The financial data of the three companies:
In order to find out which is the best company for MJS Charities to invest, I will focus on the turnover, operating profit and profit margin of each company.
From the table above, it shows that Ryanair Holdings Plc has the best financial performance when compared to Monsoon Plc and Instore Plc.
It has the highest latest turnover, operating profit and profit margin.
Therefore, I will recommend MJS Charities to invest a £300000 donation in Ryanair Holdings Plc. The main reason that I choose this company is it shows that it has made sustained improvements over a number of years in their financial performance from its financial data.
Ryanair Holdings Plc Financial Information
From the above table, it shows that the turnover from year 4 to year 3 has increased from £302m to £382.3m; it has increased by £ 80.3m. From year 3 to year 2, it has increased from £382.3m to £581.1m, increased by £198.8m. From year 2 to year 1, it has increased from £581.1m to £715.8m, increased by £143.7m. And from year 1 to the latest, it has increased from £715.8m to £920.4m, increased by £204.6m.
Overall, the turnover from year 4 ago to the latest has boomed by £618.4m which means it has increased 204.8%. The growth peak is from year 1 to latest, it has increased by £204.6m.
The operating profit from year 4 to year 3 has decreased from £70.6m to £-18.7m, declined by £89.3m. From year 3 to year 2, it has increased rapidly from £-18.7m to £181.7m, boomed by £200.4m. From year 2 to year 1, it has slightly decreased from £181.7m to 165.9m, decreased by £15.8m. However, from year 1 to the latest, it has growth from £165.9m to £225.4m, increased by £59.9m.
Although it has suffered from the declined in year 3 and year 1, it has increased by £154.5m (219.3%) from year 4 to the latest.
The peaks of the profit margin are in year 2 and year 3 which has 31.40% and 27.62%. Although the overall has declined by 3.18%, it has steady profit margin from year 4 to the latest which between 22% - 32%.
It is a good opportunity for MJS Charities to invest to the Ryanair Holdings Plc. Not only the good financial performance over the past few years, but also the expanding of the company.
- As Ryanair, Europe’s biggest no-frills airline, has bought 10 more Boeing jets. It takes to delivery of Boeing 737-800s in 2008; £380m deal is part of planned expansion to fly even more routes to new destinations. Ryanair’s no fuel surcharge guarantee is widening gap between low fares and higher prices of fuel surcharging competitors. It driving demand and attracting millions of additional customers to Ryanair.
- Ryanair is adding 10 new routes from Nottingham East Midlands Airport, creating 150 jobs. From February 2007, passengers will be able to fly to three new destinations in Spain, two in Italy, Poland, Slovakia, Sardinia, Scotland and Ireland.
- Ryanair is extending its operation at Liverpool's John Lennon Airport with 11 new destinations. Routes to Santiago, Inverness, Wroclaw, Aberdeen, Kaunas and Ancona. A further five routes - Poznan, Krakow, Tampere, Alghero and Santander.
The expansion of the company indicates that the Ryanair Holdings Plc will increase their profit and make sustained improvements in the next years.
