April 8, 2023 Universal Business School

Financial Analysis

Presented By: A.Wadut Al Mamun(1402)

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Contents

• Introduction• Hypothesis• Ratio Analysis• Conclusion

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Introduction

• Started by Naresh Goyal as Air Taxi Operator in April 1992• Started Indian commercial airline operations on 5 May 1993 with a fleet of

four leased Boeing 737-300 aircraft• Scheduled airline status was granted on 4 January 1995• Initial investment of US$10 million• 80%of its stake controlled by Naresh Goyal• Jet’s parent company, Tail Winds Ltd.• Began international operations to Sri Lanka in March 2004.• Jet, is headquarters in Mumbai, India

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Introduction• Operates over 370 daily flights to about 68 destinations both in India and

international (abroad)• Listed in the NSE in the year 2005• Includes major cities like Mumbai, Delhi, Chennai, Jaipur, etc.• Second Leg cities like Aurangabad, Patna, Nagpur, etc.• 21 international destinations in 17 countries across Asia, Europe & North

America• International destination includes cities like San-Francisco, New York,

Singapore, London (Heathrow), Hong Kong, Colombo, Abu Dhabi, Dubai, etc.

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Hypothesis

• By observing the current scenario and the recession in 2008-09 we hypothesise the revenue of the company going down every financial year.

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Market Share

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Balance Sheet and P&L Statement

Microsoft Excel Worksheet

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Ratio Analysis

Ratio Formula Mar '13 Mar '12 Mar '11

Current RatioCurrent Asset/ Current Liability

0.61615101 0.58985 1.071049

Current liabilities have increased dramatically, so the current ratio has decreased.

Quick Ratio

(Current Asset-Inventory)/Current Liability

0.53959608 0.501707 0.943102

Current liabilities have increased dramatically, so the Quick ratio has decreased.

Inventory Turnover RatioNet Sales/Average Inventory 22.83 19.46 17.85

Net Sales has increased gradually, so the ratio has increased in the same proportion.

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Ratio Analysis

Ratio Formula Mar '13 Mar '12 Mar '11

Payable Turnover RatioNet Credit Sales/Av Accounts Payable NA NA NA

Receivable Turnover RatioNet Credit Sales/Av Accounts Receivable 13.7514912 13.6409 14.39035

Sundry Debtors has increased gradually, so the ratio has been decreasing.

Working Capital Turnover Ratio Net Sales/Working Capital -4.272546579 -4.203564 32.36736Although Net sales has been increasing but Current liability has been increasing in bigger proportion. Hence the ratio has been decreasing.

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Conclusion

As per the ratio analysis of Jet Airways for three years, we come to the conclusion that year 2011 was good as compared to other two years. Except inventory turnover ratio, all ratios decreased heavily in 2012 and again increasing in 2013. This shows that company is again started doing well after 2012.

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Thank You for

Flying with Jet Airways.