Ryanair holdings plc powerpoint (1)
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Transcript of Ryanair holdings plc powerpoint (1)
Analysis of Ryanair Holdings Plc.
By Ben o’Connor
Cian O’Brien
Darragh Wright
Sam mcEvoy
Introduction
Ryanair
• Established in 1985• Michael O’Leary• €4.9bn Revenue 2013 • 180 airports • 29 countries • 1,611 routes • 1,500+ daily departures• 81.5m passengers p.a.
Profitability Ratios
Gross Profit Margin
2013 2012 2011
27.9% 29.1% 28.3%
In comparison to Aer Lingus N/A 20.73% 17.9%
Gross Profit = Gross Profit x 100
Revenue
NET PROFIT
2013 2012 2011
Before Tax 13.3% 14.4% 11.6%After Tax 11.7% 12.8% 10.3%In comparison to Aer Lingus
Before Tax N/A 2.9% 6.6%After Tax N/A 2.4% 5.5%
Net Profit = Net Profit before tax x100Revenue
Return on Capital Employed (ROCE)
2013 2012 2011Before Tax 10.21% 9.51% 6.86%(After Tax) 8.94% 8.41% 6.1%
In comparison, Aer Lingus recorded a ROCE (Before Tax) of 4.88% in 2012
*ROCE (Before Tax) = EBIT
Capital Employed
Growth Ratio
GROWTH IN REVENUE
2013 2012 201111.2% 21% 21.5%
In comparison to Aer Lingus
N/A 8.1% 5.9%
*Growth in Revenue = Revenue Year 1– Year 2 x100 Revenue Year 2
Liquidity Ratios
Current Ratio and Acid Test Ratio2013 2012 2011
Current Ratio 1.97:1 2.14:1 1.89:1Acid Test Ratio 1.97:1 2.14:1 1.89:1
Aer Lingus – Current Ratio 2012 (2.28:1)
*Current Ratio Current Assets Current Liabilities
*Acid Test Ratio = Current Assets – Inventory Current Liabilities
Activity Ratios
Receivable And Payable Days
2013 2012 2011
Receivable Days 4.19 Days 4.28 Days 5.09 Days
Payable Days 14.40 Days 21.24 Days 21.15 Days
Aer Lingus in 2012 Payable days was 89.68 Days
*Receivable Days Trade Receivables X 365 Credit Sales
* Payable Days = Payables X 365 Cost of Sales
Gearing Ratios
Capital Gearing
2013 2012 201153.46% 53.98%56.3%
Aer Lingus (2012) – 41.03%
Capital Gearing = Non Current LiabilitiesCapital Employed
Interest Cover
2013 2012 2011
7.23 times 6.26 times 5.2 times
In comparison to Aer Lingus’ Financial Report 2012: 4.03 times
Interest Cover = EBIT
Interest Expense
Investor Ratios
Dividend Cover and Dividend per Share
2013 2012 2011Dividend Cover 1.16 times N/A 0.75 timesDiv. Per Share 34.05 cents N/A 33.65 cents
Ryanair have only paid out a dividend twice. First in 2011, and then again in 2013.
Compared to Aer Lingus who recorded a DPS of 3 cents in 2012
* Dividend Cover = Profit After Tax – Pref Div. *DPS = Div. Paid (Ord.)
Dividend Paid (Ord. Shares) Ord. Shares
Earnings Per Share
2013 2012 2011
39.45 cents 38.03 cents 25.21 cents
Aer Lingus recorded EPS at 6.4 cents in 2012
EPS = Net Profit after taxOrdinary Shares
Price/Earnings Ratio
2013 2012 201115.08% 11.77% 13.32%
Share Price €5.95 €4.47 €3.36
Aer Lingus - 17.27% (2012)(share price €1.105)
PE Ratio = Market Share Price EPS
* Market Share Price refers to share price at financial year end
Comparison Within the Industry
Year to Date Share Price Chart
THANKS FOR LISTENING