Thursday, January 2, 2014

3 recent performance indicators - are they favourable or unfavourable for Qantas?

Net Profit:
For the full year ended June 30, 2013 Qantas reported underlying profit before tax of AUD$192 million. This is very much favourable for the business as it shows that they are making a profit from their operations, and a big one at that. It is also an improvement on the previous financial year, in which they made an underlying profit before tax of AUD$95 million.

Gross debt:
Gross debt was reduced by $1 billion throughout the year. This is a favourable result as it shows that the business is making in-roads in repaying its debt.

Net capital expenditure (expenses):
Net capital expenditure for Qantas was $1.4 billion for 2012/13 financial year. This is favourable for the business as it is a reduction of $200 million in expenditure from the previous year.

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