Masters of Business for Core Financial Statement- MyAssignmenthelp.com

Question: Discuss about theMasters of Business for Core Financial Statement. Answer: Objectives of the Rport The objectives of the report are to provide shareholders the accounting information which has significant impact on the behavior of the investors through the share prices or returns that are changes in share price. Besides this, it shows the process of controlling the effects of other factors at the time of trying to measure the casual relationships. The market movement must be managed to see the actual effect of a firms profit announcement based on the share price of the firm. To promote initiatives, inquisitiveness plus the development of core financial statement analytic skills research company specific factors behind the financial performance being announced by the company (Ansoff, 2014). The report is on Virgin Australia Holding Ltd. and its competitor Qantas Airways and Regional Express Ltd Airways. Hence, it will compare the accounting information provided in the financial reports of these companies as well as from the announcement of the companies. To analysis the financial d ata the share price and the returns are important. The return changes in the prices of the shares and these particular data provide adequate information to the investors about the performances of their share on the Australian Stock Exchange (ASX) so that help in taking effective investment decisions to the investors. Overview of the Major Industry, Competitors, and Company The aviation industry in Australia is establishing rapid growth and development in last few years. There are numerous airlines companies operating in this country and there are flights available for all across the globe. The aviation industry is growing in this country for various reasons such geographical cause, political, as well as economic reasons. Because of the country is an island the airways are the ways for communicating with the rest of the world. Besides the economy of this country is growing, this is also significant cause of the growth of the aviation industry in this country. As the industry is growing there are several airlines companies are operating in this country that increase the competition in this industry inevitably. In this situation, the aviation industry of this country become very competitive. The Virgin Australia Airlines Pty Ltd is the second largest airlines in Australia after Qantas Airways. Besides this, it is considered as the biggest airlines by the fleet size in order to usage the brand name of Virgin. British Business Tycoon Richard Branson is the founder and partner of this airline company. the company has significant amount of market share in the Australian Aviation industry. In the year of 2015 the Virgin Australia cargo was launched and throughput the years the company has grown substantially. Qantas Airways Limited is situated in Australia which is showing the largest airlines in the Sydney. It is consisting of the 65% of the market share with constituting of the 18% of the traveling in and out of the Australia through them. It started its business with the help of the domestic flights and later on the establishment of the international flights are made available for the customers. The overall stake of the company is depicted to be 55% and also is showing the loosing of the low-cost competitors from the market (Appannaiah, Narayana Reddy, and Ramanath, 2009). This can be easily presented in the form of the review which is being presented for the industry Qantas industry. As per the industry, analysis is being undertaken, the Qantas is depicted to be constituted of the appropriate management of the work by showing the expansion of the market and also the customer can be easily able to take the tough decisions in the form of the managements (Berk and DeMarzo, 2012). The Rex or the Regional express limited Airways is depicted to be a regional airline with market leading returns. It consists of the huge amount of the growth opportunities and also the support is being made by showing the explanation if the revenue growth has been seen to be growth. The overall industry analysis of the company is showing the driving of the rerating process is taken for the study (Higgins, 2016). The initiation of the limiting process is being undertaken. The explanations provided by showing the appropriate rerating of the proven business model which is being dependent on the type of the business. Therefore, the study is simply showing the appropriate NPAT model which is depicted to be declined for Regional Express limited Airways of about 5.6% and the Qantas is depicted to be showing the decrement of 88%. Therefore, the analysis simply presents that though the Qantas is depicted to be consisting of is declining and also the upliftment of the Regional Express limited Airways. It simply describes the implementation of the appropriate systems which is essential for the construction of the appropriate image in the environmentally (Hitt, Ireland and Hoskisson, 2017). Overview of the Announcement and Expected Impact According to the announcement or media release of Virgin the company grows considerably. The Virgin Australia Domestics underlying EBIT improves about 45.8% on the Financial Year of 2015. Its key financial matrix also shows significant growth as well its profitability ratio is also improved. Alternatively, the Virgin Australia International is also accomplish 30% growth in underlying EBIT and improve the profitability by ending of the financial year 2017. The Tigerair Australia also discover profits for the first year. The income is increased 37.4% plus the membership growth attained 20% on Financial year 2015. The Groups underlying EBIT is recorded AUD$ 210.6 million grows AUD$ 144.7 million on Financial year 2015. It underlying profit before tax is $ 41.0 million. Group income is recorded $ 5,021.0 million, it shows 5.7% growth. These records indicates the sound financial health of the company According to the media release of the Qantas Airways, the company has accomplished significant growth in the year of 2016. The announcement shows that 57% has increased the company's underlying profit before the tax calculation and which is $1.53 billion. Besides this, the statutory profit before tax calculation has also been increased by 80%, which is huge and the company's statutory profits are $1.42 billion. The company's per share rate nearly doubling in this period, 49c which is more than 24c from the last years. The return of investment capital is 23% up to 6.5 points more from the previous years when in June the rate was 16% (Jeyarathmm, 2008). Operating cash flow is $2.8billion, which also up by 38% from the previous year. Apart from this, it is also observed that the net free cash flow of the company is $1.7 billion which also shows that financial capacity of the company. Apart from this, it claims that the company provides shareholders return $500 million. Moreover, it also claims that the company paid fully franked 7c/share ordinary dividend plush on-market share buyback. These indicate that the company was performing well during the financial years of 2016. Apart from all these, it is also evident that the Qantas Airways provide it, shareholders, additional cash bonus totaling $7.5 million for its 25,000 non-executive employees. These also imply the sound financial health of the company (Palepu, Healy and Peek, 2016). According to the Appendix 4G for the year ended 30 June, 2016 of Regional Express, the passenger revenues of the groups has been increased from the prior years. Last year in 2015 it was $210.3million, and in 2016 it is $227.2 million. The fuel cost of the company has been decreased from the last year means the profitability of the company has been increased. The fuel cost was last year was $36.9 million, whereas, in 2016, it was $35.2 million only. However, the other cost and expenses of the company have been increased. The finance income of the company is also increased from $0.3 million last to current year's $0.5 million (Subramanyam, 2014). The operational profit before taxation is calculated as $4.3, which lower than the past years means the companys performance is decreasing. However, the total profits of the firm are increasing $10.7 million in current years in comparison to the last years $9.3 million. From the comparison it is evident the Qantas Airways is more stable compan y, and thus investment should be done in Qantas Airways (Holton, 2012). Discussion and Analysis of the Actual Stock Market Reaction and Calculation of Residuals The announcement shows the financial performance of the companies. At the date of the announcement, the share price of Virgin airlines was lower than the Qantas Airways but higher than Regional express limited Airways. The announcement revealed the financial performance of the companies. The financial result shows decrease in the performance of Virgin Airlines with negative profit margin. The income statement shows loss incurred by the company Virgin Airlines. At the date of the announcement, the share price of Qantas Airways was higher than the Virgin airlines and Regional express limited Airways. It shows that the Qantas Airways is generating profits and Virgin Airlines and Regional Express limited Airways is suffering from losses. The announcement of Qantas Airways, Virgin Airlines and Regional Express limited Airways depicted profit, revenue, earnings per share, operating cash flows and returns on the invested capital (Doole, 2016). The announcement shows decrease in the profit m argin of Virgin Airlines in the year 2016. The announcement of Qantas Airways shows that profit margin has increased in the year 2016 in comparison to the previous year. The announcement of Regional Express limited Airways shows that the profit has decreased in the year 2016 in comparison to last year (Terpstra, Sarathy and Foley, 2012). The announcement shows the performance of the companies in the market. The share price of Virgin Airlines is lower than the Qantas Airways and higher than Regional express limited Airways. The announcement is made to provide significant information to the stakeholders. On 26 Aug 2016, the residual value of Virgin Airlines was 0.43%, Qantas Airlines was 0.13% and Regional express limited Airways was -3.4%. The result shows that the share price performance of Virgin Airlines is better than the Qantas Airlines and Regional express limited Airways. Figure: Residual value The residual value shows the performance of the company during a period of time. The graph show that the performance of Virgin airlines has increased in the initial period and again it has decreased. The performance of Qantas airlines has increased initially and it has decreased slightly in later period. The performance of Regional express limited Airways has decreased over the period. Conclusion The overall analysis clearly explains the appropriate structure of the study which is enabled of defining the appropriate management of the work processes. The explanation of the work is being made by showing the explanation of the work. This also explains the overview of the explanation of the competitors and the industry with showing the overview of the assessments. This simply defines the discussion, and the analysis of the actual stock market reactions and also the residual calculations are presented by showing the appropriate explanation of the work as it is being presented in this study (Rosen, 2005). The examination of the financial announcement of the airline companies shows that Qantas is leading in the industry and Virgin is providing competition to Qantas with its rapid development within this industry. The discussion is also surrounding the appropriate framework of the study which is also showing the downturn of the REX as it is analysed in this study. This is the overall discussion, and the conclusion which is being provided as per the context is being undertaken for the study. References Ansoff, H. (2014).Strategic management. [Place of publication not identified]: Palgrave Macmillan. Appannaiah, H., Narayana Reddy, P. and Ramanath, H. (2009).Strategic management. Mumbai [India]: Himalaya Pub. House. Berk, J. and DeMarzo, P. (2012).Corporate finance. London: McGraw-Hill Education - Europe. Doole, I. (2016).International Marketing Strategy. Cengage Learning. Higgins, R. (2016).Analysis for financial management. London: McGraw-Hill Education - Europe. Hitt, M., Ireland, R. and Hoskisson, R. (2017).Strategic management. Boston, MA: Cengage Learning. Holton, R. (2012).Global finance. Abingdon, Oxon: Routledge. Jeyarathmm, M. (2008).Strategic Management. New Delhi: Himalaya Pub. House. Palepu, K., Healy, P. and Peek, E. (2016).Business analysis and valuation. Andover, Hampshire, United Kingdom: Cengage Learning EMEA. Rosen, H. (2005).Public finance. Boston, Mass. [u.a.]: McGraw-Hill. Subramanyam, K. (2014).Financial statement analysis. New York: McGraw-Hill Education. Terpstra, V., Sarathy, R. and Foley, J. (2012).International marketing. 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