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Table of Contents
 1.0 Introduction ………………………………………………1
 2.0 Findings …………………………………………………2-6
◆ 2.1 Profitability Ratios…………………………………2
◆ 2.2 Activity Ratios………………………………………3
◆ 2.3 Liquidity Ratios………………………………………4
◆ 2.4 Gearing Ratios………………………………………4
◆ 2.5 Shareholder Ratios…………………………………5
 3.0 Conclusion…………………………………………………6
 4.0 Bibliography ………………………………………………8
 5.0 Appendix ………………………………………………9-13
◆ 5.1 Easyjet and British Airways ratio calculation………………………………………9
◆ 5.2 Profit & Loss Account and Balance Sheet for Easyjet………………………………………10-11
◆ 5.3 Profit & Loss Account and Balance Sheet for British Airways……………………………12-13






 1.0 Introduction
British Airways (BA) and Easyjet are two British airline companies. They are competitors in many aspects with different operational techniques. Easyjet is Europe’s leading low-cost airline, which targets at both leisure and business markets on a range of European routes. It is one of Europe’s largest Internet retailers with ticketless travel service. In addition, it offers a simple, ‘no frills’ service. On the other hand, British Airways is the world’s biggest international airline whose worldwide route network covers 150 countries. Its customers can get the world’s best personalized service. The purpose of this report is to compare and contract the financial performance by analyzing ratios.

 2.0 Findings
◆ 2.1 Profitability Ratios
Return on capital employed (ROCE), gross profit margin and net profit margin ratios are used to tell owners, managers, employees and potential investors the profitability of the two companies. According to the calculation in the appendix, the ROCE for Easyjet is 7.50%, which has a better performance than that of...