Sia Financial Analysis

Topics: Financial ratios, Generally Accepted Accounting Principles, Balance sheet Pages: 37 (11509 words) Published: April 17, 2011
Table of contents
Contents Page Number

Chapter one: Introduction
1.1 objective of this project
The topic has been chosen is “An analysis of the business and financial performance of an organisation over a three year period” for my Research and Analysis Project. This report is conducted to analyse of the financial situation of Singapore Airline Ltd (SIA). Financial performance is measuring the result of an organisation’s operation and policies in momentary terms, such as profit margin, return on capital employ, return on investment, etc. The financial performance provides an access for the people who were interested in the organisation about the operation and financial position, meanwhile, can help them to make appropriate decision. The primary aim of this project is apply the knowledge which has been learnt from ACCA. The objectives of this project are as follows: 1.Evaluate the financial situation of SIA in terms of financial performance which through analyse the key financial ratios. 2. The analysis of business performance and financial position will make the information easily to be understood and facilitate the decision making of the investors. 3.To gain a better understanding of SIA in its nature, identify its current and future market position through relevant data and information.

1.2 Reasons for choosing this topic

The reason why chosen this topic is:
1. Mainly to apply the skill and knowledge learnt from “the Association of Chartered Certified Accountants” (ACCA) studies in various subjects such as F7“Financial Reporting”, and F9“Financial Management”. 2. It was interesting in these areas. This research allows me to develop my application skills. 3. International transport has been considered as necessary in people’s daily life, people go overseas should consider which airline they will by. I am also a frequent passenger of SIA. 4. It also provides me a good opportunity to improve report writing, communication and presentation skills. 5. At the same time, the information of SIA is easy to obtain, we can research from internet, newspaper journals and periodicals, etc.

1.3 Background of SIA
Singapore Airlines began with the incorporation of Malayan Airlines (MAL) on 12 October 1937, by the Ocean Steamship Company of Liverpool, the Straits Steamship Company of Singapore and Imperial Airways. The airline’s first flight was a chartered flight from the British Straits Settlement of Singapore to Kuala Lumpur on 2 April 1947 using an Airspeed Consul twin-engine airplane. Regular weekly scheduled flights quickly followed from Singapore to Kuala Lumpur, Ipoh and Penang from 1 May 1947 with the same aircraft type. The airline continued to expand during the rest of the 1940s and 1950s, as other British Commonwealth airlines provided technical assistance, as well as assistance in joining IATA. By 1955, Malayan Airways’ fleet had grown to include a large number of Douglas DC-3s, and went public in 1957. When Malayan, Singapore, Sabah and Sarawak formed the Federation of Malaysia in 1963, the airline’s name was changed, from “Malayan Airways” to “Malayan Airlines”. MAS also took over Borneo Airways. In 1966, following Singapore’s separation from the federation, the airline’s name was changed again, to Malaysia-Singapore Airlines (MSA). The next year saw a rapid expansion in the airline’s fleet and route, including the purchase of MSA’s first Boeing aircraft, the Boeing 707s, as well the completion of a new high-rise headquarters in Singapore. Boeing 737s were added to the fleet soon after. From a single plane to an internationally respected brand, more than 60 years of innovation and service has propelled the growth of Singapore Airlines to become one of the world’s leading carriers with an advanced fleet. They began with three flights per week, and today our route network spans 101 destinations in 43 countries. Years ago, Singapore Airlines was the first to offer free...
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