Analysis of Ryanair Holdings Plc.

By Ben o’Connor

Cian O’Brien

Darragh Wright

Sam mcEvoy

Introduction

Ryanair

• Established in 1985• Michael O’Leary• €4.9bn Revenue 2013 • 180 airports • 29 countries • 1,611 routes • 1,500+ daily departures• 81.5m passengers p.a.

Profitability Ratios

Gross Profit Margin

2013 2012 2011

27.9% 29.1% 28.3%

In comparison to Aer Lingus N/A 20.73% 17.9%

Gross Profit = Gross Profit x 100

Revenue

NET PROFIT

2013 2012 2011

Before Tax 13.3% 14.4% 11.6%After Tax 11.7% 12.8% 10.3%In comparison to Aer Lingus

Before Tax N/A 2.9% 6.6%After Tax N/A 2.4% 5.5%

Net Profit = Net Profit before tax x100Revenue

Return on Capital Employed (ROCE)

2013 2012 2011Before Tax 10.21% 9.51% 6.86%(After Tax) 8.94% 8.41% 6.1%

In comparison, Aer Lingus recorded a ROCE (Before Tax) of 4.88% in 2012

*ROCE (Before Tax) = EBIT

Capital Employed

Growth Ratio

GROWTH IN REVENUE

2013 2012 201111.2% 21% 21.5%

In comparison to Aer Lingus

N/A 8.1% 5.9%

*Growth in Revenue = Revenue Year 1– Year 2 x100 Revenue Year 2

Liquidity Ratios

Current Ratio and Acid Test Ratio2013 2012 2011

Current Ratio 1.97:1 2.14:1 1.89:1Acid Test Ratio 1.97:1 2.14:1 1.89:1

Aer Lingus – Current Ratio 2012 (2.28:1)

*Current Ratio Current Assets Current Liabilities

*Acid Test Ratio = Current Assets – Inventory Current Liabilities

Activity Ratios

Receivable And Payable Days

2013 2012 2011

Receivable Days 4.19 Days 4.28 Days 5.09 Days

Payable Days 14.40 Days 21.24 Days 21.15 Days

Aer Lingus in 2012 Payable days was 89.68 Days

*Receivable Days Trade Receivables X 365 Credit Sales

* Payable Days = Payables X 365 Cost of Sales

Gearing Ratios

Capital Gearing

2013 2012 201153.46% 53.98%56.3%

Aer Lingus (2012) – 41.03%

Capital Gearing = Non Current LiabilitiesCapital Employed

Interest Cover

2013 2012 2011

7.23 times 6.26 times 5.2 times

In comparison to Aer Lingus’ Financial Report 2012: 4.03 times

Interest Cover = EBIT

Interest Expense

Investor Ratios

Dividend Cover and Dividend per Share

2013 2012 2011Dividend Cover 1.16 times N/A 0.75 timesDiv. Per Share 34.05 cents N/A 33.65 cents

Ryanair have only paid out a dividend twice. First in 2011, and then again in 2013.

Compared to Aer Lingus who recorded a DPS of 3 cents in 2012

* Dividend Cover = Profit After Tax – Pref Div. *DPS = Div. Paid (Ord.)

Dividend Paid (Ord. Shares) Ord. Shares

Earnings Per Share

2013 2012 2011

39.45 cents 38.03 cents 25.21 cents

Aer Lingus recorded EPS at 6.4 cents in 2012

EPS = Net Profit after taxOrdinary Shares

Price/Earnings Ratio

2013 2012 201115.08% 11.77% 13.32%

Share Price €5.95 €4.47 €3.36

Aer Lingus - 17.27% (2012)(share price €1.105)

PE Ratio = Market Share Price EPS

* Market Share Price refers to share price at financial year end

Comparison Within the Industry

Year to Date Share Price Chart

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