THE DART GROUP PLC

Dart Group PLC Financial Analysis



Dart Group PLC Financial Analysis

Introduction

Dart Group PLC is a United Kingdom-based aviation services and distribution company. The Company specializes in the scheduled operation and charter flights in order to give leisure destinations throughout Europe, and the distribution of fresh, temperature-controlled products to supermarkets and wholesale and markets throughout the United Kingdom. The Company Operates in Two business segments:

Distribution

Aviation

The aviation segment includes the Company's passenger and freight charter operations, scheduled leisure airline and tour operator associated activities, trading from under the Jet2.com and Jet2holidays.com brands. The Company's distribution business comprises of Fowler Welch-Cool chain limited which a logistics provider serving the United Kingdom-based retailers, importers and manufacturers. During The Fiscal year ended March 2011, the company operated more than 21 Boeing 737-300 aircrafts Including eight quick-change aircrafts, and nine Boeing 757-200 aircrafts. Hence, the company has increased their revenue £542.9 million (approximately $844.8 million) which is 24.9% increased in 2010.

Financial strategies used by Dart Group PLC (DTG)

According to Dart Group PLC (DTG) financial strategies should be correspondence through the impressive strategy which has been determined from the process of strategic planning of the organization. Therefore, each strategy must bear the hallmark that allows you to support the implementation of the overall strategy and thus the mission and strategic objectives. But whatever the overall business strategy, from the functional point of view, the financial strategy should include a set of key areas that are of strategic analysis has been performed (Paul, 2009, pp. 139).

Financial ratios of Dark Group PLC

In this section, we will predictions how the future earnings of the Dark Group PLC has been determined. The appearances of the financial prediction are extremely difficult as to write this part where you need to provide solid financial data based on reasonable estimates.

Assumptions

The assumptions are as followed:

Expenditures

The expenditure has been increased with 10% along with the other expenses moreover, replacing the general positions of inputs, for example: production line, warehouse truck.

Sale

This is the most crucial element of the whole forecast. Sales have been increased with 20% from last year. As sales increased, this will have a direct impact on account receivables and payables.

Costs

Cost estimation is based on the introducing the variable costs and profit margin, which we intend to pursue the sale. It also presents the main categories of fixed costs (Lawrence, 2008, pp. 32). On bases of these assumptions, the following ratios has been calculated in to determined and has been compared to previous years, in order to advice the measures to over come the downfall.

Liquidity Analysis

Liquidity Ratios

2012

2011

2009

2008

Quick Ratio

1.2

0.67

0.59

0.3

Current Ratio

1.76

0.82

0.72

0.53

The liquidity of the Dark Group PLC has been increasing. The current ratio and Acid test ratio demonstrate the short-term liquidity picture of the company which is doing well comparing from the last year. The acid test ratio is below the lower median for the industry average which is weakness for a company and unattractive for the investors. The current ratio is between the lower and medium quartile and hence, ...