StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Financing and Real Investment - Essay Example

Cite this document
Summary
Financing and Real Investment Table of Contents A3 3 Introduction 3 Brief Description of RyanAir Plc 3 Competitive Position of RyanAir 3 Financing and Real Investment Activities in RyanAir 4 A5 6 Introduction 6 Financial Condition and Performance of RyanAir 6 Financial Strategic Recommendation 9 Reference 9 A3 Introduction This paper will attempt to present an analysis of financial and real investment of RyanAir Holding Plc…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.5% of users find it useful
Financing and Real Investment
Read Text Preview

Extract of sample "Financing and Real Investment"

Download file to see previous pages

The Ryan family of UK started the business with 1 15-seater Bandeirante aircraft and 25 staffs. Within the span of less than 30 years, it has become the best low cost line service provider in entire European market. It is operating in the European market with 8,896 staffs, 272 Boeing 737-800 serving more than 73,553,580 passengers annually. It has achieved tremendous growth in terms of finance, passengers and market share. Its no-frill strategy for low cost has made it to achieve cost leadership in their entire Europe (RyanAir, “History of RyanAir”).

Competitive Position of RyanAir With rapid growth of passengers and market share, it is become the leader of low cost airline industry. Its effective no-frill strategy for low cost leadership has brought a revolution in the market. It has been able to achieve the upper hand position in the market by offering lowest prices, by serving the largest coverage and by achieving the highest traffic growth. The following figure presents a comparison of low cost competitors in the European market. . Financing and Real Investment Activities in RyanAir With the increasing market share and increasing volume of operational business, RyanAir requires a significant amount of aircraft and other assets including plant, property and equipment.

As per the reported consolidated balance sheet of 2011, RyanAir has increased its net value of plant, equipment and property by €619.5 million. The consolidated cash flow of RyanAir has presented the €897.2 million outflow of cash in 2011 comparing to €997.8 millions in 2010. However, 2011, RyanAir has made lower investment comparing to the previous years but, management has decided to invest in the real assets with increasing market share (RyanAir-c, p.3-8). The financial activities of RyanAir also show a positive indication.

The management has disclosed that within the last three years, RyanAir has returned €850 million to its shareholders but still its financial position is quite. In 2011, the net cash flow from financing activities has reduced in 2011 as it has repaid the long term borrowings of €280.7 million and also pain dividend to shareholders of €500.0 million. This is good indication for the shareholders as in spite of paying €500.0 million of dividends its retained earnings stood at €1,967.6 million.

Besides, the company has also made investments in financial assets and derivatives in the previous years and in 2011, it holds the Derivative financial instruments of €23.9 million and Available for sale financial assets of €114.0 million (RyanAir-c, p.3-8). A5 Introduction In order to assess the financial condition of any organisation, the financial analysis techniques are quite necessary important. However, for the financial analysis techniques, certain skills are required which is

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financing and Real Investment Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1428467-financing-and-real-investment
(Financing and Real Investment Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/finance-accounting/1428467-financing-and-real-investment.
“Financing and Real Investment Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/finance-accounting/1428467-financing-and-real-investment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Financing and Real Investment

The effects of the 2008 financial crisis on the investment in the Gulf area specially on Qatar

The effects of the 2008 financial crisis on the investment in the Gulf area especially Qatar Name: University: The effects of the 2008 financial crisis on the investment in the Gulf area-Qatar Introduction The 2008 financial crisis negatively affected investments in the Gulf area and especially Qatar.... In this case, the decline in oil prices severely affected the foreign exchange earnings and led to low foreign investment capital inflows in Qatar economy....
4 Pages (1000 words) Research Paper

The effects of the 2008 financial crisis on the investment in the Gulf area and Qatar

The Impacts of 2008 financial crisis on investment sector in the Gulf region Introduction The global financial crisis began to show its influx in the middle of 2007, and later spread into the whole 2008.... While closely evaluating the investment activities of Gulf countries including Qatar during 2008 financial crisis and post-recession period, it seems that the global financial crisis did not affect the Gulf region's investment sector much when compared to other regions....
4 Pages (1000 words) Research Paper

Effects of the 2008 Financial Crisis on the Investment in the Gulf Area

Name: Instructor: Course: Date: Effects of the 2008 financial crisis on the investment in the Gulf area especially in Qatar The global financial crisis affected the whole world though the impact has been severe in the Arab Countries.... Qatar's Central Bank has taken measures particularly in the real estate sector.... Qatari Central Bank issues instructions on buying of shares and financing of real estate projects....
4 Pages (1000 words) Research Paper

The Effects of the 2008 Financial Crisis on the Investment in the Gulf Area

The paper attempts to explore how the gulf region, with a special emphasis on Qatar has been impacted in their investment programs due to ongoing financial crisis that began in 2008.... This amply proves that investment in the aftermath of 2008 financial crisis is shaken but not shelved.... hellip; The effects of the 2008 financial crisis have been global and the gulf region that includes Kuwait, Bahrain, UAE, Oman and Qatar has a fair share of their investment program disruption....
3 Pages (750 words) Essay

Real Estate Investment

The researcher states that generating a Risk profile is an integral part of any financial investment process.... It is, in fact, an overall part of the overall investment strategy, which is used by an investor to arrive at a decision.... First & the foremost, the recent boom in real estate investment is due to the fact that their euro has been trading strongly in comparison to the dollar.... But nevertheless, one must always take this aspect into consideration at the time of investment planning....
7 Pages (1750 words) Case Study

Joint Venture Investment Appraisal Report

This essay stresses that NPV calculates the net value of the investment while taking into consideration the changing value of cash.... The value of money will be affected by interest rates payable on a certain investment.... In this situation it is important to use both profitability indexing and NPV to evaluate the viability of an investment.... The investment needs of IFM qualify them to get a long term loan from a development bank....
11 Pages (2750 words) Assignment

The effects of the 2008 financial crisis on the investment in the Gulf area especially on Qatar

In the Gulf Area, most countries that highly dependent on the oil industry faced a period of reduced investment.... During this period also, the international monetary funds and the World Bank encouraged financial institutions to provide low interest loans for the local people to inspire investment (Siddiqi, 2013)....
4 Pages (1000 words) Essay

Constructing an International Real Estate Portfolio

direct investment in real estate entails purchasing the whole or part of a physical property.... Direct real estate investment is advantageous in that the investors have direct control.... Direct investment also allows investors to reap benefits of tax advantages.... This report "Constructing an International real Estate Portfolio" focuses on approaches to gain exposure to foreign real estate markets, as well as their merits and demerits....
8 Pages (2000 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us