Bao1101 Accounting for Decision Making Proof Reading Services

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Bao1101 Accounting for Decision Making Proof Reading Services

Part 2

Qantas Group

Products and Services

The airline brand of Qantas work locally, internationally and regionally services, the diversified portfolio of Group of subsidiary based business such as Qantas Freight Enterprises and Qantas Frequent Flyer and so on (Qantas, 2018).

Chief Executive Officer

The Chief Executive Office of theQantas which is an airline company based in Australia is Alan Joyce (Qantas, 2018).

Salary of Chief Executive Officer

The CEO of the Qantas has the pat structure of A$25m, CEO which is Alan Joyce is stated as the highest paid executive of airline throughout the world twice the annual structure to A$24.5m, subsequent to the turnaround at the airline of Australia.

Profit / Loss after Tax from 2017

In the year 2017, the profit after tax of the Group was $853m (Annual Report of Qantas, 2017).

Latest Dividend Paid – Dividend Per Share and Date Paid

 

Qantas Group

Dividend

0.22

Date

September 12, 2018

Total Assets – from 2017

In the year 2017, the total assets of the Qantas Airways were 18,026.

Number Of Employees

The Qantas Airways Limited in the year has employed 29596 employees with Australia inclusive of the employees from each and every subsidiary under the supervision of company (Qantas, 2017).

Seek Limited

Products and Services

The Seek Limited suits the jobseekers and recruits with better future and career-related scope and associated online services. It also offers and distributes vocational based training and development with the best educational courses available. In addition, it also provides advertisement services as well as online based employment (Annual Reports.com, 2018). The products and service of the company are inclusive of TalentSearch, recommendations and Talent Search, alongside the service including employment and job Finder Company, integrated with the top-notch and renowned brands.

Chief Executive Officer

The Co-founder as well the Chief Executive Officer of the Seek Limited is Andrew Reuven Bassat (Seek, 2018).

Salary of Chief Executive Officer

The CEO of the Seek Limited have earns salary of AU$175,463 on a yearly basis approximately.

Profit / Loss after Tax from 2017

During the year the net profit after tax was $ 362.0m.

Latest Dividend Paid – Dividend per Share and Date Paid

(Source: Yahoo Finance, 2018)

 

Qantas Group

Dividend

0.1

Date

September 5, 2018

Total Assets – from 2017

As on June 2017, the Seek Limited possessed the total assets of $3,683.0m wherein the 73% belonged to long-life intangible assets (Annual Report of Seek Limited, 2017).

Number of Employees

The listing of Seek limited is done on the Australian Securities Exchange, wherein it is considered one of the 100 companies, having employees of more than 6000.

Share price at the end of trading on Monday 13 August 2018

(Source: Yahoo Finance, 2018)

Date

Open

High

Low

Close

Adj Close

Volume

Qantas Ltd

13-08-18

6.64

6.71

6.585

6.61

6.506232

2326112

Seek Ltd

13-08-18

20.37

20.51

20.07

20.14

19.93411

574503

Date

The closing price of Qantas ($)

The closing price of Seek Ltd ($)

13-08-18

6.61

20.14

14-08-18

6.6

20.65

15-08-18

6.61

21.29

16-08-18

6.74

21.97

17-08-18

6.62

22.31

20-08-18

6.76

22.06

21-08-18

6.83

21.93

22-08-18

6.72

21.88

23-08-18

6.53

21.33

24-08-18

6.35

21.63

27-08-18

6.39

21.96

28-08-18

6.45

22.17

29-08-18

6.57

21.88

30-08-18

6.44

22.37

31-08-18

6.43

22.40

03-09-18

6.42

22.68

04-09-18

6.37

22.52

05-09-18

6.25

22.21

06-09-18

6.15

21.51

07-09-18

6.19

21.29

Date

The closing price of All ordinary index

13-08-18

6341.3

14-08-18

6386.2

15-08-18

6415.7

16-08-18

6412.6

17-08-18

6426.2

20-08-18

6435.1

21-08-18

6383

22-08-18

6373.8

23-08-18

6360.3

24-08-18

6357.9

27-08-18

6381.1

28-08-18

6413.6

29-08-18

6457

30-08-18

6460.5

31-08-18

6427.8

03-09-18

6416.5

04-09-18

6398.9

05-09-18

6339.2

06-09-18

6267.8

07-09-18

6252.3

Date

Movements of Qantas stock

Movement of All ordinary index

Movements of Seek stock

13-08-18

0

0

0

14-08-18

-0.01

44.90039

0.510001

15-08-18

0.01

29.5

0.640001

16-08-18

0.13

-3.1001

0.679998

17-08-18

-0.12

13.6001

0.34

20-08-18

0.14

8.899903

-0.25

21-08-18

0.07

-52.1001

-0.13

22-08-18

-0.11

-9.2002

-0.05

23-08-18

-0.19

-13.5

-0.55

24-08-18

-0.18

-2.3999

0.299999

27-08-18

0.04

23.2002

0.33

28-08-18

0.06

32.5

0.210001

29-08-18

0.12

43.3999

-0.29

30-08-18

-0.13

3.5

0.490002

31-08-18

-0.01

-32.7002

0.029999

03-09-18

-0.01

-11.2998

0.28

04-09-18

-0.05

-17.6001

-0.16

05-09-18

-0.12

-59.6997

-0.31

06-09-18

-0.1

-71.4004

-0.7

07-09-18

0.04

-15.5

-0.22

Share Performance of Qantas Ltd

The Qantas Airways Limited share price is positioned at the 52-week increased, irrespective of the fact that the company is providing no news in the market presently (James, 2018). The lift in share price back to the various upgrades in brokers comprising from Goldman Sachs lately to a ‘buy’. However, in comparison to a market index, there is a contradictory trend but due to the lower beta performance of the company is overall good and it is expected that the price of the company will be increased in the near future.

Share performance of Seek Ltd

The Seek Limited shares have forced increasing trend today and have arrived at high of very first time at $21.34. Further, these current earnings state that the shares of Seek have shown a tremendous rise of 30% seeing as this time last year (Motley Fool Staff, 2017). The company is performing far better than the market index as despite reduction in the index there is an increase in share price or less decline in price.

 

Qantas Ltd

Seek Ltd

Total

Initial amount of investment

$5,000

$5,000

$10,000

Opening value of a share

$6.61

20.14

 

No of share purchased (A/B)

756

248

 

Closing value of share

$6.19

$21.29

 

Value of investment

$4,682

$5,286

$9,968

Gain or loss

($318)

$286

($32)

Recommendations

Company

Recommendation

Justification

Qantas Ltd

Buy

The share price of the company is declining, but the overall performance of the company is strengthening thus it is expected that there will be a hike in the long term in share prices of the company.

Seek Ltd

Sell

The company is performing far better than the market index as despite reduction in the index there is an increase in share price or less decline in price which shows it is right time to sell the profits of the company to realise the gain.

Part 3 

 

Qantas

Seek limited

Revenue / Sales

16,057

1230.5

Interest Expense

(189)

(29.3)

EBIT

1,590

449.1

Net Profit Before Tax

1,181

437.3

Net Profit After Tax

853

362.0

Inventory

  

Current Assets

3,119

841.9

Total Assets

6,355.8

3,683.0

Current Liabilities

7,095

550.0

Total Liabilities

13,681

1,643.1

Total Equity

3,540

2,039.9

Liquidity ratios

Formula

Qantas

Seek

Current assets

 

3,119

841.9

Current liabilities

 

7,095

550

Stock

 

351

0

Current ratio

current assets/ current liabilities

0.44

1.53

Quick ratio

current assets-stock/ current liabilities

0.39

1.53

 

 

 

 

Profitability ratios

Formula

Qantas

Seek

Sales

 

16,057

1230.5

Operating profit

 

1,590

449.1

Net profit

 

853

362

Operating profit ratio

operating profit/ sales *100

10%

36%

Net profit ratio

net profit /sales *100

5%

29%

 

 

 

 

Solvency ratio

Formula

Qantas

Seek

Debt

 

13,681

1,643.10

Equity

 

3,540

2,039.90

Total assets

 

6,355.80

3,683.00

Debt to equity ratio

Debt / equity

3.86

0.81

Equity ratio

Equity / total assets

0.56

0.55

Qantas Group

Profitability ratio

The profitability of the firm shows moderate performance, as compared to the profits of Seek Limited. However, the company has still scope of improvement so as to ensure a reasonable flow of operations and working capital with better profitability.

Solvency ratio

In terms of solvency ratio, the Qantas Group is performing well; the company has effectively managed both liability and assets, it has optimum utilized its total assets, while paid off the liabilities, reflecting the optimal management of working capital.

Liquidity ratio

It can be said that the liquidity ratio the company is not matching the ideal ratio and required to be ideal in terms of the current ratio than 1:5, as because the company’s current ratio is showing minus trend.

Seek Limited

Profitability ratio

The liquidity ratio of the company shows that the company has given more preference towards equity and less consideration towards debt, due to this there is the non-effective management of total assets. However, the company is required to stabilize the structure and make improvement in such areas. As, the company’s profits are increasing over time, so it is crucial for them to drive its ability to pay off its current liability by using its current asset

Solvency ratio

By considering the above table, it can be stated that company has improved its sales and revenues, and generated more profitability, overall, the company is performing good in the market, and is likely to perform much better in future times by focusing more on improvement areas.

Liquidity ratio

The Seek limited has delivered excellent performance in terms of liquidity; the current ratio that is 1.53 is matching the ideal criteria.A good increase in the performance of the company has been noticed, reflecting the effective management of business operations and activities Stability ratio.

By considering the analysis it can be said that performance of Seek Ltd is comparatively better as they are having profitability and liquidity ratios. Therefore Seek Ltd is better option for investment.

References

1. Annual Report of Qantas, 2017. (pdf). Available from<http://investor.qantas.com/FormBuilder/_Resource/_module/do
LLG5ufYkCyEPjF1tpgyw/file/annual-reports/2017AnnualReport.pdf >. [Accessed on 25 September 2018].
2. Annual Report of Seek Limited, 2017. (pdf). Available from < http://www.annualreports.com/HostedData/
AnnualReports/PDF/ASX_SEK_2017.pdf>.[Accessed on 25 September 2018].
3. Annual Reports.com, 2018. SEEK Limited (Online). Available from < ttp://www.annualreports.com/Company/SEEK-Limited>. [Accessed on 25 September 2018].
4. James, M, 2018. The SEEK Limited (ASX:SEK) share price just hit an all-time high: Too late to invest? (Online).  Available from < https://www.fool.com.au/2018/06/12/the-seek-limited-asxsek-share-price-just-hit-an-all-time-high-too-late-to-invest/>. [Accessed on 25 September 2018].
5. Motley Fool Staff, 2017. Why the Qantas Airways Limited share price can’t stop climbing (Online).  Available from < https://www.fool.com.au/2017/10/06/why-the-qantas-airways-limited-share-price-cant-stop-climbing/>. [Accessed on 25 September 2018].
6. 
Qantas, 2017. QANTAS GROUP FULL YEAR 2017 FINANCIAL RESULT (Online). Available from < https://www.qantasnewsroom.com.au/media-releases/qantas-group-full-year-2017-financial-result/>. [Accessed on 25 September 2018].
7. 
Yahoo Finance, 2018. Qantas Airways Limited (QAN.AX) (Online). Available from < https://in.finance.yahoo.com
/quote/QAN.AX/history?period1=1534098600&period2=1536258600&interval=div%7Csplit&filter
8. 
Yahoo Finance, 2018. SEEK Limited (SEK.AX) (Online). Available from < https://finance.yahoo.com/quote/
SEK.AX/history?period1=1506327965&period2=1537863965&interval=div%7Csplit&filter=div&frequency=1d>. [Accessed on 25 September 2018].
9. 
Qantas, 2018. Our Company (Online). Available from < https://www.qantas.com/travel/airlines/company/global/en>. [Accessed on 25 September 2018].
10. 
Seek, 2018. SEEK Executives (Online). Available from < https://www.seek.com.au/about/executives/>. [Accessed on 25 September 2018].
11.
Qantas, 2018. Our leadership (Online). Available from < https://www.qantas.com/in/en/qantas-group/acting-responsibly/our-leadership.html>. [Accessed on 25 September 2018].