DISCLAIMER — This is NOT investment advice now or EVER. This article was written by a group of MBA students to extend their knowledge. By no means is a single author, a licensed nor a professional investment advisor.
This report provides a qualitative and quantitative analysis of the two major players, Qantas Airways and Virgin Australia Holdings Limited, of the domestic airline industry in Australia. This has been done to provide a deeper insight into investment decisions by analyzing the financial performance of the two companies.
Under quantitative analysis, we have analyzed certain ratios and performed certain assessments under the following categories — profitability ratios, operating efficiency ratios, share valuation ratios, liquidity ratios, horizontal analysis, DuPont analysis, and sustainable growth rate for the past five years. On the other hand, under qualitative analysis, we have explained the industry trends and stock price movements of the two companies over the last five years. Finally, we have provided investment recommendations suggesting which a better company to invest in. From our analysis, we have concluded that investing in Qantas would be a better option (please read the disclaimer before you make the decision to buy this stock)
AUSTRALIAN AIRLINE INDUSTRY- OVERVIEW
The domestic airline industry in Australia operates aircraft on scheduled routes within Australia in order to provide transportation to both passengers and…
