FINANCIAL ANALYSIS

MBA - Financial Management



INTRODUCTION1

FINANCIAL RATIOS ANALYSIS1

Regional performance1

Profitability ratio analysis2

ROA %2

ROE %2

ROI %2

Efficiency ratio analysis3

Total asset turnover3

Receivables turnover3

Inventory turnover4

Liquidity ratio analysis4

Quick ratio4

Current ratio4

Stability ratio analysis5

Total debt to equity5

DuPont analysis5

NON - FINANCIAL INDICATORS ANALYSIS6

Macro Environment and International Tourism6

Standard vs. Independent7

Preferences of consumers8

Emerging Market Growth8

Customers9

Performance review10

The Employment strategies10

BUDGETING USING BALANCE SCORECARD10

Thomas Cook Group11

RICOH Singapore12

CONCLUSION AND SUMMARY13

RECOMMENDATIONS13

The perspective of customers13

The perspective of internal business13

The perspective of innovation and learning14

The financial perspective14

PART-B14

Evaluation of Cash-flow14

REFERENCES17

APPENDIX23

Introduction

Thomas Cook Group is a global offline and online travel company of Britain and it was created on the 19th of June 2007 (Thomas Cook Group plc, 2012). It was done by the merger of MyTravel Group plc and Thomas Cook AG. The merger took place through the formation of “NewCo.” Purchased Thomas Cook and MyTravel and then it was listen on the LSE - London Stock Exchange under the company's name of Thomas Cook Group Plc.

Thomas Cook Group offers packages based on charter (two or more travel components such as hotels, flights, representative services and transfers are bundled together), travel related financial services (travel assurance, pre-paid foreign exchange and travel finances) and independent travel management. The group of Thomas Cook primarily operates in the Europe and U.S (Thomas Cook Group plc, 2012).

Financial Ratios Analysis

Regional performance

The Group of Thomas Cook was affected by the challenging situation of the economy and the environment of trading. Although, Thomas Cook Group provided a significant improvement in the performance of cash flow and the adjusted the revenues and profit from the operations. It indicates that only 6% of the profit was found to be reduced with comparison of the prior year. The progress of this Group made against a number of initiatives based on strategic such as airline synergies, destination management, and setting up of an OTA - Online Travel Agent that were coupled with our refinancing as a successful factor in the month of May, 2011. As a result, it will serve the Group of Thomas Cook in their best drive towards growing the value of shareholder in future. The Board of Directors believes that the actions based on decisive taken towards to reinforce its United Kingdom (U.K.) segment and it will place the entire business in a solid and stronger position for the next years. With a proven ability and trusted brand portfolio for managing the business, the entire Group of Thomas Cook will continue to fulfil the demands of their customers in the coming time (Penman 2007).

Profitability ratio analysis

ROA %

The return on assets (ROA) indicates -7.66 in the year of 2011 while the figure was -0.04 in the year prior year i.e. 2010. Both situations shows that the operations of the company are not sustain over the period. As compared to the 2010, the company has less value but it un-sustainability increased in the year of 2011 that became risky for the entire operations of company. If it is considered, the value of return on assets (ROA) is decreasing every year that shows the negative performance of ...