Subjects:
Although EasyJet offers very cheap flights it still has a higher share price than companies offering more expensive flights for example British Airways.
It is shown that compared to other airline companies, EasyJet is doing very well. It is important that this is looked at before assessing EasyJet’s financial status because it means that we will have a view of other companies in the same market.
In the table below it is shown that, excluding 1999, the net profit has been increasing. Th
. . .
(These figures are taken from the Consolidated Profit and Loss Accounts for each year)
The table below shows that ever since 1995, when EasyJet started running, their number of passengers has increased. Revenue (£m) Net Profit (£m) Net Profit Margin
1998 77. This shows that the company is expanding at quite a fast rate. I found that during the year 2001 the firm’s return on net assets was 12. This is good because it means that with careful control of expenses, profit can be greatly increased. It shows that EasyJet has a large amount of net assets that are not being used as usefully as they could be. 68%
When compared to past years, the return on net assets for 2001 shows that the company could be using their assets better to help generate more profit. This means that the costs of employing salesmen and paying a commission to travel agents are reduced greatly. This is very promising as, and even the year 1999 can be viewed positively as it shows that the company were able to overcome whatever difficulties they faced.
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