
Liquidity Ratios 6
1) Current Ratio 6
2) Quick Ratio: 8
Leverage Ratios 9
1) Debt Equity ratio: 9
2) Debt Ratio: 11
3) Equity Ratio: 12
Profitability Ratios 14
1) Gross Profit Ratio 14
2) Net Profit Ratio: 15
3) Return on Assets (ROA): 16
4) Return on Equity (ROE): 17
Activity Ratios 19
1) Assets Turnover Ratio: 19
2) Trade Receivable Period 21
3) Trade payable Period 22
An Initiative the Company Will Take to Improve the Position …show more content…
as the competitor for Thomas Cook Group for conducting the comparative analysis of the financial performance. The Balance sheet and the Income statement of Expedia Inc. are provided below. The data analysis is done by computing the different ratios like the profitability, efficiency, financial and liquidity ratios for the two companies for the period 2015 to 2017 and the comparative analysis can be done to know the actual financial performance. We would be also suggesting recommendations for improving the performance of the Thomas Cook with respect to the ratios computed after the ratio analysis.
Ratio analysis is a technique of analysis and interpretation of financial statements. It is used as a device for analysis and interprets the financial health of a firm. Analysis of a financial statement with the aid of ratio helps to arrangements in decision making the control.
Liquidity Ratios
1) Current Ratio
Current ratio may be defined as the relationships between current assets and current liabilities. It is calculated by dividing current assets by current liabilities. Current assets are those, the amount of which can be realized within a period of one year. Current liabilities are those amounts which are payable within a period of one year. A current ratio of 2:1 is considered