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Ba Analysis

CONTENTS

1. Terms of reference…………………………………………….3

2. Executive summary…………………………………………....3

3. Introduction…………………………………………………....3

4. Findings………………………………………………………...5

4.1 RATIOS.................………………………………………...5

1. Profitability Ratios
2. Efficiency Ratios
3. Liquidity Ratios
4. Investment Ratios

4.2 SWOT Analysis……………………………………...........7

4.3 PEST Analysis…………………………………….……....8

5. Conclusions…………………………………………………....9

6. Bibliography………………………………………………….10

7. Appendices…………………………………………………...11

Appendix 1- Ratio Calculations for period 2001-2005

1. Terms of reference.

On the instruction of British Airways the financial analyst was appointed and asked to analyse the financial position and report on the future performance and profitability of the organisation as well as to explain what has influenced the ratios. The report has been handed in by the company's account department. In order to fill up the demand of the present report, some financial ratios from the previous years have been used (profitability, liquidity, efficiency, investment, gearing and growth). To give a clear overview of the airline the financial analyst will also examine the internal environment within the airlines operate (SWOT) and the sector of the industry, in which the company performs. Additionally, the report includes implications about external factors influencing the organisation (PEST).The independent investor will then consider whether it will be profitable to invest with British Airways £250,000.

2. Executive summary.

The financial reports of British Airways for the period from 2001 to 2005 were assessed in order to analyse and report future performance of the company.
In comparison with previous years the general performance of British Airways has been improved. The turnover, operating profit, attributable profit for 2005 went up by 3, 3%, 33.3% and 93.1% in comparison...