1. Ratio Analysis
2009 - 2013
source logos: http://logos.wikia.com/wiki/EasyJet
http://commons.wikimedia.org/wiki/File:White_plane_icon.svg
Florence Schwiete - ID: 1415354
Rakib Hossain - ID: 1247475
Jonas Huether - ID: 1415339
Nirav Patel - ID: 1230775

2. • 1995: founded by Stelios Haji-Ioannou
• Headquarter “easyland” in London Luton
• Only flights from Luton - Glasgow and Edinburgh (29£)
• 1996: easyJet goes international

3. source: http://corporate.easyjet.com/about-easyjet/our-network.aspx?sc_lang=en
over
• 30 countries
• 600 routes
• 200 Airbus Aircraft
• 8000 people employed
• 60 million passengers

4. Ratio Analysis
Profitability ratio
Efficiency ratio
Current, solvency, liquidity and gearing ratio
Investor ratio
Weaknesses and Limitations
Recommondations

5. Profitabilty ratio
2010: volcanic ash disruption total cost and loss  £57 million2013: easyJet has introduced allocated seating

6. Profit before tax per seat (in £)

7. Efficiency ratio

8. Efficiency ratio

9. Efficiency ratio

10. Efficiency ratio

12. Solvency ratio

13. Solvency ratio

15. Investor ratio

16. Investor ratio

17. Investor ratio

18. Investor ratio

19. • Exclusion of inflation rates
• depreciation of equipment and machinery can affect profits
• short time cuts of expenses can improve profitability but
have negative effects on long-term performance
• ratios use historic data and information can be outdated by the
time the ratios are calculated
• Investor Relations are more effective
Weaknesses and limitations

20. Recommondations

21. Recommondations
Problem: high fuel costs
• invest in fuel saving, lighter aircrafts
• average age of airplanes: 4.5 years
• technology investments (2013): £7 billion
• expand the use of polymer paint
• reduces fuel consumption by 1-2%
• increase the market share in the key-market: Europe
• maintain customer satisfaction: on-time performance 86%
(2013)
• expand e-commerce: 85% of sales through the website
(2013)

22. EasyJet, 2009. Easyjet annual report [PDF]. Available at:<
http://2009annualreport.easyjet.com/files/pdf/easyJet_AR09.pdf>
[Accessed on 16th of November 2014].
EasyJet, 2010. Easyjet annual report [PDF]. Available at:<
http://2010annualreport.easyjet.com/files/pdf/Full_Report_easyJet_AR10.pdf
> [Accessed on 16th of November 2014].
EasyJet, 2014. Easyjet annual report . [PDF]. Available at:<
http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/investors/result-center-
investor/annual-report-2013.pdf> [Accessed on 16th of November 2014].
Fame, 2014. EasyJet Plc. [Online]. Available at:< https://fame2.bvdep.com/version-
2014108/Report.serv?_CID=108&context=25HH97OW95F4BS9 > [Accessed on 14th
of November 2014]
Fame, 2014. Ryanair Holdings Public Limited Company. [Online]. Available at:<
https://fame2.bvdep.com/version-
2014108/Report.serv?_CID=87&context=9E5797OW9F1P382&SeqNr=0> [Accessed
on 14th of November 2014]
Morning star,2014. Easyjet Plc.[online] Available at:-
<http://financials.morningstar.com/ratios/r.html?t=ESYJY>[Accessed on 9th November
2014]
MSM Media Ltd, 2014: Reach for the skies. [Online] Available at: <
http://www.sharesmagazine.co.uk/articles/feature-airlines#.VGYOhd7GxSU >
[Accessed on 16th of Novemeber 2014].
Ryanair, 2013. Ryanair final annual report [PDF]. Available at: <
http://www.ryanair.com/doc/investor/2013/final_annual_report_2013_130731.pdf
[Accessed on 17th of November 2014].
Sources

23. 2014. Annual report and accounts 2013 EasyJet PLC. Available through: Company
website at: <http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-
V2/pdf/investors/result-center-investor/annual-report-2013.pdf> [Accessed 14.11.2014].
2014. Annual report and accounts 2013 EasyJet PLC. Available through: company
website, EasyJet PLC at: <http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-
V2/pdf/investors/result-center-investor/annual-report-2013.pdf> [Accessed 17.11.2014].
2014. share price information EasyJet. Available through: Company website EasyJet at:
<http://corporate.easyjet.com/investors/share-price-information/share-price-
charting.aspx?sc_lang=en> [Accessed 14.11.2014].
2012. Annual report and accounts EasyJet PLC. Available through: company website
EasyJet at: <http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-
V2/pdf/investors/result-center-investor/annual-report-2011.pdf>.
Cash Flow Per Share. [on-line] Available at:
<http://www.investopedia.com/terms/c/cashflowpershare.asp> [Accessed: 17.11.2014].
Press Information Kit EasyJet PLC. [on-line] Available at:
<http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/content/dl017-press-
pack-july-2013-q3.pdf> [Accessed: 17.11.2014].
Bamber, M. and Parry, S. eds., 2014. Accounting and Finance for Managers. Kogan
Page Limited.
Bowers, S., EasyJet anger as Stelios calls for more boardroom changes. [on-line]
Available at: <http://www.theguardian.com/business/2011/sep/05/easyjet-anger-stelios-
boardroom-changes> [Accessed: 17.11.2014].
Sources

24. Meikle, J., Volcanic ash cloud: thousands face flight delays and cancellations. [on-line]
Available at: <http://www.theguardian.com/world/2011/may/24/volcanic-ash-cloud-flight-
delays-heathrow> [Accessed: 17.11.2014].
Menon, C., The Limitations of Earnings Per Share. [on-line] Available at:
<http://www.morningstar.co.uk/uk/news/105269/The-Limitations-of-Earnings-Per-
Share.aspx> [Accessed: 17.11.2014].
Milmo, D., EasyJet shares dive as fuel costs,snow and anger at baggage fees threaten to
double losses. [on-line] Available at:
<http://www.theguardian.com/business/2011/jan/20/easyjet-shares-warning-loss-
double>.
Sumberg, J., Easy Jet paint job makes fuel bills less of a drag. [on-line] Available at:
<http://www.bbc.co.uk/news/business-12428667> [Accessed: 17.11.2014].
Sources