ratio annlysis
30 June
2011 (m)
2012 (m)
2013 (m)
Sale
14894
15724
15902
Operating Income
1893
1649
1822
Operating
Simple comparison
Currency in millions of Australian dollars the total revenue in 2013 is $15,902.00 compared with $15724.00 in 2012, followed by $14613.00 in 2011. Qantas seen a relatively flat in the revenue.
Gross profit in 2013 is $4315.0 with $4181.0 in 2012, followed by $3939.0 in 2011.
Net income in the consecutive three years are 5, -245, 250. There is an dramatic fluctuation appeared.
Ratio analysis
Year/ratio
2011
2012
2013
Industry average
Current ratio
0.90
0.77
0.82
Quick ratio
0.78
0.65
0.70
Gross profit ratio
55.6
51.7
54.6
Receivable turnover ratio
13.59
13.95
12.49
Inventory turnover ratio
18.45
19.25
19.51
Net profit ratio
1.74
-1.64
0.03
Debt to equity ratio
0.89
0.92
0.88
Asset turnover ratio
0.70
0.71
0.77
Current ratio is always larger than quick ratio, it may because that inventory is overstated. Inventory turnover ratio has a relatively slight rise , it also can be an indicator for the overstated inventory.
As per the current ratio, overstating inventory allows qantas to avoid booking expenses and reduces the cost of goods sold. It could also indicate obsolete stock problems.
Ratio
Explanation
Account
Key assertion
Explanation
Current ratio
The change in current ratio compared with the previous year, supports the idea that inventory could be overstated. As a decrease in inventory lead to a decrease in gross margin, the auditor would be concerned that inventory is overstated.
Inventory
Existence
Overstating inventory allows qantas to avoid booking an expense now and also creates a larger asset base.by overstating inventory. Management can reduce the cost of good sale. In order to overstate inventory, management may book sales for inventory that does not exist or misallocate costs .
Days in
2011 (m)
2012 (m)
2013 (m)
Sale
14894
15724
15902
Operating Income
1893
1649
1822
Operating
Simple comparison
Currency in millions of Australian dollars the total revenue in 2013 is $15,902.00 compared with $15724.00 in 2012, followed by $14613.00 in 2011. Qantas seen a relatively flat in the revenue.
Gross profit in 2013 is $4315.0 with $4181.0 in 2012, followed by $3939.0 in 2011.
Net income in the consecutive three years are 5, -245, 250. There is an dramatic fluctuation appeared.
Ratio analysis
Year/ratio
2011
2012
2013
Industry average
Current ratio
0.90
0.77
0.82
Quick ratio
0.78
0.65
0.70
Gross profit ratio
55.6
51.7
54.6
Receivable turnover ratio
13.59
13.95
12.49
Inventory turnover ratio
18.45
19.25
19.51
Net profit ratio
1.74
-1.64
0.03
Debt to equity ratio
0.89
0.92
0.88
Asset turnover ratio
0.70
0.71
0.77
Current ratio is always larger than quick ratio, it may because that inventory is overstated. Inventory turnover ratio has a relatively slight rise , it also can be an indicator for the overstated inventory.
As per the current ratio, overstating inventory allows qantas to avoid booking expenses and reduces the cost of goods sold. It could also indicate obsolete stock problems.
Ratio
Explanation
Account
Key assertion
Explanation
Current ratio
The change in current ratio compared with the previous year, supports the idea that inventory could be overstated. As a decrease in inventory lead to a decrease in gross margin, the auditor would be concerned that inventory is overstated.
Inventory
Existence
Overstating inventory allows qantas to avoid booking an expense now and also creates a larger asset base.by overstating inventory. Management can reduce the cost of good sale. In order to overstate inventory, management may book sales for inventory that does not exist or misallocate costs .
Days in