Qantas’ financial performance has been very successful in recent years with the business recovering strongly from GFC and a large decrease in revenue to ear 377 million in 2010. The effective financial performance has been the result of effective profitability, liquidity, efficiency, return on capital, good solvency and growth including the establishment of a new airline (jet star). Financial management of Qantas
The financial management of Qantas refers to the proper management of capital and funds in order to achieve the goals of the business. The financial management of Qantas has been very successful as it is one of the few profitable airlines in the world that does not receive government assistance. The airline industry in which Qantas operates in is highly competitive and dynamic industry which is characterised by fluctuating sales, a high margin of expenses. Evidence to Qantas’ effective management could be there net profit of 2008 being 1.3 billion, their ability to respond to unavoidable decreases in revenue like the Global financial crisis, terrorist attacks, rise in fuel prices etc also shows there flexibility and adversibility in effectively keeping the profit levels at above 100 million. Qantas’ management is focused on maximising return to shareholder (dividends) since they were privatised in 1995 Profitability
Profitability refers to the revenue left over after expenses have been payed; Qantas’ in relation to this have been very successful. Although many external factors have led to fluctuations: * Increase of %30 in 2008
* decrease of %87 in 2009
* Increase of %300 in 2010
Qantas’ has managed to keep there profitability to a maximum through their use of revenue controls and cost controls. Cost controls refers to ways in which a business can control and work to reduce costs, strategies related to cost controls are could be: * Bulk buying
* Reducing fixed business costs ( salaries, rent,...