This website uses cookies to ensure you have the best experience. Learn more

Accounting Analysis

4768 words - 20 pages

Table of Contents

* Executive Summary 2

* Company Profile 3

* Business Model 3

* Strategy 4

* Market Environment Analysis
* Carbon Tax 4
* Tourism 5
* Industry Outlook 5

* SWOT Analysis 6

* Financial Analysis
* Profitability 9
* Liquidity 16
* Solvency 17

* Comparison With Virgin Australia
* Profitability 19
* Liquidity 20
* Solvency 21

* Conclusion and Recommendation 22

Reference 23

Calculation spreadsheet – Qantas 27
Calculation spreadsheet ...view middle of the document...

In addition, Qantas also operates cargo services through its wholly owned subsidiary Qantas Freight.
Business Model
Qantas also has diversification of businesses in multiple industries through its partially-controlled subsidiaries. The two main subsidiaries, Qantas and Jetstar generate about 70% of its total revenue streams. The table below explains the Business Model Canvas of Qantas.

Firstly, Qantas has a wide market business connection around the world covering domestic and international high and low-fare airlines. Qantas has many cooperative partners with various codeshare agreement. For example, in 2010, Qantas entered a joint services agreement with British Airways (BA) so that Qantas customers can now reach 29 destinations in Europe via codeshare services operated by BA. Also, since 2008, Qantas commenced non-stop services three times a week between Sydney and Buenos Aires, and also six return services per week from Sydney to Santiago, via Auckland, on codeshare services operated by Oneworld partners. (Qantas 2014)
Secondly, besides a large number of partners to improve business coverage, Qantas has planned to reduce its operating cost in order to improve efficiency. For instance, over the next 10 years, the Qantas Group has committed a capital investment around US$17 billion in more fuel efficient, next generation aircrafts. Fleet renewal will offer great improvements to fuel efficiency in the long run. (Qantas 2014)

Market Environment Analysis
* Carbon Tax Repeal
Australian government adopted the carbon tax scheme in the July 2012. The scheme aimed to reduce greenhouse gas emissions and encourage investments in the energy efficiency technology. The scheme also drove up the price for airline tickets, which hurt the airline industry further. The Abbott government passed legislation and revoked the carbon tax scheme in July 2014. (Cox 2014) It would be beneficiary for airline companies.

* Tourism
Tourism contributes a significant proportion to usage of airline services. It is also one of the important parts of the Australian economy. During the year of 2012-2013, tourism has directly contributed 42.3 billion dollars to the GDP which is about 2.8% of the total GDP in Australia. (Kookana 2014) According to the forecast by Tourism Research Australia, the number of inbound visitor arrivals is expected to grow average 4% annually to the year of 2023 and total number of outbound passengers would also be growing at a rate of 3.3% annually. (Quinn 2013) Domestic tourism within the country would also be growing for the next decade. The increase in both domestic and international tourism activity would create a large amount of demand for airline services, which would have a positive impact on the Australian airline industry.
* Industry Outlook
With the continuous growths of tourism and abolishment of carbon tax, the prospect of Australian airline industry could be expected reasonably positive. The Australian...

Other Papers Like Accounting Analysis

Accounting Essay

373 words - 2 pages Accounting -- Recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties needed financial information. Managerial Accounting -- Provides information and analysis to managers inside the organization to assist them in decision making. Public Accountants -- Provide accounting services to individuals or businesses. Auditing -- Reviewing and evaluating the information

Accounting Essay

908 words - 4 pages category? Describe any problems the company many experience with cash flow from your analysis of the cash flow statement. Answer: 24.Show the change in Retained Earnings for the 2 most recent years. What was net income for each year? How much was paid out in dividends each year? Answer: $ Million | 2012 | 2011 | Retained Earnings | 101,289 | 62,841 | Change in retained earnings | 38,448 | | Net Income | 41,733 | 25,922


1742 words - 7 pages ACCT 601– Managerial Accounting Investigating Cost Drivers Part A – Instructions The object of this exercise to gain a better understanding of overhead costs through the use of regression analysis. In particular, you will investigate which service department activities appear to drive or cause departmental overhead. The data you will use is from a proprietary database which contains detailed departmental (i.e. USED, NEW CAR, SERVICE

Accounting - 1555 words

1555 words - 7 pages accounting system keeps an up-to-date record of both ending inventory and cost of goods sold at any point in time. Periodic Inventory System Records the cost of purchases as they occur (in an account separate from the inventory account), takes a physical count of inventory at the end of the period (periodically), and applies the cost of goods sold model to determine the balances of ending inventory and cost of goods sold. Inventory Cost Flow

Cost Accounting

1684 words - 7 pages organization (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting methods and their use, budgets including discipline, construction, and elements, and variance analysis are important aspects of cost accounting as a whole, which is an important tool for a successful organization. The main goal of cost accounting is to help managers to maximize value within their organization (Lanen, Anderson, & Maher, 2011, p. 3). One of the fundamental

Accounting Framework

2287 words - 10 pages of Economics: History and Theory in tiie Analysis of Economic Reality. University of Chicago Press, Chicago. ' Sombart, W. (1916). Der Moderne Kapitalismus, München, Leipzig: Duncker and Humbolt. = Zeff, S. A. (1978). 'The rise of economic consequences', journal of Accountancy 146 (6), pp. 56-63. " Gray, R. and Hope, A. J. B. 'Power and Policy Making: The Development of an R&D Standard', (1982). Journal ofliusiness Finance ami Accounting, Vol.9

General Accounting

1538 words - 7 pages Generally Accepted Accounting Principles Deborah Gandy HCS571 June 3, 2013 Tamica Lewis Generally Accepted Accounting Principles To meet health care changes resulting from decreased reimbursement an aging population, and technology the nursing professions responsibilities morphed from the bedside to the board room. In the

Managerial Accounting

2279 words - 10 pages can Minami reap from the ABC analysis? | | |Why might Rose have suspected that the benefits of ABC would likely outweigh the costs of implementing ABC at Minami National Bank? | | |Why is it important for non-accounting managers to understand ABC

Exam Accounting

274 words - 2 pages 1._____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix. A. Budgeting analysis B. Accounting C. Futuring D. Financial planning 2.A sales forecast is _____. A. a prediction of sales under a given set of conditions B. the same as a sales budget that will generate a desired level of sales C. all of these answers are correct D. the result of decisions

Offshore Accounting

2684 words - 11 pages OFFSHORE ACCOUNTING - PROSPECT FOR BANGLADESH Introduction Global compaGlobalisation, stakeholder pressures, firm re-organisation, and changes in the political and regulatory environment present challenges and opportunities to firm finance and accounting functions to improve their value-add contributions to the business. One such opportunity is the offshore outsourcing of finance and accounting services. The business process outsourcing

Accounting Portpolio

2686 words - 11 pages MHC601 Accounting & Finance for Managers Portfolio 1 Submitted to: Dr. Zelko Livaic Blue Mountains International Hotel Management School, Sydney, NSW Submitted By: Rajkumar Shrestha Student Number: 201414094 Due Date: 14th November, 2014 05:00 pm Submission Date: 14th November, 2014 Individual Assessment Cover Sheet / Plagiarism Declaration Form This form must be completed and included with each assessment you

Related Essays

Managerial Accounting Incremental Analysis

257 words - 2 pages income is EBIT] b) What is the turnover? Turnover = Sales/Average Operating Assets c) What is the division’s ROI? (Net Operating Income/Sales) X (Sales/Average Operating Assets) d) What is the division’s residual income? Net Operating Income – (Average Operating Assets X Minimum required Rate of Return) 3. (Incremental Product Analysis) Tjelmeland Corporation is considering dropping product S85U. Data from the company's accounting

Accounting Essay 1359 Words

1359 words - 6 pages The development of financial accounting As we all known, the system of financial accounting is getting more and more perfect because of the emergency of a great amount of the financial transaction . Generally speaking, the developed speriod of accounting can divide three parts:Ancient Accounting, Contemporary Accounting and Morden Accounting. Accounting gets a better growth with the development of the world and science and

Accounting Essay 9328 Words

9328 words - 38 pages International Financial Reporting Standards to United States’ generally accepted accounting principles. Your job is to examine these financial statements, explore any differences noted between each of the financial statements and U.S. GAAP, and highlight some issues to be included in a financial analysis of China Eastern Airlines for possible inclusion in an investment portfolio. W INTRODUCTION alt Gregory is a junior portfolio analyst at Chartgood

Accounting Essay 614 Words

614 words - 3 pages date. These types of entries are usually reversed by the next month. EXAMPLE Salaries 23,000 Salaries payable 23,000 In a computerized accounting system these entries are usually done at the end of the closing period, monthly a thorough analysis is performed on the trial balance. This performance is done month to month to ensure that all accounts are correct. When an adjusting entry identified, a journal entry input form is