investment analysis using your selected company's most recent financial statements assess the financial position and performance...

investment analysis

using your selected company's most recent financial statements assess the financial position and performance of the company using relevant ratio analysis and other method. What does your analysIs reveal? How does your company compare with its major competitors? (The selected company is Qantas in Australia, the two major competitors are REX and Virgin Australia. 400 words)

Expert Solution

Investment Analysis

Name of the company: Qantas Airways Limited

The most recent financial statement of the company reveals the below mentioned information. (Let us take last 6 months period for the evaluation)

The current market price of the share is AUD 6.35 which is upward moment upward movement from last six months (from June 2019) as shown below
Earnings per share for the last June 2018 is .56 which is on higher side compare to last year June 2017 0.46

Financial analysis of competitors – REX American Resources Corporation

Current market price USD 74.92. There is mix of upward and downward movement in last 6 month as shown below
EPS as on 30 Jan 2019 is 4.91 which is less than last EPS of 6.

Financial Analysis of second competitor: Virgin Australia

Current Market price of the share is AUD0.16 which shown downward movement from last 6 months as shown below
This is loss making company and there is no EPS last year.

Conclusion

Comparing the financial strength, revenue and EPS, we find the Qantas is the best choice among all, The financial strength also shown the future upward moment in the share price of Qantas compare to Rex. Virgin is totally to be avoided and there is no point in making investment in loss making company.

Value wise, REX shows less amount to be invested to get comparatively hig return but historical data shown that there was deep downward movement in REX.

Hence, Qantas is a risk free investment with standard return and REX is risky investment with high return

jeff jeffy answered 2 months ago

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