This presentation shows our work on the most important low fares company for the accounting, finance & control project. There are three sections: 1. financial analysis 2. benchmarking 3. conclusion

1. Baggio Michela 876690
Beretta Marco 878482
Cacciani M. Francesca 874906
Cirillo Giuseppe 878042
Cheli Filippo 876241

2. INDEX
Company’s business model
Ryanair’s financial analysis
Balance scorecard
Overview

3. 569.3
522.8
866.7
0
100
200
300
400
500
600
700
800
900
1000
2013 2014 2015
Net profit [Mln€]
OVERVIEW
>1800 FLIGHTS PER DAY

4. HOW IS THIS
POSSIBLE ?
AVERAGE PRICE: 47€

5. BUSINESS MODEL
NO
FRILLS

6. LOW FARES
SECONDARY
AIRPORTS
PROFITABILITY
LOW COSTS
11% 10%
12%
18%
21.20%
25%
11%
15% 14%
2013 2014 2015
Rayanair EasyJet British Airways
ROI
Positive increase, but less than
our competitors because
Ryanair is investing a lot to
enlarge both its fleet and its
routes.
An example is the order of 180
new B737-800 NG Boeings.
FINANCIAL ANALYSIS

7. LOW COSTS
PROFITABILITY
LOW FARES
SECONDARY
AIRPORTS
LOW FARES
13%
24%
16.30%
0%
5%
10%
15%
20%
25%
30%
cost
Rayanair EasyJet British Airways
PROFITABILITY
SECONDARY
AIRPORTS
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
21.0%
2013 2014 2015
Rayanair EasyJet British Airways
FINANCIAL ANALYSIS
ROS
"Airport and handling charges"
costs over revenues

8. LOW COSTS
PROFITABILITY
LOW FARES
SECONDARY
AIRPORTS
LOW FARES
PROFITABILITY
FINANCIAL ANALYSIS
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
0 1 2 3 4 5 6 7D/E
Costofdebt
201520142013

9. LOW COSTS
PROFITABILITY
LOW FARES
SECONDARY
AIRPORTS
LOW FARES
PROFITABILITY
FINANCIAL ANALYSIS
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
0 1 2 3 4 5 6 7D/E
Costofdebt
201520142013

10. LOW COSTS
PROFITABILITY
LOW FARES
SECONDARY
AIRPORTS
LOW FARES
PROFITABILITY
FINANCIAL ANALYSIS
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
0 1 2 3 4 5 6 7D/E
Costofdebt
201520142013

11. LOW COSTS
PROFITABILITY
LOW FARES
SECONDARY
AIRPORTS
LOW FARES
PROFITABILITY
FINANCIAL ANALYSIS
1.97
1.51
1.72
1.05
0.89
0.72
0.63
0.65
0.6
2013
2014
2015
British Airways EasyJet Ryanair
Liquidity analysis (Current ratio)

12. SALES GROWTH RATE
Significant index of company’s expansion, that shows the increase in
revenues.
Sales growth rate =
∆ 𝑺𝒂𝒍𝒆𝒔 [𝒕− 𝒕−𝟏 ]
𝑺𝒂𝒍𝒆𝒔 (𝒕−𝟏)
ADJUSTED PRICE
This indicator highlights the difference between Ryanair’s medium
price and the market’s one.
Adjusted price =
𝒓𝒚𝒂𝒏𝒂𝒊𝒓′ 𝒔 𝒂𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒓𝒊𝒄𝒆
𝒍𝒐𝒘 𝒄𝒐𝒔𝒕 𝒎𝒂𝒓𝒌𝒆𝒕′ 𝒔 𝒂𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒓𝒊𝒄𝒆
% SATISFIED CUSTOMERS
A digital survey via phone application provides customers’ opinions
on Ryanair’s service.
% Satisfied customers =
# 𝒄𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝒓𝒂𝒕𝒊𝒏𝒈 ≥𝟒
# 𝒊𝒏𝒕𝒆𝒓𝒗𝒊𝒆𝒘𝒆𝒅 𝒄𝒖𝒔𝒕𝒐𝒎𝒆𝒓𝒔
BALANCE SCORECARD

13. LOAD FACTOR
Important leverage in cost reduction strategy. Saturating airplanes helps
splitting fixed costs. New purchased airplanes provide more seats, but if well
managed they will bring more revenues.
Load factor =
𝑻𝒐𝒕𝒂𝒍 𝒆𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆 𝒑𝒂𝒔𝒔𝒆𝒏𝒈𝒆𝒓𝒔
𝑻𝒐𝒕𝒂𝒍 𝒑𝒐𝒕𝒆𝒏𝒕𝒊𝒂𝒍 𝒑𝒂𝒔𝒔𝒆𝒏𝒈𝒆𝒓𝒔
AIRPORT IMPACT
This index shows the increase in ancillary revenues from secondary airport
which properly highlights how Ryanair exploits secondary airports to
increase its prosperity.
Airport impact =
𝑨𝒏𝒄.𝒓𝒆𝒗 𝒇𝒓𝒐𝒎 𝒔𝒆𝒄𝒐𝒏𝒅𝒂𝒓𝒚 𝒂𝒊𝒓.
𝑨𝒏𝒄𝒊𝒍𝒍𝒂𝒓𝒚 𝒓𝒆𝒗𝒆𝒏𝒖𝒆𝒔
FUEL REDUCTION
New airplanes bring a reduction in fuel cost due to improvements in their
structure.
Fuel reduction=
𝑻𝒐𝒕𝒂𝒍 𝒇𝒖𝒆𝒍 𝒄𝒐𝒏𝒔𝒖𝒎𝒑𝒕𝒊𝒐𝒏 [€]
𝑻𝒐𝒕𝒂𝒍 𝒌𝒎 [𝒌𝒎]
BALANCE SCORECARDBALANCE SCORECARD

14. CONCLUSIONS
NO FRILLS is the
answer to Ryanair’s
success…
…and the reason why
you never fit in the
seats.

15. THANKS FOR YOUR
ATTENTION