Infront Analytics provides full transparency on calculation formulae for most analytics. Just click the market multiple or financial ratio figure to open the formula viewer. It is possible to further drill down through the calculation chain clicking underlined figures. About Financials Ratios Financial ratios are generally ratios of selected values on an enterprise's financial statements.
Introduction December 10, was a crucial day in the history of Flybe1—a leading UK airline. The launch price of the company was p per share, with the global value of the business an estimated?
It is a massive market. Finally, the great investment of Jack Walker and his family was accomplished. However, after a few months, something went wrong: Despite good results of Flybe in a doldrums market, the investors did not reward the business of the company. With this in mind, in an attempt to gain understanding, this report will analyse the historical record of the company and its position in the market, and will further assess the value drivers and financial company performance with the use of key performance indicators KPIs and key ratios.
Market and Competitors Flybe is a leading UK airline company and, with over 6. In order to survive in a new competitive arena, the airline operator changed its model and became a low-cost regional airline based on the no-frills model, leveraging regional airports in Europe with a focus on the UK market.
With this new model, Flybe was in strong competition with two major low-cost operators in the European market—Ryanair and EasyJet—as well as direct competitors represented by other UK no-frills and regional operators, such as Jet2.
Proof of this strategy is the high number of UK airports served by the companywhich makes the company one of the most widespread in the country.
Despite a turbulent market8, Flybe has increased its year-by-year revenue during the last 4 years with the exception of It is one of the most prominent low-cost company in the world and it is leader in Europe. It can be used as a benchmark inside the low-cost airline industry.
It is the second largest low-cost carrier with over 40million passenger in Source: Both with Ryanair represents one of the most successful low-cost model in Europe. For the financial year ended on 30 September EasyJet published a short report of strong performances.
Revenue increase decrease comparison However, recent history suggests that the company has been struggling in the face of mounting costs and increasing competitions. Furthermore, by analysing the EBIT, the company can be seen to have incurred a loss of? Operating profit Page 5 Flybe Group PLC Moreover, taking into account the gross profits margin of Flybe for the years —, these are seen to be lower than competitors.
Despite ratio stability, showing an average of Gross Margin Comparison - 5.
During the same period, Ryanair experienced an average of In order to improve this situation, Flybe introduced a fuel surcharge of?
Net Profit Margin Comparison 0. However, despite a reduction of 1. EasyJet performance cannot be evaluated in Financial Year With this in mind, notably, liquidity was found to be in crisis during the financial year —, with the value of the acid test ratio and current ratio below 1, thus causing liquidity problems.
In comparison with competitors, is it possible to notice that Flybe liquidity is lower than EasyJet and Ryanair. This means that the company cannot convert quickly its assets in cash and had major problem in a market shaped by crisis. Current Ratio comparison 2.
Acid test ratio comparison Finally, gearing ratio is in line with competitors and, during the last financial year, Flybe improved this ratio. According to CAA, during the period —, the load factor of Flybe decreased from Load Factor Trend - Page 11 Flybe Group PLC Comparing these data with competitor performance, it can be seen that, notwithstanding a turbulent market, British Airways consolidated an average With this in mind, it can also be seen that all the other no-frills operators that have been analysed have also experienced a ratio increase.
Moreover, comparing the ratio with low-cost competitors, it is necessary to ensure improvement.The Share Centre Limited is a member of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority under reference Registered office: Oxford House, Oxford Road, Aylesbury, Buckinghamshire, HP21 8SZ.
Flybe is a regional airline operating in the United Kingdom that is dealing with legacy issues. The company leased planes that simply were too big, but when the lease deal expires, it will allow.
Flybe Group plc engages in the operation of airlines. The company operates through Flybe UK and Flybe Aviation Services segments. The Flybe UK segment offers scheduled passenger transportation in the United Kingdom, as well as scheduled passenger transportation from the United Kingdom to rest of Europe; and training programs.
Ratios valuation of Flybe Group PLC (FLYB | GBR) The EV/EBITDA NTM ratio (also called EBITDA multiple or enterprise multiple) is a well-known company valuation metric that compares a company's overall value to its operational earning power. We would like to show you a description here but the site won’t allow us.
Flybe reported another net loss for the financial year to Mar – its sixth time in the red in the past eight years. This suggests that it may have a fundamental, structural problem, or may need better execution of its strategic aims.