In: Finance
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)
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)
Financial analysis of competitors – REX American Resources Corporation
Financial Analysis of second competitor: Virgin Australia
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